SD Pricing

[Former Member]

Hi All,

I have a requirement, whereby the customer enters the selling price (A) and the system calculates (backwards) to split the eventual selling price (B) and tax (C). The Nett Price: B + C = A.

For example:

1. Customer enters into the single Sales Line Item = $10

2. System calculates Special Tax (ZTX1) : 10% = $10 / (100% + 10%) * 10% = $0.9

3. System calculates Price (PR00) : $10 - $0.9 = $9.1

Any ideas on how to represent the above in Pricing?

Thanks in advance for your replies.

Sincerely,

Navin

[Former Member · Accepted solution]

Hi Navin,

I am a curious person.

In B2B the sales price is always negotiated before taxes (before VAT in Europe), because companies get taxes reimbursed.

Is this a B2C situation or is it just common business practice in India?

Thanks in advance for your answer & Best Regards,

Franck

[Former Member · Accepted solution]

Hi Franck,

I am actually in Malaysia. There are a few possibilities why the scenario I mentioned occurs:

1. The business wants to absorb the tax to stay competitive against other vendors

2. The price is calculated outside of the system and is already inclusive of the tax

3. The business is given special privileges / tax exemptions

With the above, they are to identify and process the tax postings.

I hope I answered your question.

Thanks.

[Former Member · Accepted solution]

Hi Navin,

Thank you for your answer:

1. The business wants to absorb the tax to stay competitive against other vendors

So the idea is to give a discount to the customer equivalent to the tax. Maybe you should consider it fully as a discount anyway.

2. The price is calculated outside of the system and is already inclusive of the tax

You could also transfer the price before taxes from the external system to SAP, that would solve the problem.

3. The business is given special privileges / tax exemptions

This is standard functionality in SAP, the customer gets marked as "no tax" in it's sales master data; so no tax is calculated.

Regarding your question, I agree with Jonathan: You will need to adapt your price procedure so it behaves like the standard RVAB02 Gross Prices.

Check SAP documentation:

The pricing procedure RVAB02 has the following functions:
- Entry of gross prices and discounts
- Separate transfer of the new prices and discounts into the profitability analysis
- Determination of net prices from gross prices for customers not subject to tax

If some customers are subject to gross prices and other ones to net prices, two different price procedures have to be maintained and determined based on the relevant field in the customer master data.

Best Regards,

Franck Lumpe

Freelance SAP Logistics Consultant

[Former Member · Accepted solution]

Hi Franck,

Thanks for your advice.

I will definitely look into RVAB02.

Thanks.

[Former Member]

hello, navin.

if you are still open to other alternatives, check out pricing procedure RVAB01. with this pricing procedure, you enter the price inclusive of tax. then, the price is split into the material price and discounts without tax, and the tax itself.

regards.

[Former Member]

hi jonathan,

thanks for the suggestion. unfortunately, there is a customised Pricing Procedure in place and if we were to enhance with the suggested Pricing Procedure, the amount of effort may not be justifiable.

hence, we decided to retain the current Pricing Procedure.

thanks again for the suggestion.

[Former Member]

Hi All,

Example:

1. Customer enters into the single Sales Line Item = $10

2. System calculates Special Tax (ZTX1) : 10% = $10 / (100% + 10%) * 10% = $0.9

3. System calculates Price (PR00) : $10 - $0.9 = $9.1

I applied AA's logic. As per the example, I am now able to generate ZTX1, resulting in the Special Tax = $0.9. However PR00, still reflects Price = $10.

Hence, I now need to update PR00, to reflect that Price = $9.1. This I believe once the logic is in place, the Net Price will reflect $10.

Any advice? Is there any standard routine available?

If I am to build the coding / routine, I will acquire the assistance of an ABAPer. Any advice on this?

Appreciate all your replies.

Thanks.

[Former Member]

Hi NAvin

Goto VOFM>formulea>base condition value.

Write a new routine such that PR00 = PR00 - ZTX1. Considering PR00 is your base condition type which is having value $10.

this will work 100%

try and revert

[Former Member]

Hi Yadav,

Thanks for your reply, the ABAPer is currently developing the logic now. I will keep this post updated.

Thanks

[Former Member]

Hi All,

There is an additional but relevant requirement. The user would like the Tax postings to update 2 G/L Accounts.

Is there a way I can represent it in the Pricing Procedure? Can I utilise the Accruals fields?

The 2nd posting is to a Balance Sheet account.

Appreciate your replies.

Thanks.

[Former Member]

Removed - Duplicate

Edited by: Navin Nair on Nov 24, 2009 9:31 AM

[former_member188076]

Hi

This is the case of Percentage inclusive.

So to calculate the ZTX1 as 10% = 0.9, you will have to set Calculation Type for this Condition Type in V/06 as H (percentage Included). Then you will get this result.

Please check and revert.

Regards

Amitesh Anand

[Former Member]

ur calculation seems to be wrong

if u take 10 percent of 10 dollar it will be 1 dollar how come it came 0.9......

Theres a solution for ur problem for calculating it reverse that means price inclusive of taxes and then split taxes and price........

In the Condition type calculation type maintain Percntage Included..........

I have already done for my client and was success full

If u have any queries u can still post...........welcome

regards,

Ram

Edited by: Ramaswamy Arumugham on Nov 20, 2009 8:28 AM

[former_member617914]

I think $0.9 came because the tax is calculated on PR00 price & not the net price.

The entire pricing values are present in an ABAP structure (xkomk or xkmop). You will need an ABAPer to build code to read that structure for the condition value ($10) of that condition type. Then, he needs to code the logic for backward calculation. You may have to make the condition automatic and not allwoed for manual change. It would be condition value routine since final values are being calcualted.

Advice: The ABAPer has to be careful with the code since arithematic calculations work in a different way in routines than usual, debugging would be helpful.

[Former Member]

Yes Ur right Mr.Shiv