Tax increase with billing plan

[Former Member]

We have a situation of tax increase with billing plan. Tax will be increased from 5% to 13% starting July 1, 2010

For Lease & License (L&L) billing with billing plan (e.g. quarterly/yearly/semi-annual) interval beyond July, will be charged 2 tax rates:

... Up to June 2010 @ 5%

... July 2010 and beyond @ 13%

SAP Note 938856 addresses this issue. We have implemented suggested solution in the note:

1. Maintain condition records for condition type CTX1: 5% valid-to 2010/06/30; and 13% valid-from 2010/07/01

2. Apply Note 938856, move u201820100701u2019 to CH_SPLIT+0(8).

3. Change the pricing type/copying control from D to G.

The function of split date works and tax calculated according to rates maintained for specific dates. CTX1 is calculated on base price (PR00).

Problem: The base price (condition type PR00) should have been prorated according to billing plan.

For example:

PR00 Base price: $1200

If billing plan = Yearly

Billing amount: $1200 Contract start: 2010/05/01

Expected results for tax amount:

2010/05/01 u2013 2010/06/30 = 1200 * 2/12 = 200 @ 5% = 10.00

2010/07/01 u2013 2011/04/30 = 1200 * 10/12 = 1000 @ 13% = 130.00

Current problem:

PR00 Base price remains constantly at $1,200

1200 x 5% = $ 60

1200 x 13% = $156

Appreciate any suggestions on how to deal with this.

[Former Member · Accepted solution]

Hi,

Hint, (if possible for your business process). Set Base price for each month, in example fgiven i.e. 100.

Maybe it helps.

regards,

Wojciech

[Former Member]

Since this is a one-time change and the number of contracts affected is relatively manageable, we avoid having to make substantial change to pricing procedure. Have found a work around for this problem:

1. Change the configuration of condition type PR00 > Manual entries from u2018Du2019 to u201C u201C blank

2. VK12 change condition record for PR00, valid-to date to 2010/05/31 since we consider the contract start from 2010/06/01

3. VF04 Generating billing u2013 in each billing document, line item > Press Update to carry out new pricing. Then manually input the corrected net value to PR00

These are temporary changes. Once the billings for the affected contracts are generated, we will reverse the changes