Why we have to use tax and pricing condition types in pricing procedure

[lakshmikanthc2]

Hi

My doubt is we are using both tax and pricing condition types in one pricing procedure.

Here take one example : JFACT is the pricing procedure, in this we included tax condition types along with pricing condition types, why?

What is the link we are giving here?

Thank you

regards

lakki

[Former Member · Accepted solution]

Hi,

MM comes with two ways of determining excise duties (and sales taxes) on input materials: formula-based excise determination and condition-based excise determination.

The system calculates excise duties using a tax procedure.

SD also supports formula-based and condition-based excise determination, but in SD, the system calculates the taxes using a pricing procedure, not the tax procedure.

Incoming excise invoice configuration is developed by MM team with tax procedure.

Outgoing excise invoice configuration is developed by SD team with pricing procedure.

regards,

Siddharth.

Edited by: SD on Mar 28, 2008 6:30 AM

[lakshmikanthc2 · Accepted solution]

Hello siddharth

Here iam using formala based tax procedure, ok

in pricing procedures(like JFACT,JSTRO,JDEPO etc) we are using tax and pricing procedures for BED, CESS, why?

regards

lakki

[Former Member · Accepted solution]

Hi,

These different procedures are use for different kinds of sales.

When you do any sales transaction different kind of execise duty needs to be paid to the government.

Many other countires you have only one kind of output tax (MWST).

In India we have several form of taxes with different calculation rates based on the commodities. You have Basic Excise duty, additional excise duty, cess ..etc...

Prase

[lakshmikanthc2]

Hi to all

Why we have to use both tax and pricing condition types in pricing procedures (like factory,depo,stock transfer, export procedures).

Here with the Tax code, we can give the relation b/w tax and pricing procdure condition types. Ok, what would be the reason for using two types of cond.types in pricing procedure.

Thank you

regards

Lakki