on 02-26-2014 7:23 PM
Here is the scenario:
In our Business, there is a process to give a Free item with mostly all the products sold online. In SAP, we will create regular sales order with 1 line item as TAN and other item category as TANN.
The Business wants to calculate Use tax on the 2nd line item where Net value=0. As we use the same Pricing procedure, we cannot charge different taxes based on line item.
The other option was to send the cost details to Vertex, so that they can store it in Vertex and use for Tax calculations. The technical issue is that whenever the Net value=0, Vertex RFC is not called.
We have proposed to create a report in SAP which will tell them the order details with Free items but this is not acceptable to Business.
Has anyone worked on such scenario where Use tax is calculated on the Sales side for Free of charge items.
i will check these Notes and reply if it worked for us. thanks.
Our client works in CPG industry and it is very common (50% of cases) where they give a Free item to a Customer based on his spending. These free items are regular finished goods which are sold to other customers.
This Use tax is not charged to the Customer but absorbed for tax reporting and tax payments. we were able to design it for full free of charge orders but whenever we are selling this as part of regular sales along with regular goods, we are not able to calculate it.
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i tried checking the notes but most of these work when we have a total FOC order type where all items are Free. here is the solution we have designed now:
we added a new condition type for use tax. the purpose of this cond type is just to call vertex for the line item. we are passing the cost value to vertex in user exit now and all calculations will happen in vertex and wont flow back into SAP.
The basic concept in tax is seller can levy the appropriate tax on the items which they are billing. This being the case, I am not sure, why for a free of charge item, tax should be levied. Can you please share in which Business process, this is being followed. Needless to mention, if at all you want to achieve this requirement, have a separate condition type for this free goods, set as statistical, so that, only tax portion would be posted to FI.
G. Lakshmipathi
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Hello Nimit,
If TAX is getting calculated in all of your Free of Charge Items then why don't you make the TANN item category as relevant for billing and create a condition record for that then Free of Charge Items will be visible in the VF01 billing screen also and only TAX amount will appear.
Hope this will Help.
Regards
AG.
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Hi
See also SAP Note 102852 - AR:SD: VAT perception and customer exemption as a template
I hope this helps you
Regards
Eduardo
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Hi,
check oss notes 34526 and 1233225
Regards,
JM
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Don't use TANN, use a nornal pricing procedure where the discount is applied after tax is calculated.
Same scenario as Italy, free goods are charged tax.
One question isn't use tax on the AP side of the business?
Regards
Waza
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