Tax Calculation of free goods

[Former Member]

Hi

We have a requirement where the client wants only VAT to be posted in GL accounts and not the price.For this I tried free goods condition type R100 with AltCBV 28.But the VAT value is also coming zero. I want the VAT to be calculated on Pricing condition and then give 100% discount.

Apart from this I also tried to make pricing condition statistical and calculate VAT on it but then also system gives zero value for VAT.

Also wondering if the scenario can be addressed with Free of Change Dellivery.

[jignesh_mehta3 · Accepted solution]

Hello,

What would be the accounting entry for VAT? Would you like to charge VAT from Customer?

You can try inserting the 100% discount above VAT condition in Pricing Procedure but after doing this system will not save the document unless you enter some amount as Basic Price.

Thus my suggestion goes as this:

PR00 Rs. 100 (Condition Class as Prices)

R100 Rs. 100 (100% Disount)

Dummy Price Rs. 0.01 (Condition Class as Prices)

VAT (12%) on PR00 Rs. 12

Now you will have to post this Rs. 0.01 in some Gl Account which you will have to write-off later with a FI Entry.

Hope this helps,

Thanks,

Jignesh Mehta

[Former Member · Accepted solution]

Hi

Thanks everybody.

Actually scenario worked fine when I entered VAT condition above Discount Condition above discount condition.I even did not require to enter dummy base price for it.The accounting part is also fine since the net amount is set off in accounting by the discount and taxes are posted in g/l account. Even profitability accounts are perfect. To book the cost I have included VPRS condition type in procedure.

Thanks

[Former Member]

thanks

[Former Member]

HI,

For free goods, Pls check if you have maintained Req 55 and Alt calculation 28 for discount condition R100.

Now this condition type R100 can be maintained after the assessable value / sale price condition type.

Since it is 100% discount, this should set off the assessable value / Sale price which ever will actually configured to post to accounting, accordingly you have to configure the pricing.

The tax condition should be maintained in pricing in such a way that it is calculated on assessable value / Sale price condition type.

What this does is the sale price will get set off with R100, so VBAP-NETWR will be zero, and since tax is getting calculated on sale price only tax can be posted o GL account.

Regards,

Sridhar.

[former_member657193]

Hi

Normally in scenario where you are dealing with samples , there are cases you have to charge only TAXES / EXCISE part.

Here my SUGGESTION is you can handle this through a simple sales order process, where you have to configure a new pricing procedure.

1. Create a new document type to handle samples.

2. Create a New pricing procedure where you can keep the basic price condtion as Statistical and rest all same as wht is is there your main pricing procedure. Just juggle with the TO-FROM to capture the TAX part in the total.

3. Doc pricing procedure will help you to pick the new Pricing procedure

4. Now Process this as a normal sales order

5. This new document type will help you to have a proper reporting.

The only constraint here is USER has to punch a fresh order seperately for such scenario. He cannot give a free good in the same sales order which is used as standard.

The other way is you can configure a FREE GOOD Determination procedure as suggested where you need to then have your Single pricing procedure accomodating the same scenario.

Thanks

RB

[former_member184555]

In the pricing procedure, position your R100 condition type just above the condition type for VAT.

[prasanna_kumar4]

HI

Check the item level Analysis what is the key combination system is picked and based on that check the condition records

and also check on what is the base value for calculating the VAT

Check once again the Pricing procedure , Material Master & customer Master

Regards,

Prasanna