cancel
Showing results for 
Search instead for 
Did you mean: 

How to create a Price including Taxes

vijay_srivasttava
Participant
0 Kudos

Hi,

I want to create a price which includes all Taxes like VAT, CST etc. The price needs to be a gross price which means it should not have breakups.

So if I sell the product or there is a return order, then the prices should be gross.

JV for Return Sales-

Warranties A/c Dr. (with gross amount including all taxes)

Dealer/Customer Cr. (with gross amount including all taxes)

Please suggest.

Accepted Solutions (0)

Answers (5)

Answers (5)

jignesh_mehta3
Active Contributor
0 Kudos

Hello Vijay,

I believe the requirement is to post the gross values in Gl Account & Taxes should not be separately posted.

If yes, then insert a Condition in Pricing procedure after all the Condtions. The value of this condition will be sum of all the conditions that lead to final price. Assign a Account key to this new Condition.

Thats it. System will only post the only the gross values to the accounts.

But what is the business reason for not posting Taxes separately?

Thanks,

Jignesh Mehta

vijay_srivasttava
Participant
0 Kudos

The reason is that, the taxes are not applicable to this kind of sales since this a not actually sales. We are considering this as sales due to some process requirement. But it is possible only when we follow the normal SD-FI process. But I am getting Tax separately posted which should not be there. We are paying the taxes but it is an expense for us and not Output Tax which will be a payable/liability.

Former Member
0 Kudos

vijay,

can you please explain the process in detail, it will clarify us to help you.

vijay_srivasttava
Participant
0 Kudos

We send spare parts to dealers. These spare parts are required for repairs when any tractor under warranty is coming back for repair. After the spare parts is replaced the dealer sends us the damage item.

How we treat the process in system?

1. We show Warranty sales when we send the spare parts to Dealers.

Entry:

Dealer A/C Dr

Warranty Sales Cr

I need to show here the excise duty, VAT etc. separately. VAT/CST should be charged at full rate of Tax @5%.

2. Dealer returns us the damage item.

Warranty A/C (expense) Dr.

Dealer A/C Cr.

During this time, the system should show any taxes and excise should not show separately. The price should show inclusive of all taxes.

3. Items which are not returned.

We keep those items into sales and show that much due from dealer which gets adjusted in future payments.

Now, you must have understood that this is not a sale, but we are ready to pay the taxes. We don't want to show the taxes separately when we are getting the return from dealers.

Now, I am following the steps:

Warranty Sales:

VA01-Create Warranty Sales with separate order type

VL01N

VF01

Warranty Sales Return:

IW51- Raise Service Notification

IW52- Create Return Warranty Sales Order

VL01N- PGR with delivery type as LR

VF01- Billing Type-Warranty Returns

VF02- Release to Accounting

During Release to Accounting, I don't want the system to show the VAT/Excise separately. Instead it should show the price including all taxes/excise.

I need to know how to configure the price in both the scenarios, so that I can show the breakup price in sales and price inclusive of all taxes in sales return.

Former Member
0 Kudos

HI Vijay,

According to CENTRAL EXCISE LAWS,Excise duty is levied if goods are marketable. Actual sale is not relevant. Therefore, goods, which are given for free replacement during warranty period, are also liable for excise duty.

Accounting for excise duties is Mandatory.

While sending the material to dealer who are posting the excise value to accounting. and for return from the dealer create a return order with reference and it will automatically reverse the excise duties and VAT as per the returned quantity.( no need to pay excise duty for the material).

IF you will to pay the excise duties for the returned material also, kindly follow the steps:

1. Create a credit/debit memo without reference.

2.Use a header condition type HM00 in your pricing procedure and manually key in the total price.make sure the excise condition types are not maintained in the pricing procedure.

IF the customer keeps the material or not return the material within the time limit, then it is a regular sale process(according to your business scenario).

Vijay VAT is applicable for STATE Government and excise is applicable for CENTRAL Government, you can't combine both.

i don't understand what is the problem of accounting the excise duties for return orders.

Karthick.R

R. Karthick.

Former Member
0 Kudos

HI Vijay,

Use header condition type HM00.

R.karthick.

eduardo_hinojosa
Active Contributor
0 Kudos

Hi

Set the conditions ZPB1, MWSI and ZPN1 (gross, VAT and net).

In V/06, check for MWSI these fields

and for net value check it cames from formula

in V/08, set the formula 25 for net, more or less as this

Hope this helps you

Regards

Eduardo

Message was edited by: Eduardo Hinojosa

former_member182378
Active Contributor
0 Kudos

Vijay,

This would depend upon how you structure you pricing procedure!

At the last (step) you can have "Gross Price" which shall include all the condition types you want to "sum" (take into consideration).

In field SubTotal put 2 and test. Create sales order.

Question - In the sales order, at item level, what do you want to populate in the field Tax?

rahul_vishwakarma2
Contributor
0 Kudos

Hi Friend,

  As you want the price that include the tax also. But just i want to confirm that this is for material i.e. tax for all material is same or different.

  Not sure but check this link and confirm : http://scn.sap.com/thread/1839594

Regards,

Kundan