How to handle Dealer Invoices

[Former Member]

Hi,

Can any one explain me how to handle dealer invoices in a PO.

EX: Material Price : 20000 / NOS.

       But the duties are calculated on the manufacturer acessable value : 15000.

       BED (10%) on acessable value 15000 = 1500.

       AED (4%) on  acessable value 15000 = 600.

       CST (2%) on  [Material Price + BED + AED] = 442.

       Total PO price : 20000 + 1500 + 600 + 442 =22542.

Tax codes are there with BED 10%+AED4%+CST2%

I need to know in Tax procedure can we change the condition base values.

[former_member192897]

Maintain JMX1 with 75% and JMOP with 10% for Cenvatable / Maintain JMX2 with 75% and JMIP with 10% for Non Cenvatable case and check if this serves your requirement.

[Former Member]

Hi Ashok,

           For the above case it is fine.

           The Amount is not restricted to 75% alone we have many other combinations.

Suggest me,can we change the condition base value (as per manufacturer acessable value) for BED and AED Conditions and CST needs to be calculated on Net value + BED + AED.

Regards,

SAP_MM

[former_member192897]

Try to incorporate the new condition type in Pricing procedure for Excise base value similar to MRP value (for instance) and pass this to Base value for calculating Excise portion.

[Former Member]

Where to incorporate the new condition type in Tax procedure. The base value from MM pricing procedure i.e., netvalue of material is reflected to BASB condition in FI TAX procedure now do tell me how my assessable value to be included and from where?

[BijayKumarBarik]

Hi,

Refer a thread for details how handle the dealer invoice and calculate accordingly for your requirement.

Excise invoice capture | SCN

Regards,

Biju K

[Former Member]

Hi Bijay,

I agree with you,But this works only in case if the duties are inclusive ie included in Base Value but in this base the duties are exclusive (duties are not included in Base Value) duties need to be calculated on dealers accessable value.

Our Client has both the scenario we have provided solution for inclusive but we are stuck with Exclusive.

   Regards,

   Raj

[former_member192897]

You have to incorporate a new condition type in MM pricing and calculate the Excise portion on that amount as per your requirement. Insert one more condition type after your Gross price for your requirement.

[Former Member]

HI Raja,

You can refer the note -

1104456 - Use of MRP indicator for capturing excise duties from dealer

and its attachment for details about the process

Regards,
Anushya S

[former_member192897]

Hi Anushya S, This is not a Dealer purchase.

[Former Member]

Hi Anushya S, I agree with you if it is inclusive of duties on material price but here the duties are pass on exclusively.

For example 1: Inclusive of duties Material Price = 10000.

  In that excise BED = 1000 and AED = 500 say then we will raise PO for 10000 with a tax code  relevant for that i.e., CST / VAT to be calculated on 10000 in migo we can check the mrp indicator and split the values as per the invoice finally in MIRO as well.

Example 2 : Exclusive of duties Material Price = 10000.

here the excise duties BED = 1500 , AED = 500 which are pass on exclusively, finally my CST/VAT = 2%/5% is to be calculated on 12000. Now can you help me how to achieve this if i raise a PO for 10000.

Regards,

Raj

[Former Member]

Hi Ashok,

           I agree with you. But how to define that the excise values are to be calculated on the new condition type. Basically the net price will update using requirement 362 in Tax procedure and duties are also calculated on net only if i define a new condition type in MM procedure how to pass this value to the excise conditions still net price is same and CST/VAT should be calculated on (net price + excise duties).

Regards,

Raj

[former_member192897]

You better create new pricing procedure for these kind of purchases as this is entirely different from regular purchases. You have to insert a new condition type similar to gross price and have written one routine and assign it to the condition type as per your requirement.

[binoy_vargis1]

You can achieve it through routine in the pricing procedure. You can change the base value for calculation. Give the logic to your technical team. You can keep a seperate taxcode and seperate Condition type which will be useful in building the logic.

Regards

Binoy

[Former Member]

Thank you all.

My issue has been resolved.

Regards,

Raj.

[former_member192897]

Please mark the Right answer / Helpful answer(s) and share the solution you have opted for your requirement. This will be helpful for other team members.

[Former Member]

Hi,

I achieve this by maintaining the conditions 1. JEXC , JAED in PO which overwrites the conditions JMOP and JAOP in FI tax Procedure.

So that in MIGO what ever the values calculated by tax code are changed and the Manual conditions are updated.

Regards,

Raj

[former_member192897]

I dont understand how the AED condition types resolves your issue? If AED is applicable then only you have to maintain the Condition records, else not required.

[Former Member]

My requirement is exclusive of duties on base. So tax codes created by us are not satisfied the requirement because the excise values are calculating on the accessible value of the vendor provided not on base by maintaining the Manual excise conditions they overwrite the duties calculated on actual tax code.

Regards,

Raj.