Tax on the cost

[Former Member]

Dear Frnds,

We provide samples to customer for which we use a different document type in sales. The pricing for this order contains no net price but just the cost (vprs). There is a requirement where we need to include tax on the cost price in the sales order which should be acccrued. Is that possible tax on the cost if not is there an alternative.

please help me with regards to how i could do the same.

Regards

Maddy

[Former Member · Accepted solution]

Hi,

Start wit creating a new pricing procedure for this. Use either VPRS as suggested or a new condition type where the cost is maintained. This proce will go to Revenue G/L. Include your tax conditin types that calculate tax on this price and assign respective tax G/Ls to these condition types.

The last and important step would be to create a new conditin type called 100% discount and assign a Business Promotion G/L to this condition type. Apply this 100% discount on the amount payable by the customer. This will make the customer receivables as 0.

Therefore, the base price will go to revenue G/L, Taxes will go to Tax G/Ls and 100% discount will go to Business promo g/l and Customer account will be also zero.

Let me know if you have any further issues with respect to this. I have done the above configurations in my previous client and it is working perfectly fine for me.

[Former Member · Accepted solution]

Dear frnds ,

Thnk you all for your responses.

I have created a new condition type for tax which is calculating it based on the cost (VPRS). The new condition type has accrual ticked for it in the condition type.

The Net value is zero which is what the cust requires .......delivery/transfer or/pgi is done............no invoice is generated

The client doesnt want the invoice to be generated but tax amount has to get accrued and cleared at the end of every month.

please recommend how i could achieve the same with gl accounts

regards

maddy

[Lakshmipathi · Accepted solution]

You can consider generating Proforma Invoice through which, this can be achieved directly. In case, client is not interested to execute VF01 separately, you can execute VF06 through which the job can be scheduled in back ground at any given time.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Thank you Mr lakshimathi 1 query tick on accrual converts the tax condition type in to a statistical condition type. I was under the impression that statistical condition types will not hit any G/L accs. if that is the case how will this scenario work.

Sorry to take up your time but i am just tryin to understand the logic behind it.

thank you

[Lakshmipathi · Accepted solution]

tick on accrual converts the tax condition type in to a statistical condition type

Sorry not sure what do you mean by this and where. Normally, in pricing procedure, if we tick the box Statistical, no need of assigning an Account Key and hence, obviously, the value will not hit any G/L Account. If this has not answered, please brief what your pricing procedure is and what exactly, you were trying to do.

thanks

G. Lakshmipathi

ps:- Please change the thread to "Not Answered"

[Former Member · Accepted solution]

Dear Sir,

My point is when I tick accrual for the tax condition type(in config) the system automatically converts it into a statistical condition type irrespective of whether there is a tick on statistical in the pricing procedure for that condition type.

I am not familiar with the accruals concept hence i would like to know how the amount(tax) is added up/ accrued for various sales orders if no Gls are assigned.

thank you for your time

[Lakshmipathi · Accepted solution]

I am sorry, still I am not clear as to why a tax value should be posted to an accrued account. In any country, it would be logical that as and when any invoice be it is a normal sales billing or sample sales, the respective tax amount should be paid to the tax authorities every month and from SAP point of view, this is possible only if you post the amount to FI which is possible only if an Account key and G/L Account maintained for that condition type.

Nevertheless, you can try with this but I am not sure on the outcome.

In condition type, dont tick the box for Accrual and in pricing procedure also, dont tick the box "Statistical" for that tax condition type. Assign a different Account Key to this condition type. Now in VKOA, you can see two tabs (a) G/L Account and (b) Provision acc. In normal circumstances, only in first tab, we assign the G/L Account. In the above case, you leave the first column as blank and assign in the second tab for the above Account Key.

I am just giving a rough suggestion and you have to test it and update the forum.

thanks

G. Lakshmipathi

[Former Member]

Hi,

We have simulated the scenario in our system for one of our client . Where we created a Sales order which contains VPRS,UTXJ,JR1 and one additional Z condition type with accrual tick mark in condition type.

For the Z condition type we created a accrual key and assigned in the pricing procedure and G/L accounts maintained in SPRO>SD>basic Functions>Account Assignment/Costing>Revenue Recognition-->maintain Account Determination

Done Sales order,Delivery and Invoice. During the Invoice the postings was like mentioned below:

Customer a/C +

Customer A/c - (This line has to be passed in BTE - When accounting document is posted this BTE is called)

TAx a/c -

tax a/c +

Tax accrual a/c -

If this postings are satisfactory then you could proceed with this solution.

Regards

[Former Member]

Hi,

OK at the end of the month create a single invoice document. For the tax condition type create a Accrual key and assign it against the Condition type in pricing procedure.Let the tax condition type be statistical no issues.

maintain the G/L accounts in SD>Basic Functions>Account Assignment>revenue Recognition>Maintain Account Determination-->Assign G/L accounts for revenues and deffered revenues

[Former Member]

Please do assist in getttin a solution

[Former Member]

accidentaly marked as answered

[Former Member]

Please do assist

[Former Member]

Thnk you Lakshmipathi,

i will try and explain to u the scenario.........this tax is basically levied in the US ..GA use tax self assesed on demo material so far the client was doin the calculation for the same manually as the computation was not done in the sales order. They want the tax accrued which they will then pay on a monthly basis.

The value that we see for these transactions on the books is the cost of the material when it is withdrawn from inventory u2013 it is withdrawn from inventory (credit inventory) and charged to an expense account (debit expense); therefore, we need to come up with a way to self-assess the use tax based on the cost of the demo material when it is withdrawn from inventory prior to it being shipped or sold to the customer at no charge.

Tax amount should accrue either during sales order entry or during post good issue of the delivery.

There is no price condition type in the pricing procedure only VPRS to which I have added a tax condition type (accrual ticked) I havent included any tax code i the conidtion record for the tax condition type.

I hope this makes things more clearer.......do let me knw if I am on the rite track

Tnks

Edited by: roshan raut on Mar 8, 2011 6:23 AM

[Lakshmipathi]

You have to try my last suggestion given above. In fact, I forget to mention that tax value will be posted to FI based on the settings in OB40 which is inter linked to an Account Key / Transaction Key, assigned in your pricing procedure.

Else it is better to develop a zee table where you can store the billing value and the corresponding tax value so that at the month end, based on this report, statutory payment can be made.

thanks

G. Lakshmipathi

[Former Member]

Dear friends/ lakshmipathy,

I tried to run the full cycle for testing .

1)Sales Doc type ZSD -SD Document category I( order w/o charge).

2)The pricing procedure included VPRS and based on which I have calculated Gtax(but not assigned any tax code to the conidtion record just the %).

3)I save and create the subsequent delivery document/transfer order/PGI.

4)On creation of the invoice the accounting doc is not getting created as the net value is 0

Requirement

1)I would like the tax value from sales order to get accrued in 216200 g/l acc

2)The customer doesnt want to create the invoice(is it possible to hit the g/l acc without creating invoice).

3)Can we write code during PGI to hit the accrual acc.(in short do wat invoicing does.

4) Finally do i tell the customer to create invoice (VFO6 background job ) as the only solution through standard process.

Please adviceee

regards

Maddy

[Former Member]

one more request pls explain t me how the accrual will work in this scenario

All the taxes for the mnth will be collected and then cleared at the end of every month

Thanking u

[Lakshmipathi]

I feel, you were complicating the system too much, since couple of suggestions given by me above can be achieved with straight configuration settings.

Also, as I said earlier, all tax posting will be based on your OB40 settings only, and contradict to this, you were expecting the postings to happen while doing PGI which depends on OBYC settings.

Still if you are firm in posting the tax cost along with your inventory posting without doing any invoicing, you can try this through user exit.

In OBYC, for Transaction GBB, you create a new General modification by pressing Cntrl and F4 with the combination of your regular Valuation modifier and valuation class where you assign the G/L Account 216200. With a delivery user exit, ask your ABAPer to consider that new General modifier for the combination of either delivery type, or delivery item category (it depends on your choice) and force the postings to the assigned G/L Account.

thanks

G. Lakshmipathi

[Former Member]

Dear lakshmipathi,

Thank you for the response.

I would like to use standard config as well but the problem here is the sales order net value is 0 so if i use Sd document cat I(order without charge) generation of accounting doc is not possible .............................................................................................and again if i use SD doc cat O standard incompletion log would include net value.

Even if I manage to create invoice without net price my biggest issue is not posting tax against customer because he is not liable for the same, it is the sender who is paying the tax to the govt.

I am not sure if these issues are resolved with the config solution provided by you. Awaiting your response.

Mr lakshmipathy and every1 else who atleast gave this issue a thought thnks for the effort and time.

Regards

maddy

[Lakshmipathi]

Since as per my earlier indication, if you maintain VPRS as your pricing condition type and remove the statistical, then you wont face any issue.

thanks

G. Lakshmipathi

[Former Member]

Friends,

I am considering one more possibility for the above mentioned issue.

I could have price in the sales order and then a condition type offering a 100% discount plus my tax condition type.

If i do invoicing is it possible to not hit the customer accs for the above entries as he is not expected to pay (being a sample sales order) but insted make the sending company liable.(accounting entries on invoicing)

please do give me ur feedback.

regards

Maddy

[Former Member]

Thanks..

[Lakshmipathi]

In such cases, have your VPRS as a selling price which means, this condition type should be on top of your pricing procedure.

thanks

G. Lakshmipathi

[Former Member]

Dear Lakshmipathi,

Thnks for your response. Unfortunately I am not able to understand your response. Please elaborate. This is a US scenario.....The only condition type with a value populated in it in the procedure is the VPRS. how do i convert it in to a selling price.

regards

Maddy

[Lakshmipathi]

Normally, VPRS would be the last condition type in any pricing procedure. What you should do is that you bring on top with first step number and delete the last one. Search in forum how VPRS can be used as a selling price.

thanks

G. Lakshmipathi

[Former Member]

Hi Roshan,

Possible ways u can do,

1.Create one more manual condition type for price and assign this condition type in your pricing procedure below the price condition ask user to enter price(cost) manually in that condition type. Then system calculates tax on manual condition type.

2.If you have different document type for sample sales you can write a routine in(if the document type ZXX then system should take price as VPRS condition amount) VOFM and assign thisroutine to pricing condition type..

Thanks

Rao

[Former Member]

Thank you Mr Lakshmipathy,

I was thinking on the same lines but i was not sure of the same. Thank you for your time. I will test the same and respond.

Regards

Maddy

[ajitsingh6]

Dear ,

You can that way or just need to Add another pricing condition in Priccing Procedure at first step in ur pricing

and keep it as statical and do maintain pricing condition value same as VPRS and keep ur Tax calculation based

on this perticular Price Condition.

Regards

AJIT K SINGH