SAP COPA Revenue Split

[former_member746589]

Hello dear members,

During export transactions the revenue which appears in COPA includes export tax.

At the request of the business, COPA should be reduced to an income export tax.

So, the export tax does appear as cost in the COPA.

EF = ((CP - EE) - DP)*30%

EF- Export-related fees

CP - Contract (selling) price of products during export

EE - Expenses related to export

DP - Domestic wholesale price

Example: CP = 854053.55/1765.354 = 483.79

EE + DP = 413.10

EF = (483.79-413.10 )*30 % = 21.21 USD for every 1 ton(1000kg)

21.21*1765.354 =37443.16 USD => total export tax

Therefore, the income in COPA should decrease to 37443.16 USD

How can I deal with it ? Please I am looking for any suggestion

Regards

Kanan

[djchoosy]

Hi, Kanan!

Kindly state here the environment you're using (e.g. ECC 6.0 or S/4HANA) and what type of CO-PA you're utilizing (e.g. Cost-based or Account-based or both).

You may also consider the following when designing on how does the business recognize this export tax:
1. Is this export tax acts like a VAT/GST that you needed to set-up an Output Tax Code? Because if yes, the Income has to be net at the time it is posted in a document separating the line item of Income GL and the Output Tax GL, and hence this Output Tax GL is to be reported on the Balance Sheet and hence, not on CO-PA reports.
2. Is this export tax acts like an Income Tax and recognized as an expense that is to be deducted from the Net Income Before Tax and reported as Non-Operating Expense and hence, discretion of the company if it is to be allocated to different profitability segments?
3. If the requirement of the business is somehow related to #2 above, you may consider creating a custom-made CO-PA report (via the Report Painter) where you can tweak the form and input the formula/formulae where 30% of value field EF will be calculated.

You may want to check this out:
Report Painter -COPA report configuration | SAP Community

Thanks!

Dryan