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Former Member

Tax on the cost

Dear Frnds,

We provide samples to customer for which we use a different document type in sales. The pricing for this order contains no net price but just the cost (vprs). There is a requirement where we need to include tax on the cost price in the sales order which should be acccrued. Is that possible tax on the cost if not is there an alternative.

please help me with regards to how i could do the same.

Regards

Maddy

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6 Answers

  • Best Answer
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    Former Member
    Mar 06, 2011 at 07:11 AM

    Hi,

    Start wit creating a new pricing procedure for this. Use either VPRS as suggested or a new condition type where the cost is maintained. This proce will go to Revenue G/L. Include your tax conditin types that calculate tax on this price and assign respective tax G/Ls to these condition types.

    The last and important step would be to create a new conditin type called 100% discount and assign a Business Promotion G/L to this condition type. Apply this 100% discount on the amount payable by the customer. This will make the customer receivables as 0.

    Therefore, the base price will go to revenue G/L, Taxes will go to Tax G/Ls and 100% discount will go to Business promo g/l and Customer account will be also zero.

    Let me know if you have any further issues with respect to this. I have done the above configurations in my previous client and it is working perfectly fine for me.

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    • I am sorry, still I am not clear as to why a tax value should be posted to an accrued account. In any country, it would be logical that as and when any invoice be it is a normal sales billing or sample sales, the respective tax amount should be paid to the tax authorities every month and from SAP point of view, this is possible only if you post the amount to FI which is possible only if an Account key and G/L Account maintained for that condition type.

      Nevertheless, you can try with this but I am not sure on the outcome.

      In condition type, dont tick the box for Accrual and in pricing procedure also, dont tick the box "Statistical" for that tax condition type. Assign a different Account Key to this condition type. Now in VKOA, you can see two tabs (a) G/L Account and (b) Provision acc. In normal circumstances, only in first tab, we assign the G/L Account. In the above case, you leave the first column as blank and assign in the second tab for the above Account Key.

      I am just giving a rough suggestion and you have to test it and update the forum.

      thanks

      G. Lakshmipathi

  • Mar 04, 2011 at 07:09 AM

    In such cases, have your VPRS as a selling price which means, this condition type should be on top of your pricing procedure.

    thanks

    G. Lakshmipathi

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    • Dear ,

      You can that way or just need to Add another pricing condition in Priccing Procedure at first step in ur pricing

      and keep it as statical and do maintain pricing condition value same as VPRS and keep ur Tax calculation based

      on this perticular Price Condition.

      Regards

      AJIT K SINGH

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    Former Member
    Mar 05, 2011 at 06:00 PM

    Thanks..

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    Former Member
    Mar 07, 2011 at 12:40 PM

    accidentaly marked as answered

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    • Former Member Lakshmipathi Ganesan

      Friends,

      I am considering one more possibility for the above mentioned issue.

      I could have price in the sales order and then a condition type offering a 100% discount plus my tax condition type.

      If i do invoicing is it possible to not hit the customer accs for the above entries as he is not expected to pay (being a sample sales order) but insted make the sending company liable.(accounting entries on invoicing)

      please do give me ur feedback.

      regards

      Maddy

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    Former Member
    Mar 09, 2011 at 10:46 AM

    Hi,

    OK at the end of the month create a single invoice document. For the tax condition type create a Accrual key and assign it against the Condition type in pricing procedure.Let the tax condition type be statistical no issues.

    maintain the G/L accounts in SD>Basic Functions>Account Assignment>revenue Recognition>Maintain Account Determination-->Assign G/L accounts for revenues and deffered revenues

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    Former Member
    Mar 10, 2011 at 06:25 AM

    Hi,

    We have simulated the scenario in our system for one of our client . Where we created a Sales order which contains VPRS,UTXJ,JR1 and one additional Z condition type with accrual tick mark in condition type.

    For the Z condition type we created a accrual key and assigned in the pricing procedure and G/L accounts maintained in SPRO>SD>basic Functions>Account Assignment/Costing>Revenue Recognition-->maintain Account Determination

    Done Sales order,Delivery and Invoice. During the Invoice the postings was like mentioned below:

    Customer a/C +

    Customer A/c - (This line has to be passed in BTE - When accounting document is posted this BTE is called)

    TAx a/c -

    tax a/c +

    Tax accrual a/c -

    If this postings are satisfactory then you could proceed with this solution.

    Regards

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