Duty : Absorbing any tax increase to customers during a promotion

[Former Member]

Would like some help on this question. If a the company is offering a promotion on a certain product to a number of its customers, and during this promotion period a ‘duty/tax’ change occurs. The company does not want these promotional customers price to change, but instead the company wishes to absorb the increase themselves and allow the customer to continue to be invoiced at the agreed pre -duty increase price.

How would I go about setting this up and is this possible within SAP?

[Former Member]

Hi,

You can use alternate tax classification to determine differant tax code which has no rates, this is applicable when there is no tax needs to be paid.

If you want to pay the taxes also and not debit the customer for the taxes then you will have to use the Discount condition only. The Discount condition should be at the end and the base for this should be the taxes.

Regards,

Murali

[Former Member]

Hmmm James well for this i guess this could be possible by creating a New condition record which could absorb the change in Tax/Duty .

i fell during the promotional period you can have two records one for the old tax, and one for new .. and give the discount for the new one in the pricing Procedure which will in turn not be absorbed by customer since it would come in the form of discount, and values will go to the respective cost center the way finance wants.

Hope this helps

Cheers