Tax calculation on different freight condition types

[former_member232979]

Hi,

I have defined two freight condition types, getting inventorised both but value of one should not be added to taxable value. For that I have put subtotal as 6 for one condition type.

Let me put it like this -

ZFR1 - No accrual flag, Condition category Blank - To be inventriosed, no MIRO posting required. Value should not be added to taxable value-Subtotal 6.

ZFR2 - Accrual flag, To be inventriosed- MIRO-Planned delivery cost to be posted - Taxes should be calculated on ZFR2's value.

Business scenario:

PO base price: 100

ZFR1: 20 (this value should not be added to taxable value)

ZFR2: 50 (taxes should be calculated on 50 on MIRO Planned Del.Costs)

MIGO- Stock 170 Dr.

GR/IR 120 Cr.

Delivery charges: 50 Cr. (ZFR2 value)

MIRO-Planned Delivery costs-ZFR2 - Expected a/c entries: (10% Tax)

Vendor 55 Cr.

Planned Delivery costs(ZFR2 value) 50 Dr.

Tax 5 Dr.

But when selecting relevant 10% tax code, taxes are getting calculated on 30(i.e. 50-20) instead of 50. This is due to subtotal put on ZFR1 in the pricing procedure.

Kindly revert with your ideas how should I be accomplishing this task of excluding the value of ZFR1 from taxable value and getting the taxes calculated on 50 in MIRO-Planned Delivery costs for ZFR2 as the value of ZFR2 is 50.

Sanjay

[former_member267327]

Hi Sanjay,

Can you please attach the screenshot of MIRO transaction.And as per you system considering tax base value 50 but before that what is net value for MIRO.

Have you tried with any other tax code?

Regards,

Dattatraya B

[former_member232979]

Here two condition records are maintained for two tax condition types with tax rate 9 each so rate should be 18% and calculating it on 50 makes it 9 but system is calculating it as 5.4 considering the taxable amount as 30 i.e. 50-20 where 20 is the amount of another freight condition which is completely inventorised while MIGO as there was subtotal 6 for this condition type.

[former_member267327]

Hi Sanjay,

When you do MIRO can you see the two freight line item if yes then select tax code against the those item on which you want to be calculate tax.

If possible, please attached the screenshot of freight MIRO.

Regards,

Dattatraya B

[former_member232979]

I need to post MIRO for one freight line item only (ZFR2 as mentioned). Freight line item for first condition(ZFR1) will not appear on MIRO as there is subtotal 6 for this condition type which makes it inventorised completely by the time of GR.