Free course · End-to-end import + SAP
Import Process
Import PO, supplier documents, payment terms (LC, advance, open account), shipment tracking, landed cost, customs clearance and goods receipt.
What you must take away
- Flow: import PO → proforma → payment terms → shipment → documents → clearance → GR → invoice.
- Landed cost = price + freight + insurance + duty + clearance + local transport.
- Letters of credit protect both sides but need exact, matching documents.
- Track ETD/ETA and pre-alert documents so clearance starts before arrival.
In the SAP process
- Create the import PO with Incoterms and planned delivery costs (ME21N).
- Record the inbound delivery/confirmation (VL31N).
- Post goods receipt (MIGO) after clearance.
- Post invoice and delivery costs (MIRO) so landed cost reaches the stock value.
Case study
The cheap supplier that wasn't cheap
Setting. A manufacturer comparing a local and an overseas supplier for castings.
Problem. The overseas price was 18% lower, but margins fell after switching.
How it was investigated
- Added freight, insurance, duty, clearance and inland transport.
- Counted extra safety stock for a 45-day lead time.
- Found exchange-rate losses on payment.
What was changed
- Built a landed-cost calculator for every import decision.
- Split volume: imports for stable demand, local for urgent needs.
- Planned delivery costs in the PO so stock value was correct.
Outcome. True cost was visible before ordering and margins recovered.
Lesson: Compare landed cost, not ex-works price.
Illustrative composite of common shop-floor situations — no client names or confidential figures.
Practical template
Landed cost calculator
Find the true cost per unit of an imported item.
| Item | Qty | Unit price | Freight | Insurance | Duty | Clearance + local | Landed cost / unit |
|---|---|---|---|---|---|---|---|
| CST-450 | 1,000 | 8.20 | 620 | 40 | 1,060 | 310 | 10.23 |
How to use it
- Enter price and quantity from the quote.
- Add all shipment costs and duty.
- Divide the total by quantity to get landed cost per unit.
Quick quiz — check your understanding
The quiz questions stay hidden until you have spent at least one minute reading this lesson — answer from what you learned, not from clues in the options.