VAT on Freight Condition

[Former Member]

Hi MM Gurus,

We are facing one issue related on VAT on Freight.

As material is related  to excise.

We want

Base Price      : 1000

BED               :   120

ECS               :      2

SES                :      1

SubTotal         :   1123

Freight           :    100

SubTotal         :   1223

VAT  (5%)        :   56.15

G Total           : 1279.15

How to map this thing in SAP???..though Routine..

I have create one condition type for Freight  in pricing Procedure and one condition type in taxation procedure.

How to interlink this two condition through Routine.

We are using TAXINN procedure..

Regards

Amit

[ajitkumar · Accepted solution]

Does your freight go to the same vendor as material? normally freight is vattable in India only if it is appearing in the invoice. remove the accruals, ( use freight type condition ) and in subtotals field enter 6. ( KZWI6). in mm pricing procedure. in tax procedure, your tax condion should have bas type 363 and calc type 370 for deductible and 371 for ND; attach 362 to BASB to fetch KZWI6

[Former Member · Accepted solution]

Hi Ajit

Very very thanks for guiding this issue..

The solution which you told is exactly correct and working properly.

The correct answer is

Create new condition type for Freight (On which VAT is applicable).(Accural unticked)

Put subtotal "6" for the condition type.

In Taxation Procedure

Attach 362 to BASB (Base Amount )in BasType.

and For VAT condition type Viz JVRE and JVRD BasType "363"

and CalType 370 and 371 for Deductible and non dedectible..

now proper VAT is appearing in system.

Regards

Amit

[Former Member]

Could you please guide me, i too have similar kind of concern.

Here i wish to calculate the VAT % based on the only Fright value which is there in condition tab without adding other taxes.

Ex.:

Freight Value in Conditon tab = 650 INR

VAT 5% = 32.5 INR (Need to be displayed in Invoice tab, after calculating 5% VAT on 650 INR which is there condition tab)

for this i used the below condition types....

Attach 362 to BASB (Base Amount )in BasType.

and For VAT condition type JVRD BasType "11" and CalType 370.

please suggest me, how can i pick the fright amount (in condition tab) for calculating VAT % in Invoice tab. Thank you.

Regards,

GMK.

[Former Member]

HI

Create new condition type for Freight (On which VAT is applicable).(Accural unticked)

Put subtotal "6" for the condition type.

In Taxation Procedure

Attach 362 to BASB (Base Amount )in BasType.

and For VAT condition type Viz JVRE and JVRD BasType "363"

and CalType 370 and 371 for Deductible and non dedectible..

now proper VAT is appearing in system.

plz revert ...

Regards

Amit

[Former Member]

VAT is displaying for the sub total amount of Base amount + other taxes. Here my requirement is need to calculate the VAT on fright value (or Discount value) which is there in condition tab. Below are the snap shots for my requirement. could you please look into these and advice me.

and if possible, tell me, in which routine VAT % is calculating?

[Former Member]

It means in your case the VAT is applicable only on Freight (not on material cost)..???

[Former Member]

Yes, just want to calculate VAT on Fright or Discount amount which is there in Condition tab.

[Former Member]

Dear Sir

The Scenario is too much new,,

please open new discussion for the same. As this thread is closed. (in Search it is not coming)

So that everybody can discuss about the same. I also want to know the same..

surely u will get answer for the same.

Regards

Amit

[Former Member]

Dear Amit,

certainly i'll do that...and thank you for time and replay.

Regards

GMK

[Former Member]

Hi

Can anyone tell anyone logic of Routine for above process?

Regards

Amit

[ajitkumar]

There is no need for any additonal routines. This is quite a standard process.

[nitesh_gawas]

Dear Amit,

I understood your scenario. You want calculate Vat on base price + excise duty and Freigt amount also. You have to change your PO and tax pricing procedure.

1)Create Freight conditions in PO pricing.

2)Add the  freight condition in PO pricing procedure before NAVS condition.

Assign subtotal routine 6 to freight condition.

Tax Procedure.

1)Same freigt condition create your TAx procedure. Which tax procedure u r using TAXINN or TAXINJ?

2)Add the Freigt condition in tax procedure as stastical before JVRD and JVRN condition. No need to assign any routine here.

3)Assigne calculation routine 510 and base routine 363 to your VAT contdition.

Please check above setting. Your Scenario will definately work. If any issue, Please revert.

Regards

Nitesh

[Former Member]

Hi Nitesh

I have done the same..

I have Assign Subtotal Routine 6, Cal Rou : 510 and base Routine 363 to that condition type,

also created new condition type in taxation procedure. (Same as MM pricing procedure).

but that value is not appearing in taxation procedure (in condition type).

Now Freight value reducing from base value.

Regards

Amit

[nitesh_gawas]

Dear Amit,

Go to the invoice tab- and check your calculation coming correct or not?

Which value not showing in Taxation proceddure?

Please expedite the details.

Note:-Same scenario is working fine in my customer side and i configured this in last april month.

any help Please reveret.

Regards

Nitesh

[Former Member]

Dear Nitesh

I have create the same condition type in MM pricing procedure and taxation procedure, and also assign the routine No.which you told earlier.

But he value is not appearing in invoice tab of PO ,,(in respected condition type viz. ZFVT),

I think something is missing.!!

Thanks

amit

[nitesh_gawas]

The Freight condition wont  show in Invoice--Taxes tab.

Because, The freight amont enterd in PO pricing  and it is routed for Vat calucaltion.

1)tell me one thing- the calculation is coming correct or not?

2)The net amount with all taxes is correct or not?

[Former Member]

No taxes amount is not correct..

The base value in getting reduce by the amount which is there in condition type.

and VAT is also get reduce because of this.

Thanks

amit

[nitesh_gawas]

Please Create Freigt condition as above in PO pricicng procedure

Also check the TAXINN procedure and also check JVRD and JVRN condition.

[Former Member]

Thanks Nitesh

for guiding me to solve this issue..

Taking effort to send me screen shot..

your answer is also correct.

so very very thanks

Regards

amit

[Former Member]

hi Amit,

Pls note below :

- You have created fright cond.in MM prc. Its ok.

- You have to create Three new cond. for TAX procedure.

      1 for  - VAT Calculation base-make the same statistical.

      2 for VAT % - Copy the same from JVRD.

      3 for Freight condtion charges which are as of MM pricing prc in cond. tab.

-Do proper "classify condition type" setting for VAT condition.

-You want to fetch the freight value in tax procedute to calculate VAT.

For this you can do this in two ways

     - With routine - you have to  tell logic to Abaper for this to fetch value of Freight cond.to Tax prc conditon no. 3

     - W/O Routine - make a suse of :reference cond type " and "application" for tax prc condition 3. in OBQ1.

- You can also make condition record for VAT condition in FV11.

- Insert Ref. freight cond, base for VAT calculation & Final VAT calculation in tax prc.

Hope this will help you.

Regds,

Nilesh

[Former Member]

Hi Nilesh

Actually we thought to go for (With Routine..). But we are unable to develop the proper logic for the same.

can u please tell us briefly..what is the logic of  Routine.?

Where that routine should assign ?(Tax procedure or MM Pricing Procedure.)

Thanks a Lot

Amit

[Former Member]

Hi Amit,

You can remove the accrual mark in fright condition then the value of fright will be added to your net price then your requirement will be solved.

Go to m/06

select fright condition, then remove the accrual key in bottom of condition type.

Regards,

Anjali.p

[Former Member]

Hi Anjali

If I remove the accrual tick then whole freight will add to basic price and Excise is also get calculated on basic price..on Freight Excise not applicable.

Regards

Amit

[Former Member]

Hello Amit,

VAT @ 5 % is calculated on Basic + ED or Basic + ED + Frieght?

Clarify.

Thanks

ig

[Former Member]

yes...VAT (5%)is Calculated on (Basic Price+BED+ECS+SES and Freight).

Regards

Amit