What is preference determination in SAP SD-FT - Foreign Trade?

SAP Term: preference determination

• Component: SD-FT

• Component Name: Foreign Trade

• Description: Determination of the preferential threshold value. The preference calculation is made in accordance with the source preference rules of the relevant preference agreement on the basis of supplier’s declarations and other preference documents. The preferential threshold values determines whether a product is eligible for preferential customs duties or not.

Smart SAP Assistant

• Key Concepts: 
  Preference determination is a feature of SAP Foreign Trade (SD-FT) that allows users to determine the preferential origin of goods and services. This is done by comparing the origin of the goods and services to the rules of origin set by the relevant trade agreement. The preference determination process helps users to determine whether or not they can benefit from preferential tariffs or other advantages. 
  
  How to use it: 
  In order to use preference determination, users must first set up the relevant trade agreement in SAP. This includes entering the rules of origin, as well as any other relevant information such as tariff codes and duty rates. Once this is done, users can then enter the origin of the goods and services into SAP and run the preference determination process. This will then compare the origin of the goods and services to the rules of origin set by the trade agreement, and determine whether or not they are eligible for preferential tariffs or other advantages. 
  
  Tips & Tricks: 
  It is important to ensure that all relevant information is entered correctly into SAP before running the preference determination process. This includes entering all relevant tariff codes and duty rates, as well as ensuring that all rules of origin are up-to-date. Additionally, it is important to ensure that all documents related to the goods and services are available in order to verify their origin. 
  
  Related Information: 
  For more information on preference determination in SAP Foreign Trade (SD-FT), please refer to SAP Help Portal: https://help.sap.com/viewer/product/SAP_FT/latest/en-US