Knowledge Management

Question:
dear MMexperts:
when I create PO, the price includes tax, who knows how to split tax from the price automatically when make IV?
thanks a lot
Answer:
Hi Jacky,
As the standard of SAP, the valuation price in the PO shall be net and any possible tax will be maintained in the Header Pricing Condition of the PO. Payment will then be made via LIV with reference to this PO. How did you maintain your PO's price?
Cheers,
HT
Answer:
Hi HT,
Thanks for your reply.
Now purchasing guys need to create service PO. the vendor only provides price with tax. After the fin. department receive the invoice, they will decide how much the tax is. For example, Pur. guys create a PO with price 117. then fin. department will receive a invoice with price 117. they decide that the tax ratio should be 17%, so they record 100 as net price and 17 as tax.
The stupid way we are using is, if the po is decided to calculate tax, the PO price has to be changed from 117 to 100. then the invoice will be verified with tax ratio 17. Is there much easier way to deal with the issue?
thanks a zillion
Answer:
Jacky
I think you should be reviewing the type of purchasing process that is being used for this process. I suggest using the Estimated order / Blanket order. This provides you the flexibility that you seek.
Aj
Answer:
Hi Jacky,
It surprises me quite a lot that only the Finance Department can decide on how much the tax shall be. As far as I am concerned, the tax rate (VAT, for instance) is promulgated and fixed by the Government body and it is not difficult to let the Purchasing staff know how much the tax rate shall be applied at the time of creating PO. Furthermore, why don't you ask the Purchasing staff to check, during the RFQ process, the net price and tax portion with the service vendor prior to his/her maintenance of the Service PO?. I am quite sure that the vendor is much happy to provide you with such legal information.
Anyhow, if you would need further clarification, please feel free to contact me via e-mail - ha.tran@holcim.com
and I am much pleased to help you.
Cheers,
HT
Answer:
Hi HT,
I do agree with your last comments. Maybe life will be much easier if everything goes in normal way.
If user insists inputing price with tax, could the system be configured to work in such way?:
Create PO with price 117(tax included), tell SAP somewhere the tax ratio is 17%, then the system can post 117 to AP, 100 to inventory, 17 to tax.
Cheers,
Jacky
Answer:
Hi Jacky,
As long as the purchasing staff knows that the tax rate is 17%, then SAP can well handle it. What you have to do is to maintain 100 in the unit price of the Line Item and the 17 Tax Value will be maintained in the Header Pricing Condition of the PO.
Cheers,
HT
Answer:
Hi HT,
In other words we may say that the price shouldn't include tax, the system can't be configured to split the tax from the total price. Is that right?
Regds,
Jacky
Answer:
Hi Jacky,
What I meant was that the valuation price that you fill in the 'Net Price' field of the Item Overview of the PO is free of tax and any additional tax (if any) shall be maintained in the Header Pricing Condition.
Cheers,
HT
Answer:
I think it depends in which country you implement. There are countries with output tax (the tax is excluded from the price and later added) and countries with input tax (the tax is included in the price and has to be separated later). It looks like you are implementing in a country with input taxes.
SAP can handle both very well, just change your price procedure accordingly.
Hope this helps.
Answer:
Yes! the customer inputs the price with input taxes.
But I still don't know how to configure. I ever just add a condition(MWST:input tax) into the schema, the system only calculate a tax based on the total price, that's not right. Could someone give me some ideas?
Thanks a lot