Manual excise not considered for VAT and surcharge calculation - CIN

[Vinod_Pushpanat]

Dear All,

We have problem in VAT and Surcharge Calculation in case of Dealer Invoice.

During creation of purchase order, the customer is not aware actual CENVAT amount as well as VAT/CST. Hence, creates a PO with dummy tax code.

While posting MIGO, the user manually updates the excise amount which is calculated based on basic price confirmed by the dealer.

While posting MIRO by using a valid tax code, system is posting all the excise amounts correctly but VAT and Surcharge are incorrect.

The customer has tried to manually adjust the tax amount by removing the "Calculate Tax" check box but gets the error message “the tax amount must not be greater than the tax base".

We find that, VAT calculation does not consider the manually posted excise values. Instead the VAT amount gets calculated based on the percentages maintained in condition records.
 
Subsequently, the surcharge gets calculated on VAT amount including the difference of actual CENVAT amount and the Manually posted CENVAT.
 
Test Example:

	MANUAL Entry in MIGO/J1IEX (INR)	%	ACTUAL CENVAT Calculation by SAP	%	Difference
Material value	55630		55630
BED	7582.8		6675.6	12%	907.20
SEC	151.66	2%	133.5	2%	18.15
EC	75.83	1%	66.8	1%	9.07
Total Amount	63440.29		62505.9		934.42
VAT	2537.6*	4%	2500.23	4%
Surcharge	126.9*	5%	171.73	5%

(*- as required) (eg: VAT 2500.23 = 4% of 62505.9 and Surcharge 171.73 = (2500.23+934.42)*5%)

What could be the reason and how can this be corrected?

Thanks,

Vinod P

[former_member186100]

which version you are on and what tax procedure you are using , if your implementation is older  then 2 years , please check for program error  SAP notes on sap support site. In past couple of years SAP has release tons of program corrections and improvements.

[former_member187965]

Hi Vinod,

First check "GR Based IV" indicator in PO. It must be activated in case of "Dealer" PO.

Second, go to, SPRO - Logistics General - Tax on goods movements - India - Basic Settings - Determination of excise duty - Condition based excise determination - Classify condition types

Here maintain the CST and VAT condition type as below,

TAXINN - JVRD - RMDAPVAT A/P VAT RM Deductible

TAXINN - JVCS - CSTAPND A/P CST Non Deductible

TAXINN - Surcharge condition type - APLST A/P Local Sales tax

Also, in dealer case, maintain JMOP (BED) condition type percentage as "zero" and Ecess, SEcess condition percentages as 2% and 1% respectively. Ensure you have to maintain the "Set-off" condition types with percentage as 100% in the tax code.

After maintaining all these, check the scenario again.