tax issue

[Former Member]

Hi friends,

I have a unique scenario where , freight in one US state is taxable and in another state it is not taxable.

Now the client wants the system to be configured in such a way, that based on the state the system to automatically include or exclude as may be the case the condition type for freight under tax or non-taxable.

How do i achieve this?

Regards,

Anand

Edited by: Anand Mathur on Mar 8, 2011 1:13 PM

[Former Member · Accepted solution]

maintain 2 pricing procedures with tax after freight and the other tax before freight.

maintain 2 customer pricing procedures.

maintain pricing procedure determination in ovkk for different customer pricing combination.

assign the customer pricing procedure in customer master as as per state.

[Former Member · Accepted solution]

Hi Suresh,

thanks for your reply. This will need a mass change for all the customer masters..where the client's effort will be a lot. Can you think of any other solution.

Regards,

Anand

[Former Member · Accepted solution]

Dear Anand Mathur,

Logically you have tax calculation from Net Value so one case freight should be part of net value and other case freight should not be part of net value from which Tax has to be calculate , this my understanding from your question. THEN

I think if you maintain two different Tax condition type and put in proper sequence one is after frieght and one is before freight and maintain the required condition record

I think it will help you

Share me your feedback after this try

Regards

Hanumant

[Former Member · Accepted solution]

Anand,

Create a ztable with state as key to identify if state is freight exempt or not. Then introduce a summary line to your pricing procedure:

'Taxable value based on state' which summarizes all active conditions( Price of product and freight) . On this summary line introduce a formula which reads your Z table if exempt set XKWERT = KOMP-KZWI1(sub total tied to your sku price only) if not exempt SKU price + freight would be in this summary line. Then your tax condition should points to this summary line. Hope this helps.

Matt

Edited by: Matthew Menzies on Mar 9, 2011 3:21 PM

[Former Member · Accepted solution]

Thanks Matthew,

This seems a more workable solution, let me try and update the forum.

Regards,

Anand

[Former Member · Accepted solution]

We used a z-routine in alt cond base value on the summary line to achieve this rqmt.

[Former Member · Accepted solution]

Hi anand,

Can you explain the solution? Even we got the same problem.

[Former Member · Accepted solution]

HI,

We included a summary line ''net value-tax base'' for which we added a routine in alt cond base value. This routine checks a z-table where for all the states the taxability of the condition types are maintained.

And the tax condition types has this summary line as the 'to' field.

Regards,

Anand

[Former Member · Accepted solution]

Hi Anand,

We got problem in crediting the Freight. For the state like Tx while returning Freight, it has to calculate TAX. But for CA no Freight Tax. This is working fine in std Order with net value of product. But if we want to credit only the freight, Tax is not calculating.So how to credit freight with tax?

[Lakshmipathi]

I am not sure whether the normal tax is applicable to the state where the freight tax is not applicable.

If the normal tax is also not applicable, then straightaway, this can be addressed by having different tax codes.

On the other hand, if the requirement is to address only freight tax, then I am sure, you would be having a condition type to arrive the freight tax. So for this condition type, you need to have an access sequence of Delivering Plant and Ship To State and accordingly, the required percent should be maintained in VK11.

thanks

G. Lakshmipathi

[Former Member]

Hi,

We dont have a seperate condition type for freight tax. the % value for tax is applicable to the full document, only in some cases we have to apply that % for freight based on the State(region). only UTXJ has been maintained for taxes.

eg. ZFRT(freight condition type) should be calculated for tax along with all the other condition types like price if state is TX@5%

eg ZFRT should not be calculated for tax while the other condition types like price should calculate tax 6% for California.

Please suggest.

Regards,

Anand

Edited by: Anand Mathur on Mar 9, 2011 1:05 PM

[Former Member]

Hi Anand,

For the tax exemption to be effective, you must also enter "M" in the Condition Category field in the condition type config. for the tax category from sd-basic functions-pricing-pricing control-define condition type. After doing it, you need to maintain a licence number to perform tax-exempt to the sales area biling data of customer master data for your specific customers.

Hope these will meet your requirement after performing these options on the system.

Regards,

Sinan

[Former Member]

first, you have created condition record under freight which calculates the tax on freight.

Next create a condition table with Plant Region and Ship-to region as the fields. Then assign in access seq. and assign in cond. type.

Then you can maintain the tax rates for the combinations of the two regions. Whereever tax does not apply - leave blank.

Let me know if this works.

(i have safely assumed that US states are maintained as regions)

ADD: As per your q. - if tax relevance depends only on Ship-to region or plant region then only that field is needed.

Thanks

Edited by: S Chak on Mar 8, 2011 1:24 PM