sap sd - Tax Calculation Based on Base Price

[Former Member]

         if base price is above  10000/-  Eur, tax should be 8%, if base price is below 10000/- Eur tax should be 5%, customer and material taxable.

Is it possible through standard configuration. Pls Help Out!

[former_member205178]

Hi Karka,

Just curios! Did you get any solution for this ?

Thanks.

[former_member205178]

Hi All,

Here are my points on this post :

1) Requirement Itself:

It goes back to the basic requirement. There seems to be some flaw. As I said in my earlier responses in this post never seen this kind of requirement and it does not make any business sense from a Tax and Legal Perspective.

It is like penalizing if a Material is above some Price then Tax is more. Well in some weird philosophical way, it looks justified by in a more practical way it is not. Same Material is taxed 2 ways purely based on value.

From this perspective, it makes sense the Tax Base being the Base Price;

2) Group Condition Setting:

Srinu & Santosh:

In the testing as pointed out the Group Condition has to be removed for it to work properly, if at all. This is a scenario we are testing not what it actually should be.

As you must be aware, the Group Condition is based in this case on whether the Tax is calculated based on an individual material or a Material Group;

3) Karka :

The calculation of Tax whether it is based on

• Base Price OR
• Net Value - Cash Discount

can be controlled through From and To Steps and Sub Totals.

With all the other things, other post contributors have done, I am sure you will be able to do this part.

4) Ju:

Your point on Tax Code Issue should not arise as only one Tax Code is assigned to a single line of Tax Condition Record. 

Normally different Line Items could have different Tax Codes. I always look at  in theory;

5) Overall:

My curiosity in this post was based on the fact, if this is a real requirement or not and in the process, discovering the feature of Scales being used differently than what I did in the past, is a bonus.

For me personally, the requirement looks uncommon, or may be things are changing

Enjoyed the discussion everyone.

I log off from this discussion.

Thanks.

[Former Member]

HI All

Thanks for working on this Requirement

I found the same requirement Here SCN,

They r also confused weather to use scales in MWST or not.

Please see the below thread

http://scn.sap.com/thread/3373969

Karka krishna

[Former Member]

Hi Krishna ,

Scale can help you .Maintain quantity scale and try to maintain the record .It should work .Hope scale logic applies to all the materials available for Sale since most of the company uses single/common condition type to determine Tax .

I

Regards

Santosh Verma

[former_member205178]

Hi Santosh,

My two cents here.

Good that you have articulated the likely solution more clearly with a picture, but if you notice, Ramakrishna has already given the same advice. 

From what has been explained so far by Karka, this is a case of Tax Condition Type behaving differently based on another Condition Type [value] of Base Price.

My interest in this post, is more from an angle of such Taxation. Having been exposed to all kinds of International Taxation this seems unique. What are these requirements and which country + Product these requirements pertain to. 

Hopefully Karka will give more requirements.

Thanks.

[Former Member]

Hi I

This is for One of my European  Client.. This is not a legal violation also.

I Think scales will not work for this requirement..  As ramakrishna said a price requirement for cond type will help.

Or can u please help on how to use scales for percentage

for freight charges i did with scales for same requirement ( not percentage - Fixed Amt i did )

Regards

Krishna

[Former Member]

Hi Dee Sea

Thank you for your two cents appreciated .

Hi Krishna

Please find the Screen shot below in sequence from 1-5 .Kindly do test and update if it works fine .I  am yet to set my decimals in default setting since I  don't have the authorisation for su01 .Apologies ...please manage on that front .:)

    Pricing routine is always an option but I think you can manage with below set up .    I also noticed your requirement is value based not quantity based apologies for above screen shot .

Regards

Santosh Verma

[former_member205178]

Hi Santosh,

Thanks for your inputs. Seems encouraging. I am hopeful it works for all scenarios.

Since you are proving the concept, could you try the following :

Scenario # 1)

Quantity - 33

Base Price - 2345

Scenario # 2)

Quantity - 33

Base Price - 15679

Should be a quick two minute thing for you. Apologies, if it is too much to ask.

Another thing is that, the scales might be better maintained as Ascending in the customizing and the condition record could be as follows. I think this is the true representation of what Karka is looking for :

___________________________

Type              Amount             %

___________________________

From                1                     5 %

From                10000             8 %

___________________________

Happy that Karka might find a simple solution. Hopefully a lesson learnt here .

Thanks.

[Former Member]

Hi Dea sea

You are correct . Below should be the logic .

Type              Amount             %

___________________________

From                1                     5 %

From                10000             8 %

Its a great learning for me too .I have never worked on Production server with Scaling requirement in any of the country Tax requirement yet.

  This is a great learning for me too .Thank you Karka for sharing this requirement .Since this is business requirement this can be achieved by  scaling in condition record and I see system is supporting it . As stated above this has to be tested on multiple test cased before it is moved to Production .

Regards

Santosh Verma

[srinu_s1]

Santosh,

Thanks for working on this requirement because of you and Dee sea even I tried testing on this.

Yes even I do agree with Dea sea approach because the op was looking if the base price is more than 10000EUR tax should be 8% and if less 10000 it should be 5% so in this case Dea sea approach is correct.

However,  in this case if the line item is one then it is working fine as per OP requirement. But it is not working when there are multiple line items

Example. As Deasea mentioned have taken two line items 1 with 15000 and another one with 2300 base price since both line items value is 17300EUR hence system is taking 8% for both line items

Where's in your case it's working only when the base price 9999 its giving 8% even 1eur less than 9999 system taking 0% as tax value and for multiple items also not working.

In my testing I don't think so it's working fine all the cases.

Dea sea and Santosh please test from your end if it's working fine all the cases. .thanks

Srinu.

Message was edited by: Srinu S

[Former Member]

As far as I know, only one tax code can assign , so when doing billing, the billing document will get stuck  due to the tax code and percentage not matching.

[Former Member]

Hi Dee Sea

Thanks for working on this

But My requirement is for tax cond base value should be Base Price..

But in the system Tax actually calculates on Net Value - Cash Disc

Also Im not sure we can  scales in tax conditions or not.

Regards

Karka

[Former Member]

Hi Srinu

Item behavior can be controlled if we remove check mark from Group Condition. Try executing the transaction after you remove the check box.

Z Would be an Option for Karka along with separate table which will have Tax code combination and Tax % . As Ju said system will surely throw an error at the time of release when Tax code % are not matching .Routine will overwrite the correct Tax amount with Correct Tax code after checking the Base Price .

More over scaling will take Net value amount not the base Price as Karka looking for .I feel he has limited option after knowing the requirement in detail .

  Thank you guys for all good learning.

Regards

Santosh Verma

[former_member205178]

Hi,

Could you define the business requirements more in detail here ? Never heard such tiered tax requirements based on the Base Amount.

Which country and Industry/Product this type of Tax Rate is being applied to ?

Thanks.

[Former Member]

I think you need to create routine and assign against your tax condition, write your above logic.

Or you may do with scale in condition type, not sure whether tax condition can be configured with scales.

Regards