FREIGHT AFTER ED AND BEFORE TAX (CST/VAT)

[Former Member]

Dear Experts,

please help me in calculating FREIGHT AFTER Excise Duty AND BEFORE CST/VAT TAX.

this is required, bcoz most of the Invoices from the vendors are having CST/VAT calculation on Freight amount but after Computation of Excise Duty.

please help.

[Former Member · Accepted solution]

Hi

There are 2 pricing procedures One is MM Calculation schema and the other in FI calculation schema.What I was suggesting is that you create a new condition type ZFRT ,YFRT in MM AND FI pricing procedure in tcode M/06 and OBQ1 respectively.The reason for creating the condition types in 2 procedures is that in FI procedure it is purely statistical .That means no account posting will happen here .It is only for correct calculation of CST/VAT

Lets say the Base value + ED + Ecess + SHecess =Rs 100

ans say YFRT (fright value statistical is Rs 10)

So your base for CST/VAT calculation will be 100+10=110

Similary the need for ZFRT is that you need to pay the freight charges to the vendor and also load your inventory during the GR .Hence I suggested you to create it as Delivery costs in M/06 with accruel indicator.If this is done it will not be carried over to BASB in TAXINN

With this you will be able to calculate CST/VAT on freight charges and also be able to pay the freight charges to the vendor

Hope this helps you

Regards

Sandeep

[Former Member · Accepted solution]

Dear Sandeep,

i have created a YFRT in FI with following parameters :

Cond. class A Discount or surcharge

Calculat.type B Fixed amount

Cond.category B Delivery costs

the statistical sequence in FI above is, this YFRT is after PriceED & before CST/VAT computation. therefore , i believe VAT/CST would be computed on PriceED+Freight.

I have created FRA1 in MM with following parameters :

Cond. class A Discount or surcharge

Calculat.type B Fixed amount

Cond.category B Delivery costs

the statistical sequence in MM above is, this FRA1 is before Condition Type "JEXS" (which is Tax on PO) and all other delivery cost which is not levied with CST/VAT is after condition type JEXS. therefore , i believe VAT/CST would be computed on PriceEDFreight in MM too.

please help me & correct me if i any important is missing above.

Edited by: Hussein Merchant on Nov 18, 2009 7:05 AM

[Former Member · Accepted solution]

please check from and to steps given for CST condition type in tax-procedure

[Former Member · Accepted solution]

Dear Chintu,

As per advice from Experts (see trail), i have created a ZFRT Condition Type in FI Tax procedure and assigned this condition after ED+Price and before VAT/CST computation. since VAT/CST from to steps includes ZFRT, but still no success, to compute VAT/CST on freight.

[Former Member · Accepted solution]

Dear Experts,

Assigned subtotal 4 or 6 against the freight condition. Assigned alternate base value routine 362 or 363 against the VAT condition.

Also found that :

DO NOT ASSIGN SUBTOTAL 5 or 2, as these are meant for manual excise and ADC & will cause inconsistencies in GR and MIRO.

Query :

Scenario : Base Price 1,00,000.00 + ED 8.24% = 1,08,240.00

+ Freight 1,000.00 = 1,09,240.00

+ Deductible VAT 12.5% on 1,09,240.00 = 13,655.00 (since we want VAT to be computed on Freight too)

Therefore actual Tax on PO is 8,240.00 + 13,655.00 = 21895.00

PO Value = 1,22,895.00

Combinations, if i use :

1. 4 & 362 : Total Tax on PO is 21,987.70

2. 6 & 362 : Total Tax on PO is 21,552.30

3. 4 & 363 : Total Tax on PO is 21,862.70

4. 6 & 363 : Total Tax on PO is 21,677.30

Dear Experts :

The nearest combination to the target is combination number 4, but has a diff of 32.00

what must be the reason that Total Tax is not computed correctly.

please help me further.

Edited by: Hussein Merchant on Nov 19, 2009 5:52 AM

[Former Member]

this is could be done only by taking help from SAP OSS, since we need to amend standard pricing procedure.

thank you.

[prabhjotsingh_nayyar]

Dear Hussein,

Can you please let me know the solution of this problem as I am alsp facing the same issue.

You reply is awaited and will be highly appreciated.

Regards

Prabhjot Singh

[Former Member]

Hi Prabhot,

Please do the following :

1. Assigned subtotal 6 against the freight condition

2. Assigned alternate base value routine 363 against the VAT condition

3. Last & most important ==> Assigned alternate base value routine 363 against the BASB Condition

doing this, i was successful, please let me know the results.

[prabhjotsingh_nayyar]

Thanks a lot Dear......This has helped me in solving the issue.

Regards

Prabhjot Singh

[Former Member]

Hi Hussein,

I followed the same procedure but still im having problem.

For the calculation of VAT/CST freight amt is not getting included in base value.

What do i need to do can u plz explain me.

Thanks.

[Former Member]

Dear Hussein,

I also facing the same problem.

I have created a YFRT in FI with following parameters :

Cond. class A Discount or surcharge

Calculat.type B Fixed amount

Cond.category B Delivery costs

the statistical sequence in FI above is, this YFRT is after PriceED & before CST/VAT computation. therefore , i believe VAT/CST would be computed on PriceED+Freight.

I have created FRA1 in MM with following parameters :

Cond. class A Discount or surcharge

Calculat.type B Fixed amount

Cond.category B Delivery costs

the statistical sequence in MM above is, this FRA1 is before Condition Type "JEXS" (which is Tax on PO) and all other delivery cost which is not levied with CST/VAT is after condition type JEXS. therefore , i believe VAT/CST would be computed on PriceEDFreight in MM too.

I also assigned subtotal 6 against the freight condition

2. Assigned alternate base value routine 363 against the VAT condition

3. Assigned alternate base value routine 363 against the BASB Condition

But still not geting succed.

The freight value of FRA1 not flowing to the YFRT condition, So system not calculte the vat against freight.

Please let me know if i m missing any assignments / linkings

[Former Member]

Hi Sudip,

Please clear one of my doubt. Have you assigned 6 to FRA1 or YFRT. Actually 6 should be assigned to FRA1 (MM) and 363 (FI Tax Procedure).

I think there's no need to mention YFRT statistical in FI Tax Procedure.

Please try and let me know.

[sapmm6_kumar]

Hi Hussein,

I am doing the same scenario. I would like to know what is the access sequence you have maintained for the freight condition YFRT. As far as ZFRT condition it can be maintained manually. Please advice..

Thanks & regards,

Kumar

[Former Member]

Hi Kumar,

Mentioned earlier also, I have not mentioned any YFRT Condition in FI Tax Procedure, hence requirement for access sequence.

Assign

1. 6 in Subtotal to Freight Condition Type ==> ZFRA ==> in MM Pricing Procedure

2. 363 in Base-Value-Routine to Condition Type ==> BASB and VAT ==> in FI Tax Procedure

Just follow the steps mentioned and you should be able to calculate it perfect. lemme know.

Best luck to you.

Edited by: Hussein Merchant on Mar 2, 2010 1:09 PM

[Former Member]

hello sorry for replying even id the threed is answered

this sub total solution only will work only if ur freight dont change

like in PO i have given 100 rs and at the time of actual invoice it becomes 150 then system will not calculat corect VAT or CST

check at ur end

I have taken this issue will SAP and they also could not solve the issue.

hope this helps

[Former Member]

Hi,

Assign Subtotal "6" to the Freight condition type in MM pricng in "M/08 and assign Alt Cal Base Value as "363" to condition type JVRN in Tax Procedure in "OBQ3" and then try.

Vipin

[Former Member]

Dear Experts,

i still have no success. please help me to achieve this.

what must be the mystery : System includes Packing & Forwarding for ED & CST/VAT computation. on similar lines Freight Condition Type in M/06 has been created.

please let me know if i m missing any assignments / linkings.

Edited by: Hussein Merchant on Nov 18, 2009 11:48 AM

[Former Member]

Hi

You could follow the following steps

1) Create a new condition type in OBQ1

2) Include the same in OBQ3 against your Tax calculation procedure

Ensure that this is only statistical (only for information purpose)

Give appropriate TO FROM steps so as to accomodate this condition also

3) Create a new condition type again in M/06 as delivery costs and also tick Accruel indicator

4)In M/08 attach the condition type at appropriate level and also account key

Maintain the condition record for both the condition types in FV11 and MEK1 respectively

With this you will be able to Inventorise the freight charges and also able to calculate CST/VAT on freight

Regards

Sandeep

[Former Member]

Dear Friend,

Maintain the Fright charges condition by coping the existing fright condition after JEXS (Taxes on the PO) condition in pricing procedure, by this you can able to calculate fright after taxes

for the CST and VAT are not creditable so you can define the manual excise condition in the pricing procedure itself and calculte

Regards

Pramod

[Former Member]

Dear Expert,

the present Pricing Procedure is NO VAT nor CST is computed on Freight Amt. Freight Amt is usually after Excise Duty.

though i have done changed the sequence of Freight in all possible way, but still VAT/CST does not consider freight amount.

please help.

[Former Member]

Dear Sandeep,

if you can please elaborate a little detailed and help me.