What is liquidation in SAP SD-FT - Foreign Trade?

SAP Term: liquidation

• Component: SD-FT

• Component Name: Foreign Trade

• Description: A term given to an imported shipment once it clears customs. The paperwork completed by the importer and inspector is not subject to audit by the Customs Service.

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• Key Concepts: 
  Liquidation is a process in SAP Foreign Trade (SD-FT) that allows for the cancellation of a contract or order. It is used when a customer or supplier fails to fulfill their contractual obligations, such as not delivering goods or services on time. Liquidation can also be used to cancel an order that has been partially fulfilled. 
  
  How to use it: 
  Liquidation can be initiated in SAP Foreign Trade by going to the Sales Order or Purchase Order screen and selecting the “Liquidate” option. This will open a window where you can enter the reason for liquidation and confirm the action. Once confirmed, the order will be cancelled and any associated documents will be updated accordingly. 
  
  Tips & Tricks: 
  When liquidating an order, it is important to ensure that all associated documents are updated accordingly. This includes any invoices, delivery notes, and other documents related to the order. Additionally, it is important to ensure that any payments made for the order are refunded or credited back to the customer or supplier. 
  
  Related Information: 
  For more information on liquidation in SAP Foreign Trade, please refer to the SAP Help documentation. Additionally, there are several online resources available that provide detailed instructions on how to use this feature in SAP.