Formula requirement for SD Pricing

[Former Member]

Dear Gurus,

I need a help in writing a formula for SD Pricing. Following is the scenario, I am using backward pricing where i will input the gross price of the material and based on that to get the net price I want to deduct applicable condition values for example :

Gross Price : 100 INR

VAT : 4%

FREIGHT : 10%

SO for the pricing my condition should be

Gross Price : 100.00

VAT (Deduct) : - 3.846

SubTotal : 96.154

Freight (Deduct): - 9.091

Net Value : 87.063

Here i have deducted 3.846 as VAT because Gross price 100 which is inclusive of 4% VAT (Subtotal + 4% VAT) so i have used the formula that :

(4*100) / (100+4) = 400 / 104 = 3.846

So i want to write a formula which I want to use in the pricing where the condition value will be given as 4% however the based on the formula system will calculate the VAT (Deduct) % as 3.846.

I am not able to write the formula... please help.

Thanks in advance.

[Former Member]

Hi there,

Basically VAT is a tax. So it will have a positive effect on the price ie it will add up on price. To have a negative effect or substract from price, you need to define the condition class as A, discount or surcharge. In +/- choose - sothat it havs a negative effect. In calculation type select %. Leave the condition category field. If you have tax mentioned in condition class or category, system will default +/- as +. So it will add up to the price.

Then pls clarify me 1 thing. If gross price 100 is inclusive of VAT, why again you need to deduct VAT? So 96.154 is the original price without VAT.

When you mean frieght, is it freight discount or freight tax?

On what value you want the freight to be calculated?

Now if you want to deduct 3.846 from 100 & then deduct discount, your formula should be like this:

[100 - (104/100*100)] * 90/100.

Also in freight, your base consition should be the value storaed in subtotal.

Regards,

Sivanand

[former_member550050]

Hi

In your Tax condition type use the calculation formula as H which means % included

Now if a material price is 100 (gross) then in this case with the above settings tax will be 3.846 that is 4% included

After changing the calculation type you should maintain condition records in VK11

To have frieght calculated inclusive in this subtotal the same calculation type with appropriate from and to in your pricing procedure

Your requirement can be surely met with the configuration of pricing itself and no ABAP formula or any formula is required

Pls try yourself

Regards

Raja

Edited by: ramanathan raja on Aug 25, 2008 8:24 PM

[Former Member]

Dear Ramanathan raja,

Thanks a lot for the solution you have provided. I did a sample test and that was successful along with a formula to make the amount -ve. I need to test the complete scenario by changing the entire set of condition used in the pricing.

Thanks again.