SAP provides a standard solution to cover the Intrastat processes in Europe, but those solutions are rarely implemented. Instead, most companies rely on local reporting systems (such as legacy systems, Microsoft Excel, or even paper). This is completely unnecessary because SAP provides all the data you need to execute Intrastat within your own system. Furthermore, the Intrastat solution works fine using only the standard tools. What this means is that you can manage Intrastat in SAP with minimum effort.

In my experience taking care of integrated business processes from end to end across SAP modules in the Intrastat field, I have noticed that the most challenging aspects of Intrastat for many companies are the following:

• Lack of understanding of data flow
• Lack of master data needed to provide a complete Intrastat declaration
• Lack of integration aspects in the whole process — such as clear guidelines and training for end users, lack of ownership, and a disconnect between the many local systems used to collect data, which causes additional IT and administrative costs

To solve the main three issues, I will explain how the integration process works, taking into account the data process flow, master data, transaction data, reports, and main customizing settings. Logistics and financial departments should be familiar with this solution and agree on the responsibility split needed to run this process in an appropriate way. They can then exploit the integrated data already available in the system and eliminate use of an external system to handle the Intrastat declarations.

Based on my experience, I’ll provide you with methods I have already implemented in production environments for SAP materials management (MM) and Accounts Payable (AP) in SAP ERP Central Component (SAP ECC) 6.0. I will provide the master data and transactional data needed to run this process in production and include hints on appropriate reports. The processes I describe also apply to previous versions of SAP ERP.

Process Flow

First, let me give you a brief explanation of the flow of Intrastat data. This helps not only in understanding Intrastat, but also in preventing roadblocks and taking appropriate actions to deal with issues that arise.

In Figure 1, you can see the Intrastat data flow from a purchasing point of view. It shows the relationships between the relevant purchase order header and line item Intrastat fields and the related customizing activities, info record, vendor, and material master. You can also find the rest of the main transactions you must run in order to produce an Intrastat declaration at the country level. Table VEIAV is filled based only on purchase order data that has already been invoiced. Missing invoices cause missing Intrastat declarations.

Figure 1

Intrastat data flow

How to Generate the Intrastat Report

To generate an Intrastat declaration in line with your country’s legal requirements, you have to make sure that all the appropriate information is stored in the system at the master data, customizing, and transactional data levels. This section shows you how to maintain the Intrastat data in the purchase order (header and line item level).

Create a Purchase Order for a European Plant with a Foreign European Supplier

To create purchase orders and scheduling agreements with the appropriate Intrastat data, you have to specify all relevant foreign trade fields in the header and line item of those documents, based on the customized Incompletion log. In this case, a report embedded in the purchase order or scheduling agreement transaction tells you which data must be maintained in those documents in order to have a complete Intrastat report. Otherwise the system produces a warning or error message. My example has four fields to maintain.

Under the Import tab (in Figure 2):

ModeOfTrnsprt-Border is a mandatory field. If you have maintained this field in the purchasing view of the vendor master data, then the system defaults to the purchase orders.

Under the Import tab (in Figure 3):

• Comm/imp. code no (Commodity Code) — this mandatory field is an eight-digit code that is specific by country (e.g., 39269099). A commodity code is a material grouping convention used by the government of each country to categorize the materials declared. The commodity code should be maintained in the material master in the foreign trade view for each material code. Then it is defaulted in the line item of the purchase order created for that material. The Intrastat report only picks up the commodity code if it is present in the purchase order. If the material master hasn’t automatically filled in this field, then you have to find out which one it is (see similar material code for reference or ask your vendor) and fill it in yourself. Remember to update it in the material master or you will have the same problem the next time you create a purchase order for this material and a European vendor.
  
  
• Ctry of origin (Country of origin) — this mandatory field should be completed by the two-letter country code of your vendor, such as IT (Italy) or FR (France). If an info record exists for this material and vendor, the field fills in automatically. This is because the info record stores the country of origin entered in the initial purchasing document for this material and vendor for your plant.
  
  
• BusTransactType (Business transaction type) — this field should always be value = 11 (final purchase/sale). It should default to the scheduling agreement as a customized setting. If this field has not defaulted to 11 automatically, enter it yourself and then contact your IT person so the problem can be fixed. These fields are important for the monthly report sent to the authorities declaring the imports of raw and pack materials for your plants.

The first time a purchase order is created for a brand new vendor/material plant combination the country of origin is blank (unless maintained in the material master foreign trade view).

You have to enter the field manually. After that, the system automatically updates the info record at the purchasing organization level. The next time you create a new purchase order for the same combination, this field automatically populates. To create a purchase order, use transaction ME21N or follow menu path Logistics > Material Management > Purchasing > Purchase Order > Create. Enter the document details and specify the Intrastat-relevant data at the header and line item level. In the header field, you should maintain the ModeOfTrnsprt-Border (Figure 2).

Figure 2

Import data for purchase order line item (transaction ME21N)

In the item tabs at the top (Legal categorization, Origin / Destination / Business, Declara./Values and so on) you maintain the commodity code, country of origin, and business transaction type (Figure 3). Be aware that the foreign trade data can only be maintained in scheduling agreements and purchase orders, not in contracts.

Figure 3

Import data for purchase order line item

After filling all Intrastat relevant data and verifying the other logistics details, save the purchase order. In my example, the system has provided the purchase order document number 4500000017. This is the same order that you can find in Figure 5.

Select Data for Intrastat Declaration

Once the good receipt has been posted and the invoice recorded, you collect foreign trade data from all purchasing docs for all the invoices that arrived during a specified period. To do so, the purchasing/tax office department runs transaction MEIS and populates a transparent table called VEIAV. Alternatively, you can follow menu path Logistics > Material Management > Foreign Trade/Customs > Information System > Declarations to the Authorities > European Union > Intrastat > Data Selection: Inbox. Specify the following values in the report’s selection screen, shown in Figure 4: Purchasing organization, Company code, Plants code, reporting month/year, country of declaration, currency, and Log Type. In Log Type, enter either B or E. B means that you get an error log of missing data and E is used for testing. After running the report, the system shows the details (Figure 5).

Figure 4

Intrastat data selection

Figure 5

Data relevant for Intrastat declaration

The status of the selected record is incomplete. At this stage you can use the Incompletion log to display and update the missing data in the purchasing documents, as shown in Figure 6. To get to the Incompletion log, simply click Edit, and then click Incompletion log.

Figure 6

Incompletion log

Creation of Intrastat Declarations

SAP has specific transactions for each European country that you can use to collect data from the transparent table VEIAV and then report the data to the authorities. You can save the data in a local file or diskette, or send it to a third party for further processing. For Italy, you can use transaction VE08 or follow menu path Logistics > Material Management > Foreign Trade/Customs > Periodic Declarations > Periodic Declarations > Operational > Create Periodic Declarations > European Union > Intrastat > Create file > Italy. You can easily modify the layout of these reports by adding the appropriate fields provided in the SAP List Viewer format. Figure 7 shows the details of the output obtained by running transaction VE08.

Figure 7

Modify the output of table VEIAV

Alternatively, you can also use the standard transactions SE16 or SE17 to retrieve and download the data from table VEIAV (Figure 8).

Figure 8

Download theoutput of the table VEIAV

If your company doesn’t allow employees to use transactions SE16 or SE17, then I strongly suggest that you create a simple custom program (similar to SE17) to avoid any kind of problem (i.e., system overload or authorization issues).

Monitoring Tools

SAP provides a lot of standard monitoring tools to assist you during all Intrastat phases.

The following are the transactions I have used and find most helpful for follow-up on data relevant for imports.

Monitoring the Material Master Data for Net Weights and Commodity Codes

To monitor the status of your material master data, you can use transaction VE81 or follow menu path Logistics > Materials Management > Foreign Trade/Customs > Information System > Cockpit > Import/Export > Monitoring > Master Data > Material Master > Check Report: General FT Data. Enter the following data in the selection screen: Plant and Material number ranges relevant for Intrastat. Place a check in the Exclusive check if purchasing view exists check box, and then place checks in the commodity code and net weight check boxes. This generates a list of all material with red traffic lights or green traffic lights according to whether the fields are maintained or not. It is also possible to modify the material master data directly from this transaction, as long as you have authorization to do so (MM02) in your regular profile.

Monitoring for Inco Terms, VAT Registration Number, and Mode of Transport

To monitor the status of your vendor master data, use transaction V185 or follow menu path Logistics > Materials Management > Foreign Trade/Customs > Information System > Cockpit > Import/Export > Monitoring > Master Data > Vendor Master > Check Report: Vendor Master. Specify the Purchasing Organization and place a check in the check boxes next to the fields you want to activate, such as VAT registration number, mode of transport border, or inco terms. The system then generates a list of vendors with red or green traffic lights next to the fields.

Add Entries to the Intrastat Declaration Report

Sometimes you might notice some missing entries in the Intrastat report. These missing entries are due to program errors caused by custom developments, issues in the programs, or changes in the existing data, for example. To do some troubleshooting, you can add entries to the final report using transaction VEFU or by following menu path Logistics > Material Management > Foreign Trade/Customs > Periodic Declarations > Periodic Declarations > Operational > Create Periodic Declarations > European Union > Intrastat > Add entries. Then, manually enter any other missing data relevant for your Intrastat declaration.

Internet Service

You can use the standard transaction VX98 to reach the Import Processing Internet application component. This transaction allows you to check all relevant Intrastat data at the purchase order’s header and line item level s, and immediately react on any inconsistency. Additionally, you don’t need to have any SAP transactions skills to use this tool, which is one of the biggest advantages this application provides. Figures 9 and 10 show the selection and output screen of the transaction VX98, using my example purchase order number 4500000017.

Figure 9

Selection screen of the transaction VX98

Figure 10

Output screen of the transaction VX98

Currently there are 1,036 SAP Notes about Intrastat. While I couldn’t list every one for you, here are some of the most interesting and relevant ones:

• 1112153 – Intrastat declaration of arrivals: Questions and problems
  
  
• 905026 – How is the destination region determined for INTRASTAT?
  
  
• 18129 – INTRASTAT defaults
  
  
• 1315082 – How to create an Intrastat report for the same month again?
  
  
• 789301 – INTRASTAT Declaration of arrivals on date of goods receipt
  
  
• 998451 – EU2007: New members of European Union as on 01/01/2007
  
  
• 1025506 – INTRASTAT: Italy - Foreign currency amt for new EU countries
  
  
• 459296 – INTRASTAT/EXTRASTAT: Triangular deals - intercompany billing
  
  
• 727518 – Vstup CR do EU/CR joining EU ->> FAQ /regular update/
  
  
• 734682 – EU2004: Intrastat file download report
  
  
• 673419 – INTRASTAT: Arrivals - stock transfers not selected
  
  
• 1022864 – EU2007: Incorr declaration of goods receipts for January 13.02.2007
  
  
• 616864 – INTRASTAT: Germany - No obligation to inform for domestic SP
  
  
• 397313 – INTRASTAT: Germany - No obl. to inf. at domestic sold-to-party
  
  
• 923302 – IE: Add the VAT amount in Intrastat declaration
  
  
• 31000 – Generally suppress import data in purchase order
  
  
• 1034696 – Procedure for importing new commodity codes

About new Central Eastern Europe (CEE) countries:

• 1264260 – Intrastat for Lithuania
  
  
• 1264253 – Intrastat for Latvia
  
  
• 1264191 – Intrastat for Estonia
  
  
• 979864 – Intrastat for Bulgaria
  
  
• 1016386 – Intrastate for Romania
  
  
• 977994 – Slovenian INTRASTAT
  
  
• 829311 – Intrastat Slovenia
  
  
• 998451 – EU2007: New members of European Union as on 01/01/2007
  
  
• 988936 – EU2007: INTRASTAT Preparations for declaration of arrivals
  
  
• 967716 – EU2009: The new EU countries of Romania and Bulgaria
  
  
• 711349 – INTRASTAT EU: Processing of CY, EE, LT, LV, MT, SI, BG, RO
  
  
• 1032513 – New regulation for Serbia
  
  
• 851943 – Separate country codes for Serbia, Montenegro and Kosovo
  
  
• 987716 – EU2007: The new EU countries of Romania and Bulgaria

Gaetano Altavilla

Dr. Gaetano Altavilla is a senior SAP practice manager. His focus is on pre-sales, delivery of SAP application solutions for large international corporations, and SAP knowledge management in Europe, the Middle East, and Africa (EMEA).

In his 18 years of SAP application experience working for many multinational companies, such as Procter & Gamble and Hewlett-Packard, he has covered a wide range of ERP logistic areas, focusing on the MM, WM, SD, LES, PP, PP-PI, PLM (QM, PM, PS) modules, as welll as CRM (TFM), SRM (EBP), SCM (SAP APO), and MES (ME) components.

Dr. Altavilla holds a degree with first-class honors in mathematics from the University of Naples and is certified in many SAP modules: SAP Logistics Bootcamp, SAP MM, SD, LE (SHP/WM/LE), PP, PLM (PM, QM, PS), SRM, CRM, SCM (APO), SCM (TM), FI, CO, and Solution Manager. He also has experience in ABAP/4 and application link enabling (ALE) and IDocs. He has participated in numerous industry conferences, such as the SAP Skills Conference in Walldorf at SAP SE.

You may contact the author at Gaetano_altavilla@hotmail.com.

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