VAT Calculation based on Formula

[Former Member]

Hi

We have a requirement to calculate the VAT based on the following formula

1. If Sales = X, Surcharge = Y%, VAT = Z%
2. VAT = (X*Z%) / {(1- (Y%*Z*)}

I tried calculating VAT based on the amount 1000 , and came with some percentages for vA and created condition records for the same, the VAT is coming to 6.043%. The customer wants the VAT to be 6.04285 , which SAP doesn't support and requested whether VAT can be calculated as above.

I have never done this configuration before, I have an idea that the VAT can be calculated in this way using routine.

Can any one please throw some light on routines ? Or is there any simpler way to config this.

Thanks,

Vaishnavi

[eduardo_hinojosa · Accepted solution]

Hi

Check the pricing procedure RVXBRA for Brazil as a template (here you have a lot of VOFM). Your question is related with rounding, then please, see SAP Note 80183 - Rounding and related notes. Other useful pricing procedure is RVAAAR (for Argentina) where the tax is solved in two steps. The first according conditions as a statistical condition, in the second using the first and with formulas calculating it again.

I hope this helps you

Regards

Eduardo

[Former Member · Accepted solution]

Hi Eduardo

Thanks a lot, your answer is very helpful. Iam referring to all the routines you have mentioned. Will post the solution once i resolve the issue.

Thanks,

Vaishnavi

[Former Member · Accepted solution]

Hi Eduardo

Thanks a lot for the answer, we wrote a routine in VOFM and called it in the pricing procedure. It worked perfectly fine .

Thanks,

Vaishnavi

[Former Member]

Hi ,

can you brief the requirment with figures instead of letters for my better understanding..

Raneesh

[Former Member]

Hi Raneesh

Thanks for your reply. This was the original requirement from the customer.

Net sales
amount                                   
RMB10,000

Gross-up sales amount= Net Sales/
(1-6%*12%)= 10,072.52 (Note :
including all surcharges)

VAT Amount= (Net Sales amount /
(1-6%*12%))*6%= 10000*6%/ (1-0.0072)= RMB 604.35

I have arrived with the following logic to achieve the same

VAT = Sales price * 6% div 0.9928 = 6.0435

Surcharge = 12% of VAT = 0.725

Surcharge is in sales price, Revenue = Sales price + surcharge

I have maintained condition records for VAT = 6.043 % and surcharge for 0.725% and created a pricing procedure. this works perfectly fine for the sales price 1000 .

When the sales price is 30500 , this is the break up

Sales price 30500

Surcharge 0.725 % = 2211.25

VAT 6.043 % = 18431.15

But the customer requirement is  this

Sales price 30500

Surcharge 0.7252% = 2211.93

VAT 6.0435 % = 18432.72%

They are not willing to compromise on decimals, and i cannot maintain more than 3 decimal characters in condition record.

Is it possible to calculate the VAT based on the formula i have explained in the first Question.

Appreciate your help .

Thanks,

Vaishnavi

Sales	305,000.00
VAT	18,432.72
SC	2,211.93
Invoice value	325,644.64

[Former Member]

Hi Vaishnavi,

If you would like to increase Decimal in Condition record than try this link.

http://scn.sap.com/thread/3148679

http://scn.sap.com/message/9160162

Thanks,

Sandeep Singh Chauhan

[Lakshmipathi]

Since VAT will always be in percent, you cannot have condition record to suit your requirement.  You need to go with adding this logic in a routine through VOFM

G. Lakshmipathi