Tax on a proportion of total order only

[Former Member]

Hi Folks,

I have a scenario where a customer can request that a proportion of his total order is tax exempt, the balance is taxable at the standard VAT rate.

Example - order value u20AC1000. VAT rate is 20%. So VAT due is u20AC200. We have MWSTs calculated on that basis.

But the customer can request that 75% of the order is tax exempt.

So VAT is due only on u20AC250 (25% of the order). VAT due is therefore u20AC50.

The customer request can come on an ad-hoc basis so we need to be able to indicate at order header conditions level that a % is exempt and have the revised tax automatically calculated once the exemption % has been entered.

Any ideas how I can achieve this? I can't see anything in OSS.

Thanks,

M

[Former Member]

Hi Martin,

Create a new condition type and name it as sales tax assesable value( ZSAV) . Now in your pricing procedure assign vat condition and put the counter in such a way that vat is calculated on ZSAV.

The Condition type ZSAV is % based condition type and manually entered in the order and its value depend on main sales price .

look at this example :

Sales Price ( PR00) - 1000 USD . VAT 10 % now customer has requested 75% of sales is taxable.

PR00 -1000 USD

ZSAV- ( 75% of PR00) -750 USD

VAT -10 % on ZSAV - 75 .

this will resolve ur issue.

Regards,

Krishna O

[Former Member]

Hi Krishna,

Thanks for the feedback.

However, I don't see how this will work.

Yes I can create a calculated "taxable value" and I can make the tax condition calculate on this. But this is an ad-hoc thing. In your example, in 99 out of 100 orders the 10% tax will be due on the full 1000 USD. So I still need "standard SAP" to be doing its thing and creating a MWST condition with the 100 USD tax.

If I enter a ZSAV as part of a re-calculation routine I need the result of this to "replace" the standard MWST - I assume by setting it to inactive. I can create a custom version of a MWST to calculate the tax on the ZSAV percentage value and I can put this custom version of MWST in an exclusion group with the MWST so that it replaces it. But if I do that I seem to have problems that the MWST is automatically set to inactive even if I don't go through my manual entry process (so there is an inactive MWST even though there is nothing to replace it).

Any other thoughts?

Thanks.

M

[Former Member]

Hi Martin,

You dont have to replace the MWST condition type :

Maintain the condition record for ZSAV as 100 % So b default it will apear as 100% and tax will be on that .If you need to change u can change it manually in the order .

I have checked and its working for me .

Regards,

Krishna O

[Former Member]

Hi Krishna,

Maybe I'm being a bit slow today but I cannot get this to work.

I have entered the new "base amount" condition as a manual condition in the price procedure.

If I enter it with 100% I do get the standard taxable amount. If I enter another % it correctly calculates. So far so good.

I have redirected the MWST to this counter in the price procedure - but I cannot get it to recalculate based on my new base amount condition. So I'm stuck with tax on 100% of the order.

What am I doing wrong?

Thanks.

M

[Former Member]

Hi,

The percentage you can maintain it manually as required by customer .

You can change from 100 % to any figure as required in SO.

Regards,

Krishna O

[Former Member]

Hi Krishna,

Yes I understand that. I am able to get an amount that equals any percentage that I enter. But that is only providing me with a 'base amount' for the revised tax calculation. What I am unable to do is apply that revised tax calculation. Whatever I do my defaulted MWST (based on 100% of order value) remains. That is what I need to be able to change/override.

M

[Former Member]

Is your MWST condition type iin Pricing procedure have "FROM TO " as ZSAV step no.

Regards,

Krishna O

[Former Member]

Hi Krishna,

Yes it does. That's why I'm finding this so frustrating.

Regards,

M

[Former Member]

Hi,

Once you have changed the percentage manually in the sales order . Go to update and Use C indicator and let me knwo the result.

Regards,

Krishna O

[Former Member]

Hi Krishna,

No change. I've tried the obvious/usual things but my MWST refuses to change.

Thanks,

M