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Base amount in tax procedure is calculating wrong

Dec 30, 2017 at 07:50 AM

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Former Member

Dear all,

I am creating an asset Import purchase order with using freight and insurance conditions in pricing procedure.I put some value on freight and insurance.

In the tax procedure BASB (base amount ) is calculating wrong.

For example.

exchange rate: 67.95 USD

IN PRICING PROCEDURE:

Base value: 650000 USD

Freight value: 135609.38 USD

Insurance value: 6376.83 USD

IN TAX PROCEDURE:

BASB:10,297,962.97

It is wrong.

it should fetch there 791986.21 USD.

Please suggest what should I do?

Thanks & Regards.

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Can you post screen shot of condition tab of purchase order (full screen), and base amount in tax procedure by clicking taxes on invoice tab.

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Former Member

Dear Dibyendu Patra,

Please check the screenshot.

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Where is the accepted right answer?

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3 Answers

PRASOON AK Dec 31, 2017 at 06:43 PM
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Hi,

Please check the document which explains the concept of taxation with freight in Indian Scenarios. Chekc the same with your settings and revert back.

https://blogs.sap.com/2014/03/28/tax-calculation-on-freight-different-scenarios/

Regards,

Prasoon

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Former Member

Dear sir,

I have read this document. freight and insurance value is fetching right but it comes after multiplying with the exchange rate.

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Hi,

First of all, I dont understand why you are inserting tax code in PO in case of import scenrio for India. In the GST solution, the PO is expected to be with zero tax code, and the taxes (IGST) are calculated on Assessable Value + BCD whiel doing Customs MIRO, and it will be paid to customs vendor - not on foreign vendor. Could you please clarify why you are trying to impose the taxes on the foreign vendor.

Regards,

Prasoon

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Former Member
PRASOON AK

Dear Prasoon Ak,

I know about import process but it is client requirement.So we are doing this. So please tell me, Why freight and insurance condition are multiplying with exchange rate again while they are maintaining in USD .

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PRASOON AK Jan 02 at 03:06 PM
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Hi,

I have already mentioned that its not the best practice to insert tax code in Import PO in case of India - GST scenario. However, understanding your current situation, I would suggest to check the below:

In the MM pricing procedure, you have maintained "Print Indicator" as "S" (left to subtotal 4). Remove S and test the scenario again with a new PO.

Check the same and reert back.

Regards,

Prasoon


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Former Member Dec 30, 2017 at 10:01 AM
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Screenshot 1: Pricing procedure


Screenshot 2: Pricing procedure in purchase order

Screenshot 3: Tax procedure

Screenshot 4: Tax Procedure in Purchase order


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