Freight TAX

[Former Member]

Hi,

Freight tax need to calculate for customer belonging to 1 state and not for another state. If basic price of product after discount is zero, freight tax is not calculating for entire order. If basic price after discount is some value, at that time freight tax is calculating properly for each tax. Can u help to solve the issue?

[Former Member]

Hi,

On which value you want to calculate freight tax

is it like this

Base price - discount = net price (do you want to calculate on net price)

then make settings in price procedure as like

10 1 PR00 (Base price)

20 1 K004 (Material discount) calculate on step 10

30 1 Net price

40 1 TFTX (Freight tax) calculate on step 30

Kindly refer standard pricing procedure RVAA01 and see how condition types are logically maintained

Kapil

[Former Member]

Requt

Base price $30

Disc $30

Gross $0

Freight $10

Tax $1 ( Because of freight)

Total $11

Issue

When Gross is zero, Tax is not calculating for freight.

[Former Member]

Hi,

basic price = 100

discount = 20

Net = 80

freight = 10

Total = 90

For state 1 Tax need to calculate on Total value of 90 should include Freight.

For state 2 Tax need to calculate on net value of 80 should exclude Freight.

But in our pricing procedure if our basic price becomes zero after some discount, It is not calculating tax for both the state.

[Former Member]

I am interested in your scenario as this is a new requirement to us also. I was thinking of creating a new table by state that would indicate if to include the freight in tax amount or not. Then use a user exit to compute the tax amount.

Are you using a tax package or standard SAP? We have standard SAP so all the tax regulations and configurations are handled inhouse.

If any progress was made, please provide some insight. Thanks,

[Former Member]

Just thought of a simpler solution. Create a new condition type for Freight Tax Reversal and enter condition with key including state/region via VK13. Then enter -100% for value. In pricing procedure, modify so that new condition is after the freight but before the final net price.

If the state is exempt, the order will pull in the -100% and subtract the freight amount from the net so only the goods are taxed.

If the sate is taxable, the order will include the freight into the net amount and the entire amount is taxed.

Please provide feedback or if an alternate solution was discovered.