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Changes in excise & tax rates after PO release

Former Member
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Hi Gurus,

We have the following scenario in our client :

i) all taxes, frieghts & excise gets inventorized during goods receipt. We can handle this either through condition types or through tax codes (non-deductable)

Issue is how to handle excise & tax rates changes after PO is released.

ii) Can this be handled outside CIN module because our client is a PSU and in utility sector and does not book any CENVAT/MODVAT credit

iii) is there any way to calculate LD (late delivery clause) based on condition type ?

Your valuable inputs is highly appreciated

Regards,

Sid

Accepted Solutions (0)

Answers (3)

Answers (3)

BijayKumarBarik
Active Contributor
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Hi,

You have following options:

Option-1 😆 PO released but no GR or IR transactions done (now tax rate changed)

You can change PO by changing tax code with tax rate details in PO and again release PO for doing further transactions GR and IR.

Option-2 😆 PO released and GR done but no IR transaction done (now tax rate changed)

Just do MIRO and then pay to vendor soon.

Option-3 😆 PO released but also GR and IR transaction done (now tax rate changed)

Immediately pay to vendor

Option-4 😆 PO released but also GR and IR transaction done (now tax rate changed)

Again got invoice from vendor, then do carry out subsequent credit/debit

Option-5 😆 PO released but No GR and IR transaction done (now tax rate changed and you want new tax rate in GR and IR from 01.04.2012)

Now maintain validity period for tax code with tax rate with respective tax condition types:

For example:

Tax code------------------From date--------------To date

T1---------------------------01.04.2009----------31.03.2012

T1---------------------------01.04.2012-----------31.03.2013

Regards,

Biju K

Former Member
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Dear Bijay

This might be the probable solution for this scenarion, but where do you maintain the validity period for Tax Codes. I could not find it in FTXP.

Thanks and regards

Sid

ajitkumar
Active Contributor
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As far as i know,in ECC6, it is not possible to maintain validity periods for conditions thru FV11

BijayKumarBarik
Active Contributor
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Hi,

If your all tax condition types have access sequence JST1 instead of MWST and then you can maintain the tax condition master records in t.code: FV11 for all the condition types w.r.t Plant, Vendor, Material, Tax Code for with Validity Period.

Regards,

Biju K

ajitkumar
Active Contributor
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yes i meant MWST

Former Member
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We are trying to avoid using CIN and looking for some work around like PO version management etc.

Former Member
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Hi,

If you want to avoid CIN , you can create two custom condition type for manual entry in your pricing procedure calculation schema for exise and vat and frame the required calculation type.

Make necessary customization for changing PO after final release(status indiactor). Now whenever you feel you can change the condition value in the PO manually. If your changes are after GR , the price variance will go to stock account in case of MAP and PDA in case of SP while doing MIRO.

To track the changes you can get it through

PO-->Envirionment-->Item changes w/o activating Version mgmt.

Regds

PraksB

ajitkumar
Active Contributor
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if you are using tax codes, if the invoices are booked for all the GRs or GRs are done for all the invoices booked, you can change the tax rate  for the tax code and it will reflect in the PO.

GR and Miro will take the real time rates at the time of txn

Former Member
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Dear Ajit

Having both the Excise and CST/VAT in the same Tax code seems to have the following issues.

1) The revised changes to the Tax code will have Retrospective or Prospective effect? If it has Retrospective effect on the items delivered before the Excise rate revision during MIRO it may be incorrect from Business point of view.

2) CST/ VAT is also charged on Excise amount.

Thanks

Sid

ajitkumar
Active Contributor
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for both MIGO and MIRO tax rate  present at the time of transaction is considered.

so you will have a problem if you have done GR, change the tax code and then do MIRO. but if you have booked all the invoices for the GRs and then change the rate, this new rate will come in the GR. when you book invoice that also will be with the new rate.

Former Member
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You should create condition types and not rely on tax codes as it will be retrospective.

In your case, if GR is done wth excise as 10% and invoice arrived late, by that time tax rates got changed, than also invoice should be processed at 10% is your requirement.

If you maintain condition type than at the time of GR based on the condition type liability will be created and irrespective of any change in PO after GR (tax rate changed to 12%), while posting MIRO for this GR, it will show you liability as per 10% only which was posted (provided you are using GR basd IV).

Hence, you need not worry about the whether invoice is pending or not.

Regards,

Dakshesh

Former Member
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Siddhartha Das wrote:

ii) Can this be handled outside CIN module because our client is a PSU and in utility sector and does not book any CENVAT/MODVAT credit

If all your duties are inventorised then create them as a conditions in MM pricing procedure.

Former Member
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We have already tried this option but the issue is if there is a revision in Excise or Tax rates after the PO is released how to modify the inventorised amounts during MIGO or MIRO. Moreover most of the orders are delivered and billed in several lots spreading out to more than one fiscal year.