VK11 calculation type

[Former Member]

Dear Forum,

May I know what is the difference for A (percentage) and H (percentage included) in column calculate type in VK11.

Kindly confirm if my understanding is correct. assume tax is 10%.

1 A percentage

value 1000 (100% where value is NET)

tax amount is 100

2 H percentage included

value 1000 (110% where value is GROSS)

tax amount is 90.90

Thanks

[Former Member · Accepted solution]

Hi,

Difference between A and H is as follows:

in A, Tax is calculated on base price:

Ex: Base Price = Rs.100 and Tax of 10%

there tax is calculated as Rs.10

In-case of H

Ex: Selling price to customer = Rs.100 (including Tax) usually this is used in reverse calculation in pricing procedure

So here tax is included in Rs.100 there tax of 10% would be deducted from Rs.100.

Let me know if you need further details since this is the scenario I am working currently at my client.

[Former Member · Accepted solution]

Dear Rohan,

Can you confirm if my example is correct?

Thanks

[Former Member · Accepted solution]

Hi,

I was actually not able to understand your example. I will give you an example of how it works.

I have configured for reverse calculation in my client.

Assuming they have an MRP of Rs.100. From this they deduct distributor and retailer margins of 34%

therefore the selling price to the distributor would be 100 - (100*0.34) = Rs 66

Now this Rs66 is what the distributor has to pay to me including taxes. But I need to bifurcate this Rs66 into my base price and tax amount since they need to go to their respective G/L accounts.

So i copied this selling price of Rs.66 into a pricing structure and made all my tax condition types as calculation type H (inclusive)

Now what happens is that my tax of 4% is deducted from Rs.66 through the following formula: Selling Price - ( Tax% / 100Tax%) i.e., Rs.66 * (4/1004) = 2.54 which is my tax amount.

Now my base price would be Rs.66 - Rs.2.54

I hope this is clear for you now. Let me know if you still have any questions.