Purpose
Between the international economic blocs, there are preference
agreements laying down which goods from which countries of origin can
be imported into countries with preference.
With a vendor declaration (LE), a vendor certifies the origin at itsown
risk and thus the preference authorization of the sold goods.
The vendor declaration serves the customer as preference verificationregarding export into a particular target country and can be checked bythe Customs any time. The beneficient is the importer of the goods froma country having an agreement with the exporting customs area.
Because of the processing of various parts from different countries oforigin into one product, it is necessary to divide the value of thesegoods proportionally by countries of origin and apply for preferencesaccordingly.
If the recipient of a vendor declaration processed a product in such away that a particular percentage rate of value increase is exceeded,the country in which the value-increasing measures have been carriedout is considered to be the country of origin as from this point oftime.
As a consequence of this regulation, a vendor declaration may only beissued, if the manufacturer of goods can confirm in the preferenceagreements that these goods have been processed constituing origin. Inaddition, the trading firm must have a valid vendor declaration fromthe previous vendor. This often means it is necessary to request itsown vendor to submit a vendor declaration in order to be able to issueone to its own customers. Dunnings are also common practice.

Integration
This report supports the request or the dunning of long-term vendor
declarations. The system thus checks for the materials chosen by theselection criteria if they are marked as authorized to preference inthe system. If not, or if the validity date of a vendor declarationexpires, you have to request a new vendor declaration for therespective material or, if you have already done that, you have to duna new one. If a material has only been marked as preference authorizedfor individual preference zones, a new vendor declaration will berequested.

Prerequisites
To carry out the report successfully, the following prerequisites must
be met:
o There must be plant-dependent purchase info records
o You must have maintained the preference zones for the plant country
o You must have maintained the text containers in the required
languages, that is, dependent on the vendor language / common
language parameter in either all languages in which the vendors are
selected or only in the chosen common language.
If a text container has not been maintained in the required
language, the system tries to use the logon language. If the text
container is not even available in the logon language, the letteror
dunning will not be issued.
You can maintain the text container underTools->SAPScript->Standard
text. The text ID is always 'ST'.

Selection options
There are several possiblities on the selection screen for limiting thedata
volume to be processed. It is advisable to set as many limits aspossible, but at least by vendor. If you are only writing to EUvendors, you can do this by setting the "EU vendors only" parameter.
The materials to be processed can be limited, in addition to thecriteria of material number, type and group, by also determining thelowest price to be considered and by activating the PO tolerance checkthat checks if purchase orders or goods receipts for an info recordhave taken place within a tolerance time in days that can bedetermined. For this tolerance time, you can set a default value forthe plant in Preference Customizing (Control data vendor declaration).An entry on the selection screen, however, will be treated withpriority.

Processing settings
The report knows two execution modes. These can be chosen by the
'Simulation run' parameter.
The simulation mode (set parameter) does not record any of the executedactivities (for example, printing a dunning) in the system. It can beused to control the expected data.
The update mode records the fact that a letter or dunning has beenprinted so that the "follow-up letter" will be generated if you run theprogram again.
The list display parameter enables you to print the materials inquestion by vendor in list form. The list can be sorted with the vendorkey always remaining the first sorting criterion.
Proceeding from the list, you can request or dun long-term vendordeclarations for selected materials or the data can be transferred asserial letter fields to MS Word. The interface to the serial letteroutput is only supported in the logon language.
Since the existence of a vendor declaration has been saved asplant-dependent, the "Aggregate" parameter enables you to request ordun a long-term vendor declaration by vendor and material, not for eachplant separately. However, it is necessary for each combination ofplant country and country of origin necessary to request or dun along-term vendor declaration because another commodity code may be usedor other preference agreements may exist.

Activities
It is advisable to create variants for this report. This means that the
selection criteria have to be entered and then these entries must besaved so that they can be called up again at any time.
To create a variant, press the entry button after the entry of theselection criteria to check if all necessary parameters have beenentered. If the system asks you to enter further information, completethis and afterwards, carry out the completeness check again. If thesystem does not require any further information, click on the diskettesymbol below the menu bar or enter CTRL-S. Another screen appears onwhich you enter the name of the variant and its meaning. Then click onthe diskette symbol below the menu bar or enter CTRL-S. Now, thevariant has been saved and you can use it again by clicking on the"Fetch variant" pushbutton or by pressing SHIFT-F5 when you call up thereport again.