Brilliant and gold tax calculation

[Former Member]

Hi everyone,

I have a question about tax calculation. Our client sells brilliant. Their some products have brilliant and gold. There is no calculate for gold in Turkey. I will try to explain our scenario as below:

For example there is a product which has 1000 USD sales price. and this product involve 3,5 gr. gold. karat of this gold is 14. Full gold coin is 24. Thats why, they calculate 14/24 = 0,585. And they have gold exchange rate also. Let's say 100 for exchange rate.

Formula is : 3,5 * 0,585 * 100  = 204,75

Product sales price : 1000 USD

1000 - 204,75 = 795,25

amount base = 795,25 / 1,18 = 673,9407

tax  = 121,3093

How to calculate this tax in sap? Can anyone help me about this issue?

Thank you very much

Regards

[sez41]

Kah,

From what you've stated, 1000 USD sales price is inclusive of tax, right?

What you drew seems like can be accomplished by using calculation base formulaes, but I wonder if there can be a better way. Technically you can do the exact same calculation in the formulae, and calculate the tax amount by dividing the tax amount to tax applicable amount you've found. Then you'll need to substract tax amount from 1000 USD to find the base price, which at the very least doesn't look very promising. This can be trickier than it seems and cause more problems than it solves. Is there a reason why your client wouldn't sell their products with base price + tax formulation? They can always list the prices to their customers inclusive of sales tax, but not setting a list base price does not look like best practice at all.

[Former Member]

Thanks for reply Kıvanç

SD consultant will solve this issue. I will post the soution when we did it.

Regards

[phanikumar_v3]

Dear Bilgin

Is there a reason why your client wouldn't sell their products with base price + tax formulation? They can always list the prices to their customers inclusive of sales tax, but not setting a list base price does not look like best practice at all.

Normally in some industries (Cements,Chemicals etc..) MRP will be fixed by Governments(In India)-So all the discounts,Taxes,surcharges etc..should not cross this Fixed MRP.

Also standard SAP will be giving the option of doing pricing with procedures called Standard pricing & Reverse pricing..so some clients will be using this process of reverse pricing..

Phanikumar

[Lakshmipathi]

Once you arrived the base price, then the tax would be calculated based on that as I presume, your tax condition type is set to Percent.  Ideally, you should have posted this query in sales forum.

G. Lakshmipathi

[Former Member]

Could anyone help me??