SD Pricing: CST and VAT

[Former Member]

My client has a scenario where he would procure item from one state and sell it in another state. In this case there are two types of taxes he takes into consideration. I have configured two condition types ZVT1 for VAT and ZCS1 for CST. In case of interstate scenario: the condition type to appear is ZCS1 and not ZVT1. However, the percentage should be higher of ZCS1 or ZVT1 for the given item.

How can this be achieved? In case i put up a condition exclusion between ZCS1 and ZVT1 and specify higher of the two, it will pick ZVT1 with the relevant percentage. But the client wants it to show as ZCS1 but with the percentage of ZVT1 in case ZVT1 has a higher percentage than ZCS1.

Regards,

[Lakshmipathi · Accepted solution]

As you would be aware in SD, taxes would be determined based on the tax code you maintain in VK11 for condition type UTXJ or MWST. In VK11, for this condition type, you would be having some combination like

a) Country of Origin of delivering plant

b) Region of Delivering Plant

c) Region of Ship To Party

d) Tax Classification of customer and

e) Tax Classification of material being invoiced

So in your case, two different tax codes needs to be maintained where the region of ship to party would be different.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Thanks laxmi,

I will tell you what all i have done. Based on that probably you can suggest accordingly.

I have created one tax category called ZVT1 in SD. This tax category i propose to use for sales tax relevancy of material master and customer master.

Material tax classifications defined in the system are : ZVT1 = 0 (Sales Tax exempt) or 1 (Sales Tax liable)

Have defined two condition types in SD pricing procedure:

ZVT1 = For VAT

ZCS1 = For CST

Condition table for VAT = Country / Plant Region / Customer Region / Material Tax Classification / Customer tax classification

Condition table for CST = Country / Plant Region / Customer Region / Material Tax Classification / Customer tax classification

Both ZVT1 and ZCS1 has their respective access sequence, with separate condition tables.

I have created two accounting keys, ZV1 and ZC2 for ZVT1 and ZCS1 respectively.

There is a material say "M1". The material is coming from TN to AP. The material has following taxes defined.

Scenario 1:

-

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ZVT1 = India / Andhra Prades / Andhra Pradesh / 1 / 1 = 4% with Tax code A1

ZCS1 = India / Tamil Nadu / Andhra Pradesh / 1 / 1 = 2% with Tax Code C1

Now ideally in SD pricing procedure, ZVT1 would say condition record not found and ZCS1 would say condition record found and populate condition type ZCS1 with value 2% and post to accounting key ZC2. But the client requires it as under: It should populate condition type ZCS1 with value 4% and post to accounting key ZC2. It is supposed to take 4% instead of 2% because it has to take the higher of the two.

Scenario 2:

-

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ZVT1 = India / Andhra Prades / Andhra Pradesh / 1 / 1 = 4% with Tax code A1

ZCS1 = India / Tamil Nadu / Andhra Pradesh / 1 / 1 = 6% with Tax Code C1

In SD pricing procedure, ZVT1 would say condition record not found and ZCS1 would say condition record found and populate condition type ZCS1 with value 6% and post to accounting key ZC2. In this scenario, SAP is right.

Hope this information is helpful to visualize the requirement.

Regards.

[Former Member · Accepted solution]

Hi kamesh,

As I understand the requirement is to get local tax or 2% CST whichever is higher in case of interstate transactions.

Hopefully you would have created two indicators ("1"-Taxbale full, "2" -Taxable against C-form) on your customer code with respect to condition ZCS1.

Now maiantin the record for condition type ZCS1 as follows:

IN AP TN 1(cust) 1(mat) 6%

IN AP TN C (cust) 1(Mat) 2%

Hope it would resolve your problem.

Do revert if u need any further help.

Reagrds

Sanjay

[Former Member · Accepted solution]

Thanks sanjay,

I think that would solve my issue, except that the end-user would need to maintain the same tax rate in both the condition tables.

Regards,