Removing inclusive tax

[Former Member]

On  the price procedure, I am using PR01 which is inclusive of tax. MWSI Output tax is 14%.

My requirement is if the customer is in "customer group 1", the inclusive tax (14%) must be removed in the total payable amount. It means, customer will NOT pay for this 14% tax.

How to achieve this in price procedure? Please help.

[Former Member]

What I need is to get the value of "inclusive tax" and subtract it to PR01.

[Former Member]

I replicated MWSI to ZTAX. then I used  SUB TOTAL to minus PR01 to ZTAX. instead of subtracting, it is adding the 12% tax. It should do subtraction. How can I accomplish that? I tried to change "plus/minus" setting on v/06 (for ZTAX) but that setting is disabled.

please help.

[former_member184065]

Dear,

Please share your Pricing Procedure and also that two Condition Types screen shots .

Note : without screen shots ,can not understand .

Thanks,

Naren

[Former Member]

here is the price procedure

[former_member184065]

Dear,

1. Where is ZTAX Condition Type in your Pricing Procedure ?

2. Why you have assigned Requirement 10 -Plant is is set to ZTX3 Condition Type and also why did you maintain Statistical to this Condition Type ?

Note : Please share your Condition Types screen shots.

Thanks,

Naren

[Former Member]

I apologize for the incorrect images.

here are the correct images. thank you.

I replicated MWSI to ZTAX. then I used  SUB TOTAL to minus PR01 to ZTAX. instead of subtracting, it is adding the 12% tax. It should do subtraction. How can I accomplish that? I tried to change "plus/minus" setting on v/06 (for ZTAX) but that setting is disabled.

[Former Member]

I also see problem with ZTAX because this condition type is a duplicate of MWSI. If I implemented the zero tax (in VK11 conditions), MWSI will be of zero and ZTAX will be affecetd too. Then that means I will have no value that I can subtract from PR01 when that happens.

[former_member184065]

Dear,

Do you know ,What is the function of MWSI ?

MWSI  - Calculation Type is Percentage  ( If it is having 2 % ) Included means If you have Material Cost 100 rs then the Tax is calculated within the Material Cost 100 rs.

MWST calculates this as 10 + 2% tax that is tax is Rs 2 and the final value will be Rs 102.

but in MWSI  ,the Material Cost 100 rs having tax amount also whatever you have maintained percentage for that MWSI Condition Type .

If you maintain MWSI 2 % then the material cost is having 100  =( Material Cost + 2 Percentage

Tax ) .So,finally ,the Net Price is 98 rs and Tax is 2 rs .

Note : Request to learn ,how to configure Pricing Procedure with reference of the Standard PR.

If you have any doubts please let me know .

Thanks,

Naren

[Former Member]

I know that already. Thanks for reminding.

[Former Member]

I already used customer tax classification which is on customer master (sales area>billing documents tab). I defined a new entry on that and it defines if a customer will get zero tax. I was able to apply it on VK11. On the test sales order, the tax is zero but the problem is the total amount remains the same 130. total amount should be (116.07) when the tax is removed (13.93).

pls help.

[former_member184080]

Hi Anwar,

In your pricing procedure nowhere you mentioned that tax has to be deducted from PR01. May I now from which step are you deducting the tax from your PR01.

If your requirment is to have Price - Tax ( since you have price inclusive tax) then maintain another condition type just after PR01 and maintain records for that condition type.

Try in the above combination and let us know how system is behaving.

Regards, Sai Krishna.

[Former Member]

yes that is what I need --- PR01 minus Tax.

How to do that? How to set it up on my price procedure using a new condition type?

Please guide me about the steps.

[former_member182378]

Anwar,

Can you confirm / comment on the below cases:

1. Customer belongs to Customer group1

PR01 = 130

MWSI = 0

2. Customer does not belong to Customer group1

PR01 = 116.07

MWSI = 13.93

Is the above your business requirement?

If not then please elaborate in two cases, as above.

[Former Member]

TW, your assumption is correct.

[former_member184080]

Hi,

As I mentioned, create another statistical condition type after PR01. and give Calc. type H for that condition type. Ensure that this particular condition type is deducting tax from PR01.

In that condition type, you can have the access combination of customer tax classification.

But, your MWSI will be as it is and it also behaves as per your requirment and also posts to relevant tax G/L accounts.

BTW, Are you working for any FMCG or Pharma clients for which the MRP is the inclusive of Tax?

Regards, Sai Krishna.

[former_member182378]

Anwar,

1. Customer belongs to Customer group1
PR01 = 130
MWSI = 0
2. Customer does not belong to Customer group1
PR01 = 116.07
MWSI = 13.93

Create a discount condition type

This condition type should have the same value as MWSI

So, Pricing procedure & sales document, Tab Conditions:

1. Customer belongs to Customer group1

PR01 = 130

ZDTX = 0 (this value is same as the value of MWSI)

Price = 130

MWSI = 0

2. Customer does not belong to Customer group1

PR01 = 130

ZDTX = -13.93

Price = 116.07

MWSI = 13.93

The value of MWSI, in the sales order comes from the value maintained in the condition record.

Having field "Customer group" or having field Customer tax classification - is your call.

In order to make value of ZDTX equal to MWSI, there could be more than one ways.

If the above is something which you can use.

Then how to make ZDTX = MWSI can be discussed / suggested.

[Former Member]

In your example how can I make ZDTX equal to MWSI?

what will be the entry in price procedure?

how can I do PR01 minus tax?

[former_member184080]

Hi Anwar,

Sorry to say that, its a very fundamental question of SAP SD pricing.

how can I do PR01 minus tax?

There is nothing wrong to try in your developmnet system with various combinations.

I have already explained you with few hints and inputs. Even, TW also explained you in details.

Please try from your end and get back to us if you still not able to get as what you expected.

Regards, Sai Krishna.

[Former Member]

This message was moderated.

[bsivasankarreddy_reddy]

hi

you have maintain the tables like this

1) customer group + and based on your requriment field then one table , You have add the condition table for MWST acces sequence other another accesequence ,

then based on that you mainatain the condition records , then coustomer group maintain at customer master level ,

SO mwsi condition type will not calculated

regards

bojja

[jignesh_mehta3]

Hello Anwar,

You requirement is - if Customer is in "customer group 1" then he should not pay Tax, for all other Customer they have to pay 14% inclusive Tax.

Now, this you need to include Customer Group in Access Sequence of your Tax Condition Record. After that maintain required Condition Records such that for Customer Group 001 Tax will be 0% & for others it will be 14%.

Thats it.

Thanks,

Jignesh Mehta

[Former Member]

Hi Former Member,

why you want to remove tax what is the business requirement?

1.if tax will remove from sales order that mean he is not going to pay tax -- which can be achieved from tax classification in customer master record.

2. another way copy Requirement 10 and add your logic and assign against the tax conditon type.

3. if this tax is already added into your MRP price then you have to do reverse calculation for it.

Please confirm us after understanding your business requirement .

Regards

Arun

[former_member186385]

Hi,

As i understood your requirement you need 14% of tax while processing the sales order and later based on the customer group you will change to 0, if so, then you can make changes directly to the sales order by inserting the alternate tax classification as 0 ( exempt from tax)

if your process is automated and no manual intervention is possible then you can proceed by including customer group as one of the access in determining the condition record as suggested

but this should be driven by FI and TAX team as it will be their area

alternatevely if you know for which customers you want to give the exemption then in the customer master itself change the tax classification to 0

Apart from these standard ways there are also some customized ways by making code changes

check your feasibility and try

regards,

santosh

[former_member184080]

Hi Anwar,

If I understand your question correctly, you want "0" tax when the customer group = 1.

In your current pricing procedure: MWSI has the reference condition type MWST. In this you can see the second access which has Tax classification of the cutsomer.

You can maintain tax classification for the cutomer whom you want to have "Zero" tax with calssification "0" - nil tax.

Now, go to VK11 and maintain condition record with the combination of Customer Tax classification"0" with tax % = 0. so whenever the customer has this combination you will get the "0" tax in your sales order.

Let me know if I didn't understand your question

Regards, Sai Krishna.

[former_member182378]

Anwar,

Create a condition table with fields Departure country / Destination country / Customer group 1

Put this condition table "at the top" in your access sequence.

Also have the exclusive indicator activated for this condition table.

In VK11, maintain the value of this condition record = 0.

By the above set up, if the customer belongs to that particular Customer group 1, then the value of tax would be zero.

If the customer does not belong to Customer group 1, then the value of the tax would be 14%.

[former_member188027]

Hi Anwar,

Please creat the routine VOFM (Requirements -Pricing).  and put your requirement if the customer is in "customer group 1", the inclusive tax (14%) must be removed in the total payable amount.

reg,

Anand

[former_member184065]

Dear,

In that case ,You can use any Discount Condition Type for reducing 14 % Tax amount in your Sales Order Manually or automatically .

If you have any doubts please let me know.

Thanks,

Naren

[former_member182378]

Narendra,

,You can use any Discount Condition Type for reducing 14 % Tax amount in your Sales Order Manually or automatically .

By reading your suggestion once I could not understand the point.

Are you saying create another condition type, which shall be 14% minus. In other words would make the tax component zero (in the sales order)?

If yes, then what about the amount posted to tax? (i.e. 14%)

In the accounting view, it would still be seen as the tax was 14% (value equivalent to 14%).

That is not the case. Here if the customer is of a select Customer group, then the tax = zero.

[former_member184065]

Dear,

You are absolutely right .

So, in this case create Tax Code V0 as with  " Nil Tax " and maintain Condition record with Customer Group 1 ( Customer Group 1 having your Original Customer ) then when you raise sales order for that customer system looking into condition record so already you maintained Condition record Zero amount for V0 Tax Code .

Note :I could not understand properly ,sorry on this mistake .

Thanks,

Naren