Purpose
The preference agreements between the international economic blocs
determine which goods from which countries of origin are allowed to be
imported to countries with a preferential tariff.
The vendor uses the vendor declaration to certify the origin of its
goods at its own risk and thus certifies that the goods sold havepreference authorization.
The vendor declaration serves as preference verification with regard toexports into a certain target country and can be checked by the Customsauthorities at any time. The beneficiary is the importer of goods froma country that adopted an agreement with the exporting customsterritory.
Because many parts from different countries of origin are processedinto one single product, it is often necessary to divide the value ofthese goods proportionally by country of origin and apply preferencesaccordingly.
If the recipient of a vendor declaration processes a product in such away that a certain percentage rate of value increase is exceeded, thecountry carrying out the value-increasing measures is the country oforigin.
As a result of these regulations, a vendor declaration may only beissued if the manufacturer of a product ensured in the preferenceagreements that this product was processed in the relevant countrywhich is then declared country of origin. In addition, the commercialenterprise has to have a valid vendor declaration from the previousvendor. Consequently, you often have to ask your own vendor to submit avendor declaration so that you yourself can issue a vendor declarationto your customers. Dunnings are often required.

Integration
This report supports the request or dunning of long-term vendordeclarations. The system checks for the materials determined by the
selection criteria if they are marked as preference authorized in thesystem. If not, or if a vendor declaration expires, you have to requesta new one for the relevant material, or if you have already done so,you have to dun it. If a material is marked as preference authorizedfor only a couple of preference zones, you also have to request a newvendor declaration.

Prerequisites
To run the report successfully, the following prerequisites must be
fulfilled:
o Plant-dependent purchasing info records must exist
o The preference zones for the plant countries must be maintained
o The text containers must be maintained in the required languages,
meaning, according to the "Vendor language / Common language"
parameter either in all languages for which vendors are selected or
in the selected common language only.
If you did not maintain the text container in the requiredlanguage,
the system tries to use the logon language. If the text container
does not exist even in the logon language, the system does notissue
the letter or dunning.
You can maintain text containers under Tools->SAPScript->Standard
text. The text ID is always 'ST'.

Selection options
The selection screen provides various possibilities to limit the amount
of data to be edited. It is recommended that you lay down as many
limitations as possible and that you at least limit according tovendor.
If you only want to write to vendors within the EU, you can do this bysetting the "EU vendors only" parameter.
You can limit the materials to be processed not only by materialnumber, type and goods group, but also by determining the lowest pricelimit to be considered and by activating the PO tolerance check, whichexamines whether purchase orders or goods receipts for an info recordtook place within a tolerance period in days to be determined.
For this tolerance period, you can set a default value for the plant inPreference Customizing (Control data vendor declaration). However, thesystem processes entries on the selection screen with priority.

Processing settings
This report knows two execution moduses. You can choose these by the
"Simulation run" parameter.
The simulation mode (set parameter) does not record any activity youcarried out (e.g. printing of a dunning) in the system. It can be usedfor control purposes of the data to be expected.
The update mode records the fact that a letter or a dunning was printedin the system, so that the system generates a "follow-up letter" whenyou run the program again.
Using the list display parameter, the system issues the relevantmaterials per vendor in list form. The list can be sorted - however,the vendor key remains the first sorting criterion.
From the list, you can request or dunn long-term vendor declarationsfor selected materials or you can transfer the data as serial letterfields to MS Word. Interface for the serial letter output is onlysupported in the logon language.
Since the existence of a vendor declaration is recorded asplant-dependent in the system, the "Aggregate" parameter enables you torequest or dunn a long-term vendor declaration per vendor and materialnot for each plant separately. However, for each combination of plantcountry and country of origin, you have to request or dun a long-termvendor declaration because another commodity code may be used or otherpreference agreements may exist.

Activities
You can create variants for this report. This means, you have to enter
and save the selection criteria so that they can be called up any time.
To create a variant, press the enter button after the entry ofselection criteria to check if you entered all necessary parameters. Ifthe system asks you to enter further information, complete the info andafterwards, carry out the completeness check again. Since the systemdoes not need any further information, click on the diskette symbolbelow the menu bar or enter CTRL-S. Another screen appears on which youenter the name of the variant and its meaning. Afterwards click on thediskette symbol below the menu bar or enter STRG-S. Now, the systemsaves the variant and you can use the variant again by calling up thereport and clicking on the "Catch variant" button or pressing Shift-F5.