AED value calculation in SAP CIN

[Former Member]

Dear All,

My client wants AED value (JAOP) to be calculated from PriceEDECessHCess , any idea if this is calculation is correct. Currently it is calculated as PriceBED+AED , due to this Cess & HCess is calculated for both BED & AED.

Please provide your suggestions.

Thanks in advance

Benny

[Former Member · Accepted solution]

hi

check your access sequence and change accordingly

[Former Member]

Closed.

[Former Member]

Dear,

As per my knowledge AED will never be calculated on Ecess or HEcess

AED will be calculated on the base amount same as BED

1.Base amount -> Net Price of PO

2.BED will be calculated on 1

3.AED will be calculated on 1

4.SED will be calculated on 1

5.Edu Cess will be calculated on (234)

6.Sec. &Higher Edu Cess will be calculated on (234)

This is the concept for domestic procurement with ED

Now what I suspect is that your client may require an additional tax component (like VAT,CST etc) that needs to calculated

on (12345+6) not "AED"

[Former Member]

Dear Redriver,

You are correct , in standard SAP TAXINN procedure is like that AED is calculated on base amount , so now my cilent wants to move it from top to bottom in procedure as shown below, is it legally correct ?

BASB Price 1750000

JMOP BED 175000

JEC1 Cess 3500

JSEP Hcess 1750

1930250

JAOP AED 4% 77210

2007460

JVRD VAT 5% 100373

Total PO Value 2107833

Thanks

Benny

[kunal_ingale]

Hi

its not right calculation , AED always need to be calculate on basic value or discounted value

now for your case ask business whats the scenario and why its need ,what are leagal things they have in their minds

[Former Member]

Hi,

I am not an expert of Excise duty but what I can say when SAP designed all these CIN(Country India) related settings they have done every thing on the basis of legal requirement and central Excise law.

also it is not just a condition type (JAOP) all the screen program like in config (say maintain excise defaults ,Classify condition types) and in the transaction screen Like MIGO,J1IEX is dependent and predefined and based on the assumption

that AED calculate on Net price of PO

Refer to this link

http://help.sap.com/saphelp_rc10/helpdata/en/9e/0b941b0fd64873bc54e8745fb044e7/content.htm

Even so you can obviously consult with Excise Person of your client and try to understand what exactly they try to achieve

[Former Member]

Hi,

AED will calculate after all the calculation of BED, Cesses.

I know while doing Imports, AED is going to calculate on Basic PriceBCDCessCVDCess

Regds,

CB

[Former Member]

Could not get your query. What does your client want?

It wants that AED should be calculated on : Price + ED+ Ecess+ Hcess

And presently AED is being calculated on

Price + BED

Cess and Hcess on BED+ AED

Is your query that what client is asking is it correct legally?

SAP gives standard process which you know is not what client is asking but neverthless you can always customize the pricing procedure.

Normally for if the requirement is legally correct or no needs to be ensured by client.

Regards

Sangeeta