issue in pricing (SD). both CST and VAT c.types are activating for out of state customer .

[Former Member]

hello experts

My Clint have small issue for particular sales order. Customer related  out of state means CST applicable but for him both CST and VAT are coming. I check out customer master data is correct. There is no change logs. One more point in pricing analysis condition type(JVIP value)(country, reason of plant,tax clas2 cust,tax cla 2 mat (in,10,0,1). But condition record is activated for this issue i.e(in,10,1,1) i.e 5.5%. kindly advice where to check and how to proceed further.

for further information please find the attachments

thanks in advance

regards

venkat

[jpfriends079 · Accepted solution]

You said

1. customer master data is correct.
2. pricing analysis condition type(JVIP value) tax clas2 cust = 0
3. In condition record,  tax clas2 cust = 1

So, what is the tax classification(tax clas2 cust) maintained for your SH(Ship-to Party) customer master?

It ought be tax clas2 cust = 1, to get a desired result.

Thanks & Regards, JP

[Former Member · Accepted solution]

Thanks for your reply.

In this order both sold to party and ship to party was same customer.

I think tax will be calculated based on sold to party only.

So in analysis it is showing as ‘0’ ,but how can it pickup that condition record had contained ‘1’.

Please advice any other areas I need to check.

Thanks!

[Lakshmipathi · Accepted solution]

System will determine whether a sales is to be considered as a CST or LST based on delivering plant's region and ship to party region.  If both are same, system will fetch LST and if it is different, then it will be CST.  Check in your case, how it is.  Also check ship to customer master tax classification.

G. Lakshmipathi

[jpfriends079 · Accepted solution]

FYI, as in standard, tax relevant partner is Ship-to Part, not Sold-to Party.

Now, if your customer master is maintain with proper tax classification(tax clas2 cust).

Then check "Alt.tax classific".getting determined in your Sales Order - Header - Billing Document Tab. If you have flexibility to change that is sales order the maintain tax clas2 cust = 1.

Further, if you find tax clas2 cust not equal to 1. Then there is fair chance that your tax classification is not maintain properly in customer master.in billing tab.

[kalyan_mokirala]

Hi Venu,

This can be achieved as follows.

Create a condition table with the fields Country, Region of plant, region of the ship-to/Customer (Obviously it will take ship-to for tax evaluation), Tax classification of customer and tax classification of material for VAT and CST condition types.This normally comes in Indian implementations.

Now maintain condition record as required. For example Plant is in Tamilnadu and customer is also in Tamilnadu Maintain Condition record for VAT condition type.

similarly If Plant is in Tamilnadu and Customer is in Pondicherry maintain condition record for CST condition type.