Free Goods Pricing Problem

[Former Member]

In our pricing procedure we have R100 and NRAB condition types.In sales order we are giving free goods(Exclusive).Now in condition tab for the free goods line item the value is showing as followes

PR00- Rs 150

R100- Rs 150(-)

Net Value - 0

CST- 4.50

Net Value with Tax 4.50

Rounding Off 4.50(-)

Total value - 0

So for this line item Net Value is coming Rs 4.50(-) and Tax is Rs 4.50.

In header this value is adding or subtracting from the value of main line item and showing the final value.

So how can i make the net value and tax 0 for the free goods item, so that it will not affect the total value of the document.

Regards

Jyoti

[Former Member · Accepted solution]

Hello Jyoti,

The pp should be

PR00

R100

Sub tot - Net value 0

CST cond type

and then you need to have a dis/surg cond type which is neg and 100% of CST cond. The posting will be similar to disc posting. This way u can reverse ur CST value.

This is req in this way since you need to pay CST to Govt and hence u cannot show it to be zero. But for the final value to the customer, it will turn out to be zero.

I hope this will be useful.

If any further doubt, u can post them.

Rgs,

AK

[Former Member · Accepted solution]

HI,

Did you reach the solution for it.. I am facing the same issue.

[Former Member]

hi jyothi,

what is the item category for Free goods line item!

suppose if it is different, check the price relavent indicator and statical value in itemcategory(vov7).

regards

rajesh

[Former Member]

Hi Jyoti,

First thing R100 is not free goods it is 100% discount in normal pricing.

If you want to maintain free goods pricing you have to create totally new free goods pricing procedure and create conduction record by VBN1 in normal sale we maintain conduction record by VK11 and for free good conduction NA00 for normal we use any proo or k004 k005 ext

If u maintain all this thing properly you will not face this problem

Check

Sageer

[former_member1091983]

Hi ,

Pls check ur PP settings

Req Bas.cal.type

R100 55 28

NRAB 59 29

Net value

After these condition types only ur Tax condtion types shud come... and check ur step no.s accordingly

Reg

JJ

[Former Member]

Jyoti,

R100 will depends on where you have positioned this condition type in the pricing procedure.

When you will put R100 in prior step number than the Tax so the discount will calculated till that step, and then system will calculate tax.

So Place R100 after Tax condition type in pricing procedure and change the steps number accordingly,.

Thanks,

Raja

[Former Member]

Dear Raja,

Thanks for the reply.Now i have Placed R100 after Tax condition type in our pricing procedure but still i am not getting the desired result. The PP that i maintained is like this

10- PR00

40- Gross Price From step 10

60- CST From step 40

70- Net Value with Tax From 40 to 69

80- R100 From 70 55 28

90 NRAB 59 29

100 DIFF 13 16 04

120-Total From 70 to 119

Please Guide what change is further required in PP.

[Former Member]

Jyoti,

I am agree with Avi Kamu, I confirmed that Tax you have to pay..... as its free for customer and not for the government right?

PR00

R100

Gross

Tax

Net price

NRAB

DIFF

Total

Here your net price should be only Tax amount

and Net price too.

Total is the payable amount by the company which is 0

Please maintain the requirement and Alt value for the respective condition type

Thanks,

Raja

[Former Member]

Dear Raja,

Here the business scenario is like that the company bears all the tax for free goods they shipped.So in the billing and accounting doc tax for the free goods line item, tax should not show or hit.But in he curreent PP tax is coming.So is there any way to avoid tax ?

Thanks & Regrds

Jyoti

[Former Member]

Hi Jyoti,

In this scenario you can use below pricing procedure.

Step 10- PR00.......................................................................100 Rs

Step 20 Gross Price..............................................................100 Rs

Step 30 CST (calculate on Step 20) From 20 to 20.................... 8 Rs

Step 40 Net Value( From 10 to 39)...........................................108 Rs

Step 50- R100 (From 40 to 40)..................................................-(108) Rs

Step 60 NRAB........................................................................

Step 70 DIFF..........................................................................

Total ................................................................................. 0 Rs.

I hope it will help. Please check and confirm

Thanks,

Raja

[Former Member]

Jyoti,

One can only avoid tax if the item category is TANN. But this is not the right solution.

The company needs to bear the tax even if it is free of charge item to the customer.

In such case the co puts the basic price of the material as min amt e.g. 1 rs and hence the tax amt doesn't go up.

So far as the customer goes, he is not paying since the net amt will come negative e.g. -4 rs and tax will be +4 rs. So on the invoice u need to print the gross amt (amt payable by customer)=0 rs.

I hope this is clear.

Rgs,

AK

[Former Member]

Dear Raja,

Changed the PP as per the told by you but still Tax is calculating and the system is rounding this tax value. Here in line item the Total value is showing as zero,but these values are calculated in Header level.So it's affected the total document tax amount and net value.

Regards

jyoti

[Former Member]

Hi Jyoti,

Did u reach the solution of this issue.. I have been trying to solve the problem as well.

Please help.