Free of Charge Samples

[Former Member]

Hello

We have a scenario where we need to send Free of charge Samples to our customers.

But rule in our country startes that you have to pay VAT to government on even samples sent.

What my client require is this VAT will be paid by the company itself and should not be charged to customers account.

How can i design this scenario. ...please advise...

Regards

Sanjeev

[former_member211556]

Hi,

Let me know if this requirement is for any of the south east asian countries. We had one such requirement where we created a new item category - Copying TANN with pricing - B and Billing relevance - A. In the pricing procedure, have the net price calculated, net off it with R100 Discount, calculate the tax with the net price as the base. This way, you would have the tax calculated and invoiced but the customer will not bear any tax.

-Vasanth

[Former Member]

Dear Vasanth

Yes the requirement is for country Indonesia.

Can you please elaborate and provide e screenshot of pricing procedure please.

Regards

Sanjeev

[former_member211556]

Hi Sanjeev,

With regards to pricing, I did this as below.

Step 10 - PR00

Step 20 - K007

Step 30 - Net Price From10- To 20

Step 40 - R100

Step 50 - MWST    From 30

Hope this helps, not able to provide you the screenshot as I did this for my prev organization and I dont have access to that system.

Regards

Vasanth

[Lakshmipathi]

In standard pricing procedure, for VAT condition type, Account Keys would be assigned under the tab "Account Key".  Instead, assign it under the tab "Accruals" so that the value would not be debited to customer account but would be posted as an accrual amount in FI for which, the Business Finance can make VAT payment to statutory authorities.  Assign the required accrual G/L Account in OB40 for those Account Keys assigned in Pricing Procedure.

G. Lakshmipathi

[jignesh_mehta3]

Hello Sanjeev,

Normally for Free of Charge Samples we do not create Invoice, because the Sales Promotion Expence GL Acount is hit directly from Delivery.

But in your case if you are creating Invoice for Free of Charge Samples, then suggest you to place 100% Discount Condition - R100 after the Net Price & ensure that full Invoice value is nullified by this R100 Condition.

This will ensure that none of the Invoice price components are charged to Customer.

Thanks,

Jignesh Mehta

[Former Member]

Dear Jignesh

thanks fror your reply.

My pricing procedure is like this :

PR00      100

MWST      10

Total        110

R100        110

Net Value comming in Order is -10 and tax as 10. net Value in Order should come as 0 and not -10. Please advise...

Regards

Sanjeev  

[jignesh_mehta3]

Helo Sanjeev,

In your Free Samples Procedure you need to assign Account Keys only for Total & R100 Conditions. Rest all conditions can be made stastical.

This will ensure that you are maintaining GL Account only for for these two Accounts.

Thanks,

Jignesh Mehta

[Former Member]

Helo

if i make PR00 as statistical, MWST will not be calculated. Also i want to post MWST in G/L account sicne we will be paying that to Government.

Regards

SAnjeev

[Former Member]

Helo

if i make PR00 as statistical, MWST will not be calculated. Also i want to post MWST in G/L account sicne we will be paying that to Government.

Regards

SAnjeev

[former_member184065]

Hi,

Please Create as below,

1. Create Sales Order Type -FD ( Item Category KLN-not relevant to Price and Billing relevance "D")

2. Delivery  Type - LF

3. Pro-Foma Billing - F5

4. Assing your Delivery type to Billing Type in Path: IMG- Log General- Tax on goods movement-India- Business Transactions - Outgoing Excise Invoice - Assign BIlling type to Delivery type.

5. J1IIN.

Thanks,

Naren

[Former Member]

in sample process we dont charge to customers,but we have to pay both VAT and EXCISE DUTIES

this is regular process in this do order-delivery-proforma-ex-invoice.

in the item cat keep billig relevane-D.

regards

Raj