Tax condition type calculation

[Former Member]

Hello All,

In sales pricing procedure, we define a tax condition type, let's say ZTAX. We maintain condition record for ZTAX in VK11. We maintain the rate of 10% VAT for cond type ZTAX. We also define tax code A0 in condition record in VK11.

In the sales order pricing procedure, for condition type ZTAX, suppose in "from" and "to" colums we take basic price into account and so when pricing is determined in sales order, the rate of 10% is calculated on basic price and so the tax amount is EUR 10 in sales order (assuming basic price is 100EUR).

My question are :-

a) I think, we need to maintain the same conditon type ZTAX in tax procedure for tax code A0 and with rate as 10% in tax procedure and define tax account keys in tax procedure to determine the tax GL account. I need to know how the basic price of EUR 100 is carried over from sales order pricing procedure to tax procedure ??

b) Do we need to define account keys in sales order pricing procedure ??

c) In the sales order pricing procedure, for condition type ZTAX, suppose in "from" and "to" colums we take basic price minus discount into account and so when pricing is determined in sales order, the rate of 10% is calculated on basic price and discount and so the tax amount is EUR 8 (10% on 80 EUR) in sales order (assuming basic price is 100EUR and discount is EUR 20). I need to know how 80 EUR is carried over to tax procdure to calculate the tax amount in tax procedure ?

regds

[Former Member]

hi pam

yes what ever you said is right regarding your explanation about ZTAX condition type in pricing procedure and its tax code maintaince in VK11 & FTXP.

exactly taxes is based up on base price if you maintain the same on from and to columns.

coming to your questions:

a.a. not necessarily need to maintain same condition type that is ZTAX if it is not an excise duty in tax procedure if it is there in customer master and material as a ZTAX condition type that is sufficient for sales taxes or local taxes. but you need to maintain a seperate account key which in turn links to G/L account for interface to FI. no you need not carry the base price to tax procedure all will be defined and calculated in pricing procedure itself. but the values will be posted into seperate G/L accounts.

b.b. this is your comfort if you want to take standard account keys you can or else if you want to define your own account eys that is also great. but we need to have it in pricing procedure.

c.c. here you are discuissing the thunb rules of SAP. normally pricing is calculated as BASE PRICE - DISCOUNTS + FRIEGHTS + TAXES. you can define the same in FROM & TO Columns that the taxes has to be calculated in this way. every thing you need to calculate in that pricing procedure sheet itself.

finally we have to arrive at a figure what client wants or what he is calaulating right now.

hope this clears this issue