Base amount for Tax calculation should include Freight in TAXINN

[Former Member]

Hi,

Can anyone provide me all the configurations setting required in MM Pricing Procedure and TAXINN so that Base amount for Tax calculation should include Freight?

Thanks in advance

[rafael_zaragatzky · Accepted solution]

Hi,

Are you talking about non-deductible tax? Or the tax applied only during the invoice verification?

Do you have your freight conditions appearing in MIRO as planned delivery costs (as the standard conditions FRx1), are they part of the material amount suggested in MIRO or not considered in MIRO at all?

BR

Raf

[BijayKumarBarik]

Hi,

Freight Value should go to separate account, why should one pay all tax on Freight charge!

Ok. As per requirement, lets say ,you have condition types:

PB00 : Basic Value

PBDS:10%

ZFRV: Freight Value

& want tax calculation should be only on the PB00 PBDS:ZFRV

Now make below setting:

1.Select ZFRV condition type in M/06 ,go to details & do not select accrual flag in control data 2 TAB & keep BLANK in condition category in contorl data 1 segment & save

2.Also do not keep account key & accrual key for the ZPBX condition type in calculation schema in M/08( keep blank).

After above seting create PO & in PO, you can see all value & NET Price is calculated PB00 PBDS:ZFRV

Now you can have a logic( in tax procedure) to calculate all taxes from BASE AMOUNT(BASB) from net price(PB00 PBDS:ZFRV)

Regards,

Biju K

[Former Member]

Hi,

The requirement is Base amount for EXCISE CALCULATION should include Freight in TAXINN. For example,

Base Price = 100

Freight = 10

The Excise duties should be calculated on the Value 110 (=100+10).

The Freight value of 10 to be loaded to the Inventory (but credit entry should be posted to a separate account) and is payable to Vendor.

Please provide some ideas to resolve this.

Thanks in advance

[pankaj_singh9]

Hi,

In Your pricing procedure, (Take following e.g.)

PB00 - Base Price

FRB1 - Freight Amount - This will be used in PO if Tax calculation should not happen including Freight Amount

ZFB1 - Freight Amount (TAX) - This will be used in PO if Tax needs to be calculated considering Freight (In M/06, create ZFB1 by copying FRB1. Assign the same Accrual Key as of FRB1 in M/08 and also assign Subtotal "4" to this condition type in M/08)

Now Try creating PO with ZFB1, it will calculate tax including freight amount.

[Former Member]

Hi Pankaj,

I did the same: made a copy of Freight condition and assigned subtotal 4 against that in pricing. But still the Freight amount is not being considered for Base amount for Excise calculation.

Please provide some more ideas with complete configuration settings

Thanks in advance

[pankaj_singh9]

Also do 1 more setting, in OBQ3, assign Alternative formula for condition base value "363" for condition type JMOP and rest condition types and then create a new Po to check the same.