Tax - Changes

[avudaiappan_e]

Hi

This question is related to Retail industry.

Price for a material was say 100 without Tax, is already in stock.

Now, new tax is introduced as 5% for the materials. The selling price of the material should now be inclusive of the tax. My client is asking me to change the price of the material, so that the selling price reflects the value including tax.

Material Price (landed cost) = 100

Margin = 30

Selling Price was = 130

New Tax is 5 %

now, with tax selling price will be = 136.5

Material price to be changed as 136.5, so that in billing in store it should reflect 130 (material price) + 6.5 (tax)

Is this correct ?

What is the best practice to implement this in retail industry?

Thanks

E.Avudaiappan

[former_member1107992]

Hi E.Avudaiappan,

You are right. In the Retail industry the prices are usually maintained inclusive of tax.

So if you are using the Sales price calculation functionality you will get the base purchase price EKNN on which you will add the markup AUFS. This will give you the Net Sales Price.

The tax MWST will be added on this price to give you the Gross Sales Price which will be stored in the condition type VKP0.

With your example

Landing cost EKNN= 100

Markup - AUFS= 30

Net sales price= 130

Tax - MWST= 5%

Gross Sales price - VKP0= 136.5

This price of 136.5 will be sent out to Store POS along with the tax code of 5% which also goes with the article master. Now when the prices are calculated at POS it will show the selling price as 136.5 with tax of 6.5 included.

P.S: If you are not using the Sales Price Calculation functionality the article price that you need to maintain will be a price inclusive of tax i.e. 136.5 in the condition type VKP0 and the tax code will take care of displaying the tax separately at the store.

Regards

Kaizad

[avudaiappan_e]

Hi Kaizad

Thanks for your reply.

Can you tell me how they usually change the price for the material.

Now that the price needs to be changes from 130 to 136.5, using which transaction this can be done ?

Thanks !

E.Avudaiappan

[former_member1107992]

Hi E.Avudaiappan

If you are using the Sales Price calculation functionality the sales price is calculated by program RWVKP007 which can be called by T-code VKP5. The program uses the pricing procedure mentioned in the 'Pricing Type' maintained under the LG -> Retail Pricing -> Sales Price Calculation. In the standard it will be WWS001 which will take the base price, add markup, add tax and calculate the net sales price and gross sales price.

If you are not using the sales price calculation functionality you will have to update VKP0 directly which will be inclusive of tax.

Regards

Kaizad.