Difference between Tax Procedure and Pricing Procedure

What is the major difference between tax procedure and pricing procedure. Can any one explain in detail.

Procedures are used, for example, in the following applications:
Pricing in sales and distribution
Applying overhead in Product Costing (costing sheets) and for CO internal orders
Calculating accrued costs in Profitability Analysis
Output control (printed confirmations, EDI messages, electronic mail)
Account determination
Calculating taxes on sales/purchases
Calculating accruals in Cost Center Accounting
Pricing for resource planning

Similar Messages

  • What is difference between tax procedure and pricing procedure?

    Dear Gurus,
    Would you please let me know the difference between tax procedure and pricing procedure?
    Why it is necessary to maintain them separately?
    Thanks in advance,
    Ranjan

    Hi
    Tax procedure settings
    OBBG - Assign Country to calculation procedure.
    OBCO - Specify structure for Tax Jurisdiction code. For country like U.S.A.
    LG -> character length of first level of hierarchy within your tax jurisdiction code structure.
    LG -> Second level of hierarchy as above.
    LG -> Third level of hierarchy as above.
    LG -> Fourth level of hierarchy as above.
    TX -> Tick if you want the system to determine taxes on a line by line basis instead of determining them on a cumulative basis
               per tax jurisdiction code.
    OBCP - Define Tax Jurisdiction code
    Dil -> Tick if you do not want tax amounts included in the based amount used for calculating cash discounts.
    Txl -> Tick if you want the cash discount amount deducted from the base amount that is used to calculate taxes.
    FTXP - Define Taxes on Sales/Purchases Code.
    OBCL - Allow Tax codes for non-taxable transactions.
    In MM module, pricing procedure is used during RFQ and PO creation. Total value of material based on all addition and subtraction like discount, surcharge, tax, freight, etc. In this we are defining pricing procedure and linking to vendor and purchase department through the virtual schemas. 
    Following steps for pricing procedure as,
    1. Define conditions.
    2. Define pricing procedure.
    3. Define virtual purchase organization and vendor.
    4. Info Record.
    Regards,
    Raman

  • All differences between a function and a procedure.

    What are All differences between a function and a procedure.

    What are All differences between a function and a procedure.This is basic procedural programming fundamentals that you should learn at school.
    A function is a procedure that returns a value (of the type defined in the function declaration) using the RETURN statement at the terminal point of the processing code.
    That's the only difference.
    In terms of SQL, procedures cannot be used within SQL and functions can, but only if the function does not contain any OUT or IN OUT parameters and the return type is of a supported SQL type.

  • Difference between dunning area and dunning procedure

    Hi,
    can anybody explain the exact differnce between dunning area and dunning procedure
    why we define both n how we use them
    what is the differnce between dunning by dunning area and dunning by dunning procedure
    i would be very much thankful if  can get the exact differnetation

    Dunning Areas are organizational units that you use to process the dunning program for example, by division, or sales organization.
    You use dunning areas if several organizational units are responsible for carrying out dunning within a company code. These organizational units are represented by dunning areas in the SAP System.
    You can have either One dunning procedure for One dunning area or several Dunning procedures per dunning area.
    Dunning procedure actually defines how business partners are dunned.
    The dunning program duns open items in customer and vendor accounts if the overdue items result in a debit balance. When you configure the dunning program, you can specify additional criteria for determining whether accounts or their open items are to be dunned.
    Hope it helps.
    Thanks,
    Nandita

  • Difference between tax determination procedure and pricing procedure....

    Hi,
    What is the use of Tax determination procedure when we maintain tax condition types in pricing procedure.(and condition records will pick the correct tax rates).
    My question is that, can we trigger an o/p tax without maintaining a tax procedure at document type level?If yes then what is the basic use of tax determination procedure in SAP?

    Tax procedure is being used in the Country Version India Add-On and requires to maintain additional data in the Excise Rate Maintenance transaction, J1ID. Each of the excise duties in the tax Procedure Tax procedure has its own condition types, and each condition type is assigned to a formula in the standard SAP. This formula instructs the system to calculate the excise duty using the data that have been maintained in the Excise Rate Maintenance transaction.
    FTXP for a country is determine from TAX procedure assign to the country.
    [Entering content frame formula-based excise determination (LO)|http://help.sap.com/saphelp_470/helpdata/pt/e6/2adbdec6974f4c9f35d732b108d09e/content.htm]
    [Formula-Based Excise Determination|http://help.sap.com/saphelp_47x200/helpdata/de/20/53bfce14ff11d4b5b1006094b9ec21/content.htm]
    [Condition-Based Excise Determination|http://help.sap.com/saphelp_470/helpdata/ru/08/34bc3cdc322866e10000000a114084/content.htm]
    Thanks & Regards
    JP

  • Relation between Tax procedure and Pricing procedure

    Dear All,
    I would like to get more clarity on Tax procedure, Pricing procedure.
    a) Why do we have Tax procedure and assigned to Country?
    b) If the tax procedure has been created and assigned to Country-IN (in FI module), then why do we need to create pricing procedure with same condition type for purchasing in MM module?  We are even creating lot of pricing procedure for Sales in SD module.
    Regards
    Manivannan R

    Hi
    Tax
    During SD document transactions, tax calculation procedure TAXUSX is only relevant to determine the tax liability accounts for output sales tax. Notice that in pricing procedure RVAXUS, the condition types XR1 - XR6 carry the tax rates and tax amounts - resulted from the external tax system calculation - which is posted to tax G/L accounts. However, the tax accounts are not specified in the pricing procedure but rather in the tax calculation procedure.
    Tax codes are the link between pricing procedure and tax calculation procedure.
    Pricing
    The primary job of a pricing procedure is to define a group of condition types in a particular sequence. The pricing procedure also determines:
    Which sub-totals appear during pricing
    To what extent pricing can be processed manually
    Which method the system uses to calculate percentage discounts and surcharges
    Which requirements for a particular condition type must be fulfilled before the system takes the condition into account
    Example
    Example of a Pricing Procedure
    If a sales department processes sales orders for a variety of foreign customers, the department can group the customers by country or region. A pricing procedure can then be defined for each group of customers. Each procedure can include condition types that determine, for example, country-specific taxes. In sales order processing, you can specify pricing procedures for specific customers and for sales document types. The system automatically determines which procedure to use.
    Pricing Procedures in the R/3 System
    The standard system contains pre-defined pricing procedures, which contain frequently used condition types along with their corresponding access sequences. You can, of course, modify these procedures or create your own from scratch.
    Creating and Maintaining Pricing Procedures
    You create or maintain pricing procedures in Customizing for Sales. For more information on creating pricing procedures, see the online Implementation Guide for Sales and Distribution.
    To reach the pricing procedure screen from SD Customizing:
       1. Choose Basic Functions
       2. ® Pricing ® Pricing control ® Define and assign pricing procedures.Select the transaction that you want to execute.

  • Link between credit management and pricing procedure

    Hi,
    I want to know the link between the pricing procedure and credit management,on basis of that system determine that credit value is exceeded at the time of sales order.
    Regards
    Prabudh

    Hi,
    In pricing procedure there is a field called Subtotal.
    SUBTOTAL
    A key is assigned from the drop down menu; this can be used
    by the system in other area like Sis for reporting purpose
    also
    As Pricing comes under billing and In this there is close link with the SIS which is Sales Info System. Subtotal fieldand Net value notifies the SIS about the value and thus calculates the Credit Check.
    Hope this will help.
    Thanks,
    Raja

  • Thailand Tax and Pricing Procedure

    Hi All
      Please tell me if any of you have worked on Country Thailand Version ?or anybody have SDrelated stuff in thailand.
    I dont have much information about tax procedure and pricing procedure in Thailand .If anybody have any documentation on this then please send me on my mail id <b><REMOVED BY MODERATOR></b>, now i am going through www.help.sap.com ,but i am not getting much information ,so plz send me documentation if you have
    Thanks and Regards
    Bhushan Kolte
    Message was edited by:
            Yathish K

    Hi All
      Please tell me if any of you have worked on Country Thailand Version ?or anybody have SDrelated stuff in thailand.
    I dont have much information about tax procedure and pricing procedure in Thailand .If anybody have any documentation on this then please send me on my mail id <b><REMOVED BY MODERATOR></b>, now i am going through www.help.sap.com ,but i am not getting much information ,so plz send me documentation if you have
    Thanks and Regards
    Bhushan Kolte
    Message was edited by:
            Yathish K

  • Difference Tax and Pricing Procedures???

    Hii experts
    some body can tel what is the difference between tax and pricing procedures?
    Pricing excise duties will not come or how the scenario..??
    Some explain me without any ling here, it will be thankfull.
    Thanks
    SAP-MM

    HI,
    Basically why we have taxing procedure is that its always country specific that means it can be any vendor selling any material but he has to follow some government regualations whcih is what will be given in the taxing procedure that sholuld be the same for all customers it will be different if the customer is foreign.
    The pricing procedure is where we carry out pricing that is vendor specific here we can have different prices for different vendors depending on what he supplies and ETC.
    Regards
    KK

  • Difference between a "stored procedure" and a "procedure defined in package

    Hi,
    Is there any difference between a "stored procedure" and a "procedure defined in package"
    thanks in advance

    http://download.oracle.com/docs/cd/B19306_01/appdev.102/b14251/adfns_packages.htm#sthref779
    Steps
    http://www.oracle.com/pls/db102/homepage
    http://www.oracle.com/pls/db102/search?word=stored+procedure+package
    5th result

  • Difference between tax amount shown on VAT report and the invoice

    Dear Friends,
    We observe that there is a difference of rounding off between the tax amount shown in the invoice and the one shown in the VAT report.
    We have to manually adjust this tax amount since the Tax authorities do not accept any difference in the VAT report and the Invoice.
    Please advise as what could be done to solve this issue.
    Rgds,
    Kunal Vichare.

    Hi Satya,
    There are 2 things: Pricing Procedure and Tax Procedure.
    Pricing Procedure tell system about the what and how the price to calculated for material in PO. In this pricing procedure the conditions NAVS / NAVM as pertainin to tax applicable on the PO price. These conditon display the tax. The tax is calculated based on tax procedure. Tax procedure acts as a master and there is one tax procedure for one country. For this tax procedure there are tax codes defined. Tax codes means using the same tax procedure but changing value of various conditions and omiting some if required.
    Eg. TAXINN is tax procedure for India. Based in this procedure many tax codes are defined for 12% vat, 6% vat , no vat etc.
    So what kind of tax will be applicable on the PO is governed by tax code which is mentioned in Invoice tab (tax code) its a 2 character code.
    Based on this tax code taxes are calculated on PO net value and then the tax amount is displayed in pricing procedure by conditions NAVS / NAVM.
    MWST is condition for Input tax. If you are using tax code then MWST is not to be used.
    Tax code becomes useful while doing MIRO as there is an option of inserting tax code. So the tax on PO net value will be calculated automatically.
    Regards,
    Vishal

  • J1ID and Pricing Procedure

    Hi,
    We use TAXINJ procedure for our company for which Excise Rates are maintained in J1ID.
    Also we maintain Pricing Procedure in which different tax condition types are used.(Eg: UTXJ,JMOD etc.)
    IMG Notes mentions that
    When you create a sales document, the system determines the excise duties and sales taxes using the pricing procedure (not the tax procedure).
    If it is the case please clarify me whether the system takes the data from J1ID or Pricing Procedure to calculate taxes.If it takes from J1ID then what is the use of maintaining Pricing Procedure and vice versa.
    Please share your valuable inputs.
    Regards,
    Phani Prasad

    Hi
    In J1ID, Material, plant chapterid combination is maintained and for each chapterid the applicable rate is maintained for calculating Excise Duty. Also the status of the customer with regard to Excise is also maintained in J1ID under Excise indicator for Customer. Based on these combinations, applicable excise duty/rate on the transaction can be derived. Pricing procedure will guide in the calculation where the applicable rate is maintained at the condition record level. It will also help in calculating the applicable sales tax on the transaction after the calculation of Excise duty.
    Hope it clarifies.
    Regards,
    Lakshmanan Krishnan

  • What's the difference between tax account in FTXP and OB40

    Hi all,
    There are two tax accounts link to same tax code in FTXP for different company codes, but in OB40 I only can assign one account to tax code. What's the difference between tax account in FTXP and OB40?
    Thanks in advance.
    babyyw
    Edited by: babyyw on May 5, 2010 8:21 AM

    Hi,
    FTXP no need to create a request and it is easy but in OB40 system will ask you create request. and another thing is in FTXP it is at country level but in OB40 it is at chart of accounts level.

  • Difference between SAP PSCD and tax and Revenue management

    Hi All,
    I am new to SAP industry solutions for public sector and am actually trying to understand the new systems. Can anyone please tell me the difference between SAP PSCD and SAP Tax and Revenue management ? Please revert.
    Thanks in advance,
    Shakuntala

    Hi Shakuntala,
    PSCD is an industry add-on on top of SAP ERP FI-CA (Contract Accounting), which is part of SAP ERP Core.
    Tax & Revenue Management is a Public Sector industry solution, which utilizes PSCD to enable some of its key processes (e.g. account management and collection management). However, TRM as a business solution also make use of other modules and systems (e.g. CRM).
    The initial development of PSCD was strongly driven by Tax&Revenue Management, therefore people usually have hard time to differentiate between the two terms. But now PSCD is also used by and enhanced for other SAP Public Sector solutions like Grantor Management or Social Services.
    Best regards,
    Xiaoi
    Edited by: Xiaopeng Tan on May 22, 2009 5:27 PM

  • What is basic difference between alter any & bebug any procedure sys privs?

    Hi
    I would like to know what is the basic difference between alter any & debug any procedure sys privs? Under which circustances, these will be granted?
    Regards
    Ariz

    ALTER ANY is the privilege to recompile. The DEBUG privilege displays information on all SQL statements executed by the application generated by debug mode.
    I have never found any value in creating a procedure in debug mode though I have found a lot of procs compiled in debug mode that needed to be recompiled.

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