Incorrect VAT and surcharge calculation - CIN

[Vinod_Pushpanat]

Dear All,

We have problem in VAT and Surcharge Calculation in case of Dealer Invoice.

During creation of purchase order, the customer is not aware actual CENVAT amount as well as VAT/CST. Hence, creates a PO with dummy tax code.

While posting MIGO, the user manually updates the excise amount which is calculated based on basic price confirmed by the dealer.

While posting MIRO by using a valid tax code, system is posting all the excise amounts correctly but VAT and Surcharge are incorrect.

The customer has tried to manually adjust the tax amount by removing the "Calculate Tax" check box but gets the error message “the tax amount must not be greater than the tax base".

We find that, VAT calculation does not consider the manually posted excise values. Instead the VAT amount gets calculated based on the percentages maintained in condition records.
 
Subsequently, the surcharge gets calculated on VAT amount including the difference of actual CENVAT amount and the Manually posted CENVAT.
 
Test Example:

	MANUAL Entry in MIGO/J1IEX (INR)	%	ACTUAL CENVAT Calculation by SAP	%	Difference
Material value	55630		55630
BED	7582.8		6675.6	12%	907.20
SEC	151.66	2%	133.5	2%	18.15
EC	75.83	1%	66.8	1%	9.07
Total Amount	63440.29		62505.9		934.42
VAT	2537.6*	4%	2500.23	4%
Surcharge	126.9*	5%	171.73	5%

(*- as required) (eg: VAT 2500.23 = 4% of 62505.9 and Surcharge 171.73 = (2500.23+934.42)*5%)

What could be the reason and how can this be corrected?

Thanks,

Vinod P

[msshihab1987]

Hi Friend

Please activate Change Field Control for Tax Base Amount in the system , in that case you can manually enter the tax base amount in the Tax Tab , so the system will calculate tax on the basis of the amount entered in the field,.

Please use the following IMG object

IMG>Financial Accounting Global Settings (New)>Tax on Sales/Purchases>Basic Settings>Change Field Control for Tax Base Amount

Enter the Tax procedure and flag the check box