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VAT not calculating on freight charges in PO for KSA

Dec 11, 2017 at 11:03 AM

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Hello Expert,

We are in the process of implementing VAT for our office in KSA. We have configured the pricing procedure, but VAT is not getting calculated on freight charges.

Our requirement is that VAT should get calculated on Net Price + Freight.

Net Price = 1000

Freight = 50

VAT = 5%

Tax = (1000 + 50) * 5% = 52.5

However we are unable to achieve this for country KSA. We have implemented on the possible available configuration steps found via community, blogs, forums but still no result.

Our current set up is Base Price is tax procedure (OBQ3) is having base calculation as 362 and freight condition in MM pricing (M/08) has subtotal 4. Upon debugging the routine 362 we found that component IN has been hard coded and hence routine 362/363 will not work countries other than IN. Is there any other routine do you think we should use. Do you suggest we should raise it to SAP.

Your valuable reply is highly appreciated.

Thanks & Regards,

WASIMUDDIN.

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2 Answers

KRISHNAMOORTHY SUNDARESAN Dec 11, 2017 at 11:25 AM
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Hi,

Generally this kind of requirement is handled to through routines (meant for base) in tax procedure and sub-totals in (MM pricing). First check existing routine is only designed for India. If it is so, you can do one thing that you can copy the existing routine and modify for your requirement (Keeping existing logic remain same) and assign the same in tax procedure. Then it will work for both countries.

Regards,

Sundaresan.K

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Hello Mr. Krishnamoorthy,

I tried copying the routine but at one place where the logic is written for including freight for tax calculation, country code IN is hard coded. Also there are approximately 25 FM being called internally which we do not where it will impact hence we are reluctant to carry out the changes. Is there any other workaround which you think we can explore.

Thanks & Regards,

WASIMUDDIN

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Jürgen L
Dec 11, 2017 at 12:38 PM
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I think this confusion just happens because you are thinking that you have to setup VAT for KSA like India taxes.

Where is it said that you have to have a routing 362 or 363?

Why can't you follow the setup from OSS note 2477105 - VAT Baseline Package for Saudi Arabia

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