Canada tax: Need to change QST calculation logic

[Former Member]

Hello experts,

We are working on an scenario where there is new QST change in quebec canada from April 1 2013,Need your suggestion

We use taxware to calculate canadian taxes .I am not sure if we need to change something in our pricing procedure as we are getting results from taxware

currently The tax condition types: XR1 is GST, whereas XR2 is QST.

Calculation Prior to 1/1/13:

GST 5% $605.49  ($12,109.75 x 5%)

QST 9.975%  $1,268.35 ($12,109.75 + GST $605.49) x 9.975%

Total $ 13,983.59

Calculation effective 1/1/13:

GST 5% $605.49  ($12,109.75 x 5%)

QST 9.975%  $1,207.95  ($12,109.75  x 9.975%)

Total $ 13,923.19

SAP is calculating QST using the old format.

Please suggest the changes i need to do in pricing procedure to not include GST while calculating QST.

Thanks in Advance.

Regards

Ashok

[Lakshmipathi · Accepted solution]

You have to have a pricing procedure in such a way that QST condition type should be placed above GST condition type.  Alternatively, in your existing procedure, insert one more condition type with 100% discount between GST and QST, which should copy the GST.  After this discount condition type, have one step as net value which is nothing but total value less GST.  The next step number should be your QST which should calculate from this value.

G. Lakshmipathi

[Former Member · Accepted solution]

Hi Lakshmipathi,

Thanks for your reply.

Please look at the pricing procedure below.

Step  Counter  C.Type    Description                From    To     Alt.Calc.Type

700        0                      Discounted Price           0        0
930        0         CTXJ    Tax Jurisdict.Code       700     0           300
931        0         XR1      Tax Jur Code Level 1   700   700         301
932        0         XR2      Tax Jur Code Level 2   700   700         302

Here base value for calculating tax is at step 700 which is discounted price.
For both GST(XR1) and QST(XR2) from and to values are 700 and 700. So system should take same base value for both as per my understanding. But for XR2 system is taking base value as sum of value at 700 and XR1.

My requirement is for both XR1 and XR2 same base value should flow. Please check the above pricing procedure and suggest me the changes required.

Thanks & Regards
Ashok

[Lakshmipathi · Accepted solution]

In that case, compare the coding difference between 301 & 302 assigned to those two condition types.

G. Lakshmipathi

[former_member212707 · Accepted solution]

Ashok,

Apart from checking the calculation routines as suggested above,

Please also see if any custom base value routine is assigned to the condition type XR2 (QST) in the pricing procedure. In the past , we have worked on similar situations for QST where the base value on which the tax % procured from the third party tax engine was a custom value ( Net value + GST).

We had a custom routine assigned to the condition type which had to be modified based on the aforementioned change in the Canadian tax system.

Thanks,

Ravin