VAT Calculation MRP/Selling price

[Former Member]

Hi All,

I have a client requirment that in some states of the India VAT should be charged on the MRP and some States it should be on Selling price.

Please suggest me how can I maintain this two options in my Pricing Stucture.

Also make me clear what is Sales Price and MRP.I am dealing with the Pharma Client and Pricing is on Batches.

Regards

venakat

[Former Member]

This message was moderated.

[Former Member]

Hi.

MRP - Maximum Retail Price

Check below link for more info.

http://www.fullstopindia.com/mrp-maximum-retail-price

Though you said, for some states, the VAT should be charged based on the MRP and some States it should be on Selling price, for SAP -> It is always the gross value is the base for tax calculation.

Therefore now the only question is, how you calculate the gross value in the sales order, whether it is from MRP or from selling price. I hope you have 2 condition types defined for selling price and MRP.

You can handle it like this. Put both conditions in the top level of the pricing procedure. Create and assign a requirement routine to those 2 conditions to check the state of the customer in the sales order.

Eg: For states which you need to consider MRP, only the MRP condition will active. (Step 10 in the pricing procedure)

For states which you need to consider selling price, only the selling price condition will active. (Step 20 in the pricing procedure)

Therefore at a given time, only one condition will be active in the pricing procedure.

Now to calculate the gross value put from step 1- to step 20. Since only one step is active at a time, gross value will be correcte always.

Hope this helps!

Best regards,

Rahal

[Former Member]

Thanks Rahal,

In my pricing procedure I have taken VPRS condition type and calculating the pricing of the material master

Step Ctr Con, Ty Frm To

10 0 VPRS Internal price B 4 ERL

20 0 ZD00 Stockiest Discount 10

30 0 Net Price 10 20

40 0 JEXP IN: A/R BED % 30 10 16

50 0 Net+BED 30 40

60 0 JCEP IN A/R CESS % 40 10 16

70 0 JESP IN A/R SED %

80 0 NetBEDCess+HCess 50 70

90 0 Sale Price 80

100 0 ZVAT Output VAT 90 10 16

110 0 NTP 90 100

120 0 ZDIS Retailers Margin 110

130 0 NRV 110 120

Please suggest me a suitable structure for calculating the MRP price.

Thanks in Advance.

Regards

Venakat

[Former Member]

Please provide me an helpfull suggestion.

[jignesh_mehta3]

Hello,

If my understanding is correct, you want to either charge VAT on "90 0 Sale Price" or on "130 0 NRV"

Now this requirement is for particular States.

For this you will have to create two Condition Types for VAT & place then accordingly in Pricing Procedure (one below Sales Price & other below NRV price).

Now you need to maintain Conditions Records for required Condition Types based on the State (Region) of the Plant & Region of Customer.

This will make sure that VAT on Sales Price or on NRV Price as per the Condition Records.

You can use Access Sequence like these one:

Country/Reg.Plant/Reg.Cust/Tax.Cl.Cust/Tax.Cl.Mat/Material

Hope this helps,

Thanks,

Jignesh Mehta

[Former Member]

Requirment is got quit changed.So closing this thread nad opening a new one.

Thanks.

Venkat