Header Freight condition should only attract Full Tax i.e. Tax classification '1'

[Former Member]

Hi Experts,

I have a scenario for German Sales and wondering if anyone has come across this.

I have created a manual Freight condition, marked as a group condition. In pricing I have materials attract 19% and 7% Tax so the Tax on Freight is calculated with both the 19% and 7% Tax. Germany only want to apply a 19% tax on Freight. How do I get this done? Any Alternative Calculation type I could use to overcome this?

Your help is much appreciated.

Thanks,

Sal

[Former Member]

Hi Sachin,

I've managed to get this working now.. not without impacts I must say..

1. Introduced new Z Tax condition and moved the Z freight below the MWST tax conditions in pricing.

2. Only maintained condition records for the new Z Tax condition at higher %

I was then able to produce Invoice with both the MWST tax and a separate ZMWS (tax for Freight).

This then caused a few issues because this introduced Tax classification in Customer master and Material master + I had to do a few more config to make sure the Freight doesn't get calculated during Returns and Credit Memo. - This too sorted.

My issue now is that when Rebate processing happens, the copy controls are taking over both the MWST and ZMWS.

I don't want the ZMWS to appear in rebate credit memo request (B1) and I can't see any copy controls in SAP between F2 Invoice and B1. Any idea how I can get this done?

[Former Member]

Can you look at using REQUIREMENTS (VOFM Routines) to Disable this condition based on Document Type ?

[Former Member]

I think the crux of the issue here is : being a group condition, when this header freight is being divided into its line items, based on the line item, the tax which is being applied is different.

I can think of a solution as below, please suggest if this is correct :

1. Make freight and its tax as Only Header conditions.

2. Make a new condition for Freight + Tax - this condition will be made a Group Condition

3. Now in the pricing, make sure that NO Tax is applied on the freight value as this particular value (coming down from Header will already have Tax added to it).

So the scenario will be like below:

Header : Freight = 100

               Tax @ 19% = 19

          Freight + Tax = 119 ---- This will be divided among the line items.

Line

1. Material A - Cost = 200

     Tax @ 19 %  = 38

     Value without freight = 238

     Freight = 119/2 (considering equal division between lines) = 59.5

     Total Value = 238+59.5 = 297.5

2. Material B - Cost = 230

     Tax @ 17% = 39.1

     Value without freight = 230+39.1 = 269.1

     Freight = 119/2 (considering equal division between lines) = 59.5

     Total Value = 269.1+59.5 = 328.6

This is what I can think of, please feel free to suggest and improve

[Former Member]

Hi Sachin,

On point 2. Make a new condition for Freight + Tax - this condition will be made a Group Condition, not sure how I can set that to a fixed 19%? Can you please elaborate. Thanks.

[Former Member]

Hi,

what I am saying is that you can define a new condition as Tax on freight at header level ( you can even add a routine for calculation to check the highest Tax %  from all items and apply it on freight)

a very simple method may be to apply the Tax rate on Document Type & Condition name (sales Org/dist channel / Doc Type / Condition Type Name) level.

or if required you can make it manual also.

[Lakshmipathi]

Let me know whether the same material is being taxed at different rate for the same customer or for some customers, it will differ.  For some customers, if it will differ, you can differentiate the tax classification of those customers based on which system will fetch the tax value accordingly.

G. Lakshmipathi

[Former Member]

Hi Lakshmipathi,

In this scenario, the same material won't be taxed at different rates. The materials either have 19% or 7%. Customer all have Full tax or no Tax (in which case, tax value wouldn't appear against the line).

[Shiva_Ram]

One of the option I see is maintaining Freight as separate material master and adding in order as line item. Do you see any issue with this option?

Regards,

[venu_ch8]

Dear

i presume it will work just try

Create separate Condition record for Germany and maintain Separate Tax

In Tax procedure TAXINN Maintain reliant Tax code

And Maintain in FV11 T.code

Thanks a lot

venu:)