on 04-30-2012 2:06 PM
Dear Expert,
Want to calculate service tax at the time of MIRO.
Currently we are using tax code process with condition records to calculate the service tax at the MIRO.
But in the new scenario my client wants to calculate the service tax during MIRO.
Example:
Service PO amount = ` 10000.00
Then a/c flow at MIRO is:
GR/IR Service = ` 10000.00 Dr
ST @ 10 % = ` 1000.00 Dr
ECS @ 2% =` 20.00 Dr
Hcess @ 1% = ` 10.00 Dr
Vendor V1 = ` 11030.00 Cr
New Requirement:
Service Po Amt = ` 10000.00
Then a/c Flow should be:
GR/IR Service = ` 10000.00
Service Tax = ` 900.00
Ecs @ 2% = ` 18.00
Hcess @ 1% = ` 9.00
Vendor V1 = ` 10927.00
This is because client does not know the service tax charges during creation of PO.
You can try this scenario with the following workarounds, if your Client agrees to it,
1- Create tax codes as per your requirement (Say 9,2,1 % for example you have given)
2- You can allow direct postings for the service tax GL & post this values of Service Taxes in G/L tab i.e. 2nd Tab you see in MIRO screen, Check which helps you,
As per me this is the only 2 options available for postings i.e. Either by Proper Tax code or by Direct G/L Postings.
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Hi Rakesh,
Try this one - it is simpler than the earlier suggestion I had given.
While doing MIRO, split the invoice value into 2 parts - one without service tax (in your eg. Rs.1000/=) and the balance with service tax (Rs.9,000/=).
Click on G/L tab in MIRO screen and enter 2 line items as below:
1. Service/expense G/L, Rs.1,000/= , zero% tax code
2. Service/expense G/L, Rs.9,000/=, 10% service tax code.
Upon posting, system automatically calculates the tax on the 2nd line item only, since 1st line item has zero tax code.
Regards
Prabhu
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Hi Rakesh,
As per details which you have given, I think your tax % is not on total base price it is on some different value , for this instead of tax code use pricing condition as delivery cost condition and assign your tax GL accounts to those condition, after that make the PO as per standard tax %
Base price : 10000
Ser. Tax 10% on base : 1000
make the service entry sheet
now at the time of MIRO select delivery cost condition, and if your tax value is different you can change it manually your total invoice value should be match as per base price + tax amount.
regards,
zafar
Please follow below.
-Create a Service Tax code
-Assign this to PO
-In MIRO, Please go in TAX tab, untick "Calculate Tax" put tax manually. follow below
Best Regards
Ruksana
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Hi Ruksana,
I have tried this already but system is not accepting that manual value. It calculate the tax code value. I think i am missing some setting or some procedure. Can you help me out on the same. Bcoz normally system behave in the tax code manner. Like condition record calculate the value and during MIRO same will flow to respective g/ls according to the setting. But I wana post manual service tax value during MIRO only.
Regards,
Rakesh
Hi Rakesh,
The service tax 10% and Cess on Service tax 2% &1%are fixed in Indian scenario and you can maintain condition records for the same.
So, I guess what you are saying is that only the base amount for tax calculation that could vary from PO to PO and this is known only when you receive the invoice from vendor.
If the above is actually your business scenario, then you can handle this as follows:
Create a new condition type for your MM pricing procedure and make it a manual condition. This will hold the base amount for tax calculation; in your eg. this will hold the amount Rs.9000. Assumption is that PO is modifiable and this actual base amount will be manually entered in the PO.
Then, for the tax procedure, with the help of ABAP, write a routine for the condition type BASB so that it picks up the value of the manually entered base amount from PO condition.
This way, taxes would be calculated on Rs.9000/= and not Rs.10000/=.
Hope it is useful to you.
Regards
Prabhu
Hi Ajit,
You can keep this as a statistical condition so that it will not get added to PO amount.
So, no g/l posting for this condition. Through your pricing procedure, update this condition value to a table field in EKPO.
BASB already has a alt.base routine 362. Replace it with a Z routine so that it will pick up the new PO condition amount as the base value.
Regards
Prabhu
Hi ,
As highlighted above , it is quite logical that purchase department & Vendor should maintain level of clarity on all terms ( including Taxes) at the time of Agreement.Specially if you are taking credit of these taxes.
If you still feel that requirement is justified then i guess this can be sorted by a work around solution.
1) Maintain condition type for Service Tax with calculation type Manual instead of %age.
Suppose ZSER Condition type with manual calculation type.
2) Add these Condition types in your taxation procedure.Maintain Key Combination as per you requirement Frequency.
3) Create a Tax Code
4) Apply this tax code in PO
5) Suppose at the time of Invoice you want to insert
Service tax ( ZSER ) : 100
Education Cess ( ZECS) : 2
Higher Education Cess ( ZHCS) : 1
Then Maintain Condition Records accordingly with proper validity periods.
6) At the time of MIRO posting system will check the condition records & pick up updated taxes Conditions..
Hope it helps !!
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you will have to enter the tax code in the PO. it may not be possible to enter the s tax amount directly as an amount during MIRO.
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Hi,
Service tax will capture ONLY at the time of invoice verification(MIRO).
Service tax need to maintain in the service PO in the INVOICE TAB in item details and during invoice
verification, service tax with tax code will flow from service PO to Invoice.
More on details, refer linkS:
http://scn.sap.com/thread/1807649
http://scn.sap.com/thread/1802120
http://scn.sap.com/thread/2091232
Regards,
Biju K
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Dear Biju & Rakesh,
Please note that I'm able to create a PO without "tax Code" and I have maintained one tax code as 10% only for the tax classification S1. Now after completing the service acceptance in MIRO while posting the invoice I have selection "S1" and system did allow me to post the invoice with service tax entries also. The postings are as below:
Vendor:110-
GR/IR: 100+ (from ML81n)
Service tax:10
Are these entries ok for your scenario?
Regards
Ayyallas
Hi,
I am very much aware that a Puchase Order can be created without a tax code but how did your business allow it as Puchase Order is a commited document which placed to vendor with certaion predefined conditions.
How your finanace department approve your method of invoicing and agreed to pay vendor!
Regards,
Biju K
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