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tax on freight also

Former Member
0 Kudos

when i do MIRO, the tax is getting calculated on freight also which i dont want.

i want the tax is calculated on material cost only.

How to do this.

Accepted Solutions (1)

Accepted Solutions (1)

pankaj_singh9
Active Contributor
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Hi,

In MIRO at line item level, select ZERO % Tax Code or Tax Code with Nill Tax for e.g. V0 for Freight line and then try, it will not calculate tax on freight.

Answers (1)

Answers (1)

BijayKumarBarik
Active Contributor
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Hi,

You should have separate freight condition type in M/06 t.code, the Cond.category must be B(Delivery Cost) & select accrual flag in control data 2 TAB .See that in the schema(M/08) , the freight condition type must be assinged to accounting key with accrual key combination.

Also assign in OBYC, freight G/L account with proper account key with other combination.

When you create PO with freight cost , you will see NET price in the PO is without freight cost in which from net price tax wil be calclualting--- where we do maintaioned for base price (BASB) with 362 routine in tax procedure (OBYZ)

Just do GR wrt PO & then MIRO, you can see all correct accounting impact where you can clearly find our freight cost cost posted to freight G/L account and not tax added to it

Regards,

Biju K