Condition for Octroi SD pricing

[Former Member]

Hello everyone

I need to add a condition type for octroi in the pricing procedure. Please could anyone guide me what will be the base for octroi calculation.

The requirement from the user is that the TAX needs to be calculated on the octroi amount

Please guide me.

Best Regards,

Anand

[Lakshmipathi · Accepted solution]

First check with the Business Finance as to how they want to capture the Octroi.  Next, ask your FI consultant to create a new Account Key which should be assigned in your pricing procedure against the condition type.  Also the G/L account needs to be assigned in VKOA. 

Also on your comment

The requirement from the user is that the TAX needs to be calculated on the octroi amount

it is not that Octroi should be calculated after tax but on the gross value.  This means, this condition type should be the last step in your pricing procedure.

G. Lakshmipathi

[Former Member · Accepted solution]

Thanks Lakshmi,

On the Gross value you mean before any deductions are made & also the Excise duty & other taxes applicable should be left utouched right?

Kindly respond.

best Regards,

Anand

[Lakshmipathi · Accepted solution]

Yes as I already indicated, Octroi should be levied on the gross value of the invoice but in some places, it will vary and depends on Business discretion.  So first check with the Business Finance how they want to charge Octroi.  Based on this, you can do configuration

G. Lakshmipathi