The most important advantages at a glance
- Solution already tested and proven by numerous customers
- Compliance with all customs requirements
- Intuitive user cockpit
Your challenge with the worst-case price calculation
For the purposes of preference price determination, it is not permissible to use the valuation price from the material master record. Instead, the actual procurement price must serve as the basis for the calculation – as required by the guidelines of the German customs authorities.
However, since this is not always possible, the customs authorities allow the highest procurement price of a period to be used for the preference price determination. Determining this correctly is a major challenge for many companies.
Our solution? Worst Case Price Program for a reliable preference price determination
The Worst Case Price Program determines the highest invoiced values of the input materials from the purchase orders or incoming invoices created in the ERP system and makes them available to the preference calculation.
his in turn has to be coordinated with the responsible main customs office. In accordance with customs requirements, the highest purchase price from a specified period is determined instead of the valuation prices and transferred to the GTS.
For this purpose, we develop a report that is implemented in the target system (SAP ERP) or made available to our customers for implementation.
The benefits of the Worst Case Price Program
Legal certainty through determination of the maximum price from various documents
Consideration of the requirements of the customs authorities
Easy operation of the tool with the help of a user cockpit in SAP GTS: filter criteria, research worst-case price, track changes, etc.
Automatic overhead of procurement costs that are not relevant for the procurement process. The following overhead rates are possible:
- Freight charges
- Customs fees
- General overheads
Reliable and easy preference price determination
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Why may the valuation price from the material master record no longer be used, but only the actual procurement price?
Companies often sell similar products to individual customers at different prices. Even non-originating materials are often purchased at different prices. According to the specifications of the customs authorities, the specific ex-works price and the exact procurement prices of the input materials must be used as the basis for calculation when calculating origin.
However, in many cases this is not possible, which is why the worst-case method may be used. In this method, the highest acquisition value of components is determined over a period of time agreed with the customs authorities and taken into account in the preference calculation.
How can legal certainty be ensured by determining the maximum price from various supporting documents?
The process is set up by PwC in the target system based on the customs specifications and can then only be changed by authorized persons within a company. Compliance with customs requirements must be ensured on the customer side.
What criteria can be filtered for worst-case pricing?
The following criteria can be filtered
- Not relevant document types
- Non-relevant material types
- Non-relevant special procurement keys
- Relevant movement type
- Relevant movement indicator
- Relevant procurement category
Depending on the settings made here, those purchasing and material documents are selected that are used to determine the highest purchase price for a period.
Can the development of the Worst Case Price Program be adapted to customer-specific requirements?
Yes, we can adapt the program in consultation with you. If necessary, this may also result in adjustments to the pricing.