SAP® preference calculation

Process origin of goods and preferences efficiently with SAP® preference costing

SAP® Preference Calculation can help companies to automatically take advantage of EU trade agreements and the associated customs clearance benefits in foreign trade.

Background: Customs preference thanks to international trade agreements

Customs preference is an important trade parameter in the international business environment in order to strengthen one’s own competitiveness. With goods that are delivered with preferential treatment, a supplier benefits from favorable customs rates or can even bring the products across borders duty-free. This is because the European Union has concluded trade or preferential agreements with most regions of the world.
However, the customs calculation of goods is very complicated and time-consuming. Companies need to know the rules on the origin of the goods each time, comply with them and document them in an audit-proof manner. A manual calculation for each product therefore means a considerable amount of work.

SAP® preference calculation: simply benefit from tariff preferences

Our solution: SAP® preference calculation as part of an integrated add-on for your SAP® system. With GENESYS, you are using software that is perfectly integrated into SAP® via an interface connection. GENESYS enables you to automatically determine the origin of goods and reliably calculate preferences – all on the basis of orders, goods receipts and bills of materials. In this way, the SAP® solution can help you and your customers to save costs in foreign trade.
You can also use GENESYS to record long-term supplier declarations, request supplier declarations from your suppliers and have these issued very simply.

These processes are also important in order to benefit from the preferential tariff: The supplier declarations, for example, serve as proof that a certain percentage of your own manufactured goods are made from EU materials. This in turn proves to customs the origin of your goods and their entitlement to the preferential duty rate. For example, a customer with whose country the EU has a trade agreement can receive your product at a lower price – saving on customs duties.
GENESYS simplifies this process: with the add-on, you can manage supplier declarations for your entire material bill of materials in the SAP® system and thus easily carry out an SAP® preference calculation.

SAP® preference calculation with GENESYS: You can handle these tasks

With SAP® Preference Calculation, many processes related to requesting and sending supplier declarations and determining the origin of goods are carried out automatically, making it easier for you to calculate preferences.

Request and manage supplier declarations:

• Automatic determination of required proofs using the stored data on orders and goods receipts
• Adjust settings for automatically requesting supplier declarations and sending reminders
• View and filter the status of requested supplier declarations
• Manually request supplier declarations and send reminders

Calculate preferences using the supplier declarations:

• Check status of received supplier declarations
• Process new supplier declarations with the request wizard
• Remind suppliers of required evidence
• Enter supplier declaration or preference data and have preference status determined automatically
• Set up automatic calculations
• Automatically store list rules or add them manually
• View result logs and limit value tables
• Automatic insertion of declarations of origin on invoices

Create and send supplier declarations:

• Automatic verification
• Comparison of the verification with existing long-term supplier declarations
• Automatic insertion of supplier declarations on invoices