Managing Octroi

[Former Member]

Hi,

I have a problem with managing Octroi in our company.Can some one throw some light on how to mange it in a PO for the goods that are being procured.

Although i have gone through many threads in the forum i havn't been able to get a definitive one.

Please guide me in the same.

Thank you

[deiva]

Hai,

1.Octroi is a kind of duty or tax collected on the products procured.

2.This u can manage by creating the Octroi as a surcharge condition type in M/06 & maintain this in pricing procedure M/08.

3.If u want to track thro' GL accts assign the accural to this condition type in pricing proceudre.

[Former Member]

Thank you,

Yes we have created this condition type and incorporated it into a PO .

1.Then while invoicing for the same should we settle the same as a Planned delivery cost?

2.Should the GRN be done before/after the invoicing of octroi or is it not relevant as to which happens first.

Please

[deiva]

1.Then while invoicing for the same should we settle the same as a Planned delivery cost

Yes u have to settle this octroi as a planned delivery cost only in MIRO.

2.Should the GRN be done before/after the invoicing of octroi or is it not relevant as to which happens first

Generally, the MIRO should be done after GR only. You make the down payment for Octroi before GR & do the MIRO after GR. The payment is adjusted accordingly by FI for OCTROI vendor,

[Former Member]

Thank you once again.

Now here is where is the problem is:

At the time of raising this PO we are :

1.Not able to determine the octroi cost.

2.It goes to a different vendor.

Then In that case what is the way ahead.

[Former Member]

Hi,

steps..

1.Create a condtion type m/06 for octroi.then added to ur pricing procedure.

2. how the system want calculate octroi.(exmaple oct = basicexcisevat)

3.Mumbai state only give tax 5.5 oct

4. oct amt is added to material amt.u can't get oct amt.

5.It is not claimable.

6.Before invoice u add it in PO.After GRN do u want add it planned del. cost

rds

kavi

[deiva]

Hai,

At the time of raising this PO we are :

1.Not able to determine the octroi cost.

Maintain the minimum cost for the octroi in the PO itself.

Do the amendment in the PO with exact value before doing GR.

2.It goes to a different vendor.

Maintain the vendor in the PO - item level - condiitons tab - Octroi condiiton - go to details - enter the vendor name.

[Former Member]

Hi pradeep.

My case is octroi amount added to material cost.

at same time that amount , why it will add in my base amount?

First clear that octroi is coming pricing or tax procedure.

pls ,how can i solve that one?

Rds

kavi

[Former Member]

HI,

You can copy the existing condition for Octroi. Eg. OCM etc and rename it.

Then assign and allign the condition of octroi in your pricing procedure. Calculate the steps accordingly for octroi.

Once based on the formula the system shall then calculate the octroi value.

Hope this helps

Regards,

Prasanna

Award pls if helpful.