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SAP Import Procurement (EPCG) E2E Process Flowchart

SAP Import Procurement (EPCG) E2E Process Flowchart

Picture Description

The flowchart visualizes the SAP procurement process for imported capital goods under the Export Promotion Capital Goods (EPCG) scheme. It encompasses the creation and approval of a purchase order with zero duty rate, handling customs duty payments, goods receipt, and invoice verification. The process necessitates maintenance of asset and G/L account numbers in the PO and includes specific steps to confirm and monitor EPCG license details.

SAP Procurement Process for EPCG – Capital Goods:

  • Request for Purchase of Capital Goods ๐Ÿ“‘: Initiation of the procurement process with a requisition for capital goods.
  • Purchase Order for Material with Zero Duty Rate ๐Ÿšซ๐Ÿ’ฒ: Creation of a PO for capital goods with a zero duty rate under the EPCG scheme.
  • Confirm Application for EPCG ๐Ÿ“: Verification and maintenance of EPCG license details, including license number and expiry date.
  • Approve Purchase Order โœ…: The PO undergoes approval based on predefined parameters before it can be issued to the vendor.
  • Stock GR/IR (Goods Receipt/Invoice Receipt) ๐Ÿ“ฆ: Recording the goods receipt in the system, affecting the asset account.
  • Goods Receipt against PO ๐Ÿ“‘: The physical receipt of goods is posted against the purchase order in the SAP system.
  • Invoice Verification for Payment of Customs Duty against PO (Vendor = Customs) ๐Ÿ›ƒ: Customs duty invoice is verified against the PO.
  • Return to Vendor (Optionally/Rework) โ†ฉ๏ธ: The process allows for the return of goods to the vendor if necessary, for rework or other reasons.
  • DR Note ๐Ÿ“„: Debit note issuance for returns or discrepancies.
  • Insurance Claim (If Applicable) ๐Ÿ’ผ: Filing an insurance claim if the situation warrants it.
  • Goods Supplier Invoice Receipt against PO ๐Ÿงพ: Verification of the goods supplier’s invoice against the PO.
  • Invoice Verification for Logistic Services against PO (If Applicable) ๐Ÿ”: Additional verification of logistics services invoices related to the imported goods.

This SAP process integrates the MM module with aspects of the Financial Accounting (FI) module and the asset management component to ensure compliance with the EPCG scheme and accurate financial reporting. The emphasis on asset tracking and export obligation monitoring under EPCG is crucial for companies engaged in import of capital goods for manufacturing with the benefit of duty saving.

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