Tax in Free Goods Pricing

[Former Member]

Dear Gurus,

Need ur help to resolve the problem i'm facing in my Free Goods Pricing.

I have used r100 condition type before the tax calculation with 55 and 28. I'm able to bring the net value to 0 but the tax is still calculated and the same is posted to the customers account. As the deal is free of charge the customer is just issued the goods and is not entitled to pay a single penny.

My Pricing

PR00

Freight

BP+Frgt

Excise

BPFrgtExcise

r100

Net Price

VAT

Net Price

Awaiting your recommendations

Rgds

Suresh

[former_member206976]

Hi ,

As per my openion you define one more pricing procedure by keeping base price as statistical and by maintaining the applicable excise duties. Genrally if any goods are crossing the factory premises you have to pay excise duty even you give freely to customer. for this you can discuss with your client.

And you have to mention payer as self (the company which is created as customer) and automatically system will generate accounting document on payer not on ship to or bill to party.

hope it will solve your query

regards

[Former Member]

i'm calculating the exicse in my procedure. In the SO the net value is shown as 0 but the tax is calculated. In the accounting document following are the entries...

Posting Key Description Value

01 Customer 701.76

50 Revenue 5,000.00-

50 Freight Recovery 230.00-

50 BED recovered sales 600.00-

50 ECes recovered sales 12.00-

50 SHECerecovered sales 6.00-

40 Deduction 5,848.00

50 AR VAT Payable - And 701.76-

What i require is that the customer payables should be Zero and that amount needs to the added to the total deduction amount.

Awaiting your valuable suggestions

Rgds

Suresh

[Former Member]

hello Suresh,

tax amount cannot be brought to zero since company is liable to pay taxes.

now so far as customer receiveable are conceerned, there are 2 options,

1) raise a credit memo to customer for this amt.

2) create neg disc surg cond which will copy 100% of tax amt. which means the net price will be negative and taxes positive. total coming to zero. but then check if client is ready to hit neg amt to customer acc.

Also if these are samples (FOC), then u need not have big values in basic price.

there is no other way out, so far as my knowledge goes.

rgs,

ak

[Former Member]

I fits for IS Retail thne you have to use VKP0 as the condition type for price and use free goods condition type.It should not take the price of free good article to POS>