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Apr 28, 2010 at 03:46 PM

Tax increase with billing plan

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We have a situation of tax increase with billing plan. Tax will be increased from 5% to 13% starting July 1, 2010

For Lease & License (L&L) billing with billing plan (e.g. quarterly/yearly/semi-annual) interval beyond July, will be charged 2 tax rates:

... Up to June 2010 @ 5%

... July 2010 and beyond @ 13%

SAP Note 938856 addresses this issue. We have implemented suggested solution in the note:

1. Maintain condition records for condition type CTX1: 5% valid-to 2010/06/30; and 13% valid-from 2010/07/01

2. Apply Note 938856, move u201820100701u2019 to CH_SPLIT+0(8).

3. Change the pricing type/copying control from D to G.

The function of split date works and tax calculated according to rates maintained for specific dates. CTX1 is calculated on base price (PR00).

Problem: The base price (condition type PR00) should have been prorated according to billing plan.

For example:

PR00 Base price: $1200

If billing plan = Yearly

Billing amount: $1200 Contract start: 2010/05/01

Expected results for tax amount:

2010/05/01 u2013 2010/06/30 = 1200 * 2/12 = 200 @ 5% = 10.00

2010/07/01 u2013 2011/04/30 = 1200 * 10/12 = 1000 @ 13% = 130.00

Current problem:

PR00 Base price remains constantly at $1,200

1200 x 5% = $ 60

1200 x 13% = $156

Appreciate any suggestions on how to deal with this.