How to add Markup and withholding tax to pricing condition

[former_member431487]

Hello SAP gurus,

I have one query. Our client has a requirement that they want markup to be added to the price in one scenario and withholding tax to be added in another scenario. I understand that we will need to create 2 new condition types for this. Can someone please explain how exactly this has to be added in pricing procedure ( I mean how exactly to calculate markup and withholding tax based on price)

[sidi_reghioui · Accepted solution]

Hi, I guess without having a clear explanation about your requirement, we could only guess.

You will need two condition types, one for the markup (surcharge) and one for the Withholding tax (tax).

Your ABAP team will need to create a requirement for each one based on the criteria like price and any other field relevant to apply one or the other condition type.

like if Base price>= 1000 EUR the Withholding tax applies, if < 1000 EUR then markup applies

please provide more info

cheers

Sidi

[former_member431487]

Thanks Sai Krishna. Your post certainly helped me to get a better understanding. Plz give your expert opinion on one more issue. Actually the client requirement is that they have 2 cost centers in 2 company codes. Now suppose they have $50 in 1st cost center and $50 in 2nd cost center. They want that this $100 (both cost centers combined) should be billed to 3 customers based on certain conditions. We can figure out the conditions later but at this stage I want to know that is there a way to this by creating some variable?

[former_member431487]

Thanks everybody for such quick and helpful response and my apologies for giving insufficient information. Actually the requirement is that client wants to add certain amount of markup if sales is made to customers in a particular country and no markup if sales is made to some other country. So can this be done by adding a condition type for markup based on ship to country? What should be account determination key for this?

Also can anybody please throw some light on withholding tax. Is it a kind of discount? Should account determination key for it be ERS?

[former_member184080]

Hi Karan,

I guess your mixing 2 different requirements. Withholding tax is completely a different subject, which is generally taken care by FI consultant.

Please refer below SAP help.

http://help.sap.com/saphelp_46c/helpdata/en/2d/936b3ae886616ae10000000a114084/content.htm

http://scn.sap.com/community/erp/financials/blog/2012/04/11/rules-for-withholding-tax-calculation

Now, coming to your question, if you want to have certain markups for specific customers you can make use of condition type with different access sequence.

Say for e.g. the number of customers who fall under this criteria are less then you can use customer as one of the key combinations in your access.

But, the numbers are more and to avoid user maintenance, you can make use of some fields in customer masters, like, customer groups.

Now, which account it should post has to be decided by your client, so have discussion with client along with FI consultant and maintain account key and account determination accordingly.

Please let me know if you need any further details.

Regards, Sai krishna.

[former_member184080]

Hi Karan,

Could you please explain a bit about the parameter as to how will you determine whether that particular scenario requires Markup or With holding tax?

As suggested by Santosh, you can very well achieve this by using 2 different condition types, one for mark-up and another for Withholding tax. But, you need to have clear differentiation as to how you will calculate them.

Regards, Sai Krishna.

[former_member186385]

Hi,

Create new Condition type for Mark up and maintain the condition record

For the scenario you want the Mark up the condition record should be 15% ( for example) and for the rest maintain the condition record as 0%

similarly withholding tax can also be controlled using the condition record assuming all the relevant FI setting would have done

from SD persective condition record can control

hope it is clear

regards,

santosh