SAP MM Purchase order with GST only for delivery cost (Clearing charges)

[former_member611310]

We have a scenario in the purchasing process with GST, A purchase order is created for the vendor and material combination, The GST for the material value is ZERO.

But there is a delivery cost (Clearing charges) for the same vendor. GST is applicable for this Delivery cost. I need to calculate the GST only for the delivery cost in the Purchase order Taxes Tab and not for material cost.

How we can achieve this. Please provide

Example

Purchase order material value: 10000 INR

Delivery Cost (Clear.charges) : 1000 INR

GST tax (18%) for Del.cost: 180 INR

Regards,

Ekambaram

[BijayKumarBarik]

Instead you can create a routine and assign to GST condition type in your tax procedure. Discuss with ABAPer for designing a routine for your requirement and formulae in it.

For more refer VAT with routine

[former_member611310]

Hi Sanil Bhandari,

Please suggest, How can I create second line item for this requirement.

If I need to create second line item I do not have material quantity and price. Because I have provided the same in first line item itself in purchase order.

Best Regards

Ekambaram

[sanilbhandari]

Hi ekambaram

You can create a purchase order with two line items, one with the zero rated GST Tax Code and another for the delivery cost. For the second line item related to delivery cost, assign a tax code with 18% GST.

Now when you do the MIRO, make sure that the correct tax codes are assigned and you should have the right tax postings as you expect. This is how standard SAP is designed to work in PTP area

Thanks & Regards

Sanil Bhandari

[former_member611310]

Hi Sanil Bhandari,

Please suggest, How can I create second line item for this requirement.

If I need to create second line item I do not have material quantity and price. Because I have provided the same in first line item itself in purchase order.

Best Regards

Ekambaram

[sanilbhandari]

Hi ekambaram

I am not sure, if you have a freight condition also set up as part of your pricing. I am attaching screen shot of a PO where we have a material which also has a freight condition in terms of value included.

Now when I did the GRN for the above PO which has material cost and freight cost, the accounting entry created was as below:

Now when I do the MIRO for the same, the below is the invoice which captures both the delivery and cost of material. As you can see I have assigned in MIRO for the material cost a tax code with GST of 0% and for freight cost, a tax code with GST of 18%

Hope this helps

Thanks & Regards

Sanil Bhandari

[sanilbhandari]

Hi ekambaram

I have attached the other screen shots as well. I am not able to attach more than two screen shots in the comment some how

[sanilbhandari]

Hi ekambaram

Attaching the last screen shot of the pruchasing schema

Thanks & Regards

Sanil Bhandari

[sanilbhandari]

Hi ekambaram

You can also refer to the best practice to set up procurement of goods for India in the below link:

https://rapid.sap.com/bp/#/browse/scopeitemversions/J45/S4CLD/2011/IN

Here you will find the test script and process flow related to the same.

Thanks & regards

Sanil Bhandari