Multiple tax calculation on a Single Line of Order/billing

[Avnish_Goyal]

Dear All,

I have a business situation that requests me to use handling and freight as condition types in the SD pricing procedure. We are adding freight and handling as condition type on the first line of the order/billing line item.

I also have a business requirement to calculate tax on freight and handling separately from the product price in line 1 of the order/billing.

As per standard SAP, only one tax code/call is allowed per line. How can I calculate different taxes on product vs Freight assuming both product price and freight charges are on line 1 of the order/billing?

Please note that we are using Vertex for tax calculation.

Thanks

Avnish

[PhanikumarV]

Have you tried exploring the second tax condition type on the step of Freight in the respective pricing procedure??

""As per standard SAP, only one tax condition is allowed to be assigned per line"""

if this is correct-How system is calculating CGST & SGST in a single line??

(just to share/correct you that your thought need to be reviewed again 🙂

[Avnish_Goyal]

Dear Phanikumar, Thanks for your reply and advice. I believe that you did not understand the problem statement completely. I also did not explain it clearly in the original post. I have edited the original post as well. Let me explain in more detail:

Customers are charged for Freight and Handling fees alongside product costs. The SD/OTC team wants to create Freight and handling Fees as condition types within the SD pricing procedure instead of charging them in a separate line on the order/billing documents. The Tax team wants to calculate tax separately for Freight and handling fees vs product prices.

Currently, SAP does not offer a standard solution to have multiple tax calculations on a single line of the order/billing documents. In countries with various taxes at different jurisdictional levels such as federal, state, county, city, etc., these taxes are part of different SD tax conditions linked to a single tax code (in other words 1 tax calculation). In standard SAP, only 1 tax calculation can be passed to FI with 1 tax code for posting at a line. This is true even for complex tax countries like India, Brazil etc. SAP localization solutions for these countries also do not handle this problem. Yes, if you have multiple lines in the order, you can pass different tax calculations with different tax codes. Due to the above limitation, we can’t have multiple tax calculations from 1 line of order/billing in standard SAP.

I was thinking of creating an additional manual condition type with a fixed tax rate for freight tax. However, the problem statement is that it won’t flow the tax information into SAP tax tables and needs additional manual effort to add it to tax reports.

We are using Vertex for our tax calculation. I know Vertex has a solution for splitting freight from the line price while sending data to Oseries for calculation but it adds both taxes back once receives the results from Oseries. So it solves the calculation problem but not the reporting.

Thanks Avnish