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

Similar Messages

  • 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

  • Tax and pricing procedure

    hi sapers
    what is meanning of requirement and alternating condition base value in pricing and tax procedure.thanks

    hi,
    this used for SD/MM
    Requirement:
    It is a routine that is written by an ABAP consultant according to the business requirement.
    By defining Requirement in condition technique we can restrict the access of condition type.
    To understand the concept, we will take the example of the Rebates. Rebates are to be included during the billing document processing and not in the sales document processing. As rebates are given on the delivered quantity and not on the ordered quantity (in case of cut-off period for rebates).
    For rebates we use the condition types BO01 to BO05, and in the Requirement column we give the value 24 which is "Only in Billing Document".
    This Requirement will ensure that these condition types will appear only during the billing document processing.
    If new Requirements are to be defined we follow the procedure given below.
    Go to T.Code: VOFM. - Maintain Requirements & Formulas
    Click on the "Requirements" in the top menu and then click on "pricing".
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    And we assign the application type like V - Sales/Distribution etc.
    AltCBV - Alternative formula for condition base value:
    Formula for determining the condition basis as an alternative to the standard.
    It is again a Routine that is written by ABAP Consultant.
    It is used as a basis to calculate value of the condition type instead of using it from the "FROM" column.
    Ex.: Freight - KF00.
    Freight is calculated based on weight, volume etc. and not on the base price. In pricing there is no entry of weight from which the value can be referred like we do for discounts using base price. We have to get the value from the Material master.
    In this column we can mention the value as 12 - Gross Weight or 13 - Net Weight.
    During pricing, the system will consider the value that is mentioned in this column and determine the freight based on this value.
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  • 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

  • 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

  • Relation B/W tax and pricing condition types

    HI friends
    I want to know relation b/w tax and pricing condition types.
    Here, i think we are giving relation in pricing procedure, how we are giving that relation, what is that mean.
    How sys will carry the values from tax condition types to pricing condition types.
    plz give me the details early.
    with regards
    lakky

    Hi...
    Actually in priciing procedure it is only sequential arrnagment of COnt type could be price, dicount or tax ... so that system calculates as process given by client.
    now when u see tax condition types .. they are also created in FI and also in Sd with same controls and linked via the account key...
    Account key MWS, MW3 are created in Fi and only used in Sd but azccount keys like ERL, ERF, ERS are created in Sd and used for account det in VKOA ...
    also MWS, MW3 used in VkOA but are used in TAx procedure also and are assigned G/L in Tax code ...
    now when u c the pricicng in a Sd doc .. sales order then all totals calculated and net price given and below that a Tax total given ... how system calculates tax totals is that in the tax conditio type in condition category .. we give Taxes as D so that all cond types with this cond catefory gets added and totalled to this tax total figure ..
    Reward if helpful
    Krishna

  • Difference among different pricing procedure

    Hi,
    I want to know that, what is the difference among different pricing procedure,Like
    Standard,return,sample,scrap and credit memo.
    Please reply soon.
    Regards
    prabudh

    Hell tiwari,
    <b>**Please Do reward if it helps**</b>
    sales org + dist chan + div + document pric proc + cust pric proc --- > Pric Proc.
    we determine the pric procedure. So, just have a different document pricing procedure for sales order document type and invoice document type. You can have a different pricing procedure with this change.
    There are two simple reasons for making any Pricing Procedure in SAP  SD Modules.
    1) Business Reason. What are the pricing aspects or strategies you want to apply for the client requirement in order to sell their
    goods or render services, is all about the reason for various pricing procedures.
    Eg: Domestic sales pricing procedure,
    - Export Pricing Procedure,
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    - A repair pricing procedures.
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    As a example 2, you need to have a Pricing procedure for Inter Company Billing Conditions(IV01 & IV02) inorder to be active for Inter Company Billing specific transactions. Thus make sure that, the procedure wouldnot apply for non-Inter company transactions.
    Eg: KA0000 for Condition Supplement for KA00
    - PR0000 for Condition Supplement for PR00
    - ICAA01 for Inter-Company Billing
    In V/08 of defining a new Pricing Procedure, in main screen, you have a field called TSPP (Transaction Specific Pricing Procedure). This has to be ticked on for Intercompany Billings.
    The SAP help reads for this field as Under: Transaction-specific pricing procedure
    Pricing procedure transaction-specific indicator
    Before Release 4.0A, no special pricing procedures were used for intercompany billing and rebate credit memos, programs were just set accordingly to deal with these situations. As of Release 4.0A you are offered greater flexibility in the form of the option to define special pricing procedures for intercompany billing and rebate credit memos. For reasons of future compatability, you will still be able to use the old program specifications. For this reason, you must set this indicator if you want to create a special pricing procedure. This is to prevent the program settings being used.
    This indicator is also used as of Release 4.0A to redetermine the condition class and the statistical condition indicator when copying from a reference document.
    Example:
    You copy prices from a shipment document to the billing document. The prices should lead to a surcharge in the billing document. This is guaranteed by the redetermination of the condition class in the pricing procedure.
    Same case with Standard Pricing procedure or Inter Company Pricing Procedure.
    Regards
    AK

  • Taxes in pricing procedure are not picked up in the simulation for invoice

    Hello all
    we want to post taxes in pricing procedure in purchase order. but in MIRO Enter Incoming Invoice the system is not picking the taxes as line items in simulation. please let me know any setting missed in this regard.
    Thanks in advance
    Ramaraju

    Hi,
    Did you selected the Tax code in MIRO, unless you select how the system will show in the simulation.
    Check whether you have assigned the Tax procedure to your Country, did you created the Tax code for your country which you defined. If all the settings are ok then only you will get the Taxes in Simulation of MIRO.
    One more thing r u getting any error while doing MIRO related to Taxes. Check & Confirm.
    rgds
    Chidanand

  • Tax and pricing info are not flowing into Idoc orders02-eledp04 and 05

    Hi,
    We are carrying out SRM5.5 -SUS and ECC6.0 Integration using PI 7.
    We are configuring for the MM-SUS Scenario.
    Now,to accomodate the Tax / Pricing we have installed the add on
    component LOCINSUS and we are having doubts on how to use it:
    1) Tax and pricing information are not flowing into IDOC- orders02
    (e1edp04 and e1edp05 segments are not present in the created IDOC). The
    condition print indicator in checked on ECC System and we have also
    implemented SAP note 995986.
    2)In create ASN transaction , we are not able to see the Excise Invoice
    Number and Date field in Basic data tab as expected from SAP Library
    document although we have installed the Localization Add on component.
    Please help us to reso1ve these issues,
    Regards,
    Mani
    099890-22217.

    Mani,
    Did you resolve this issue, because we are having the same issue in ECC6 with IDoc ORDERS02.
    If you did resolve this issue could you please let us know how, much appreciated.
    Bill.

  • 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

  • Calculating difference of Tax in pricing procedure

    Gurus,
    Please provide me suggestions for the scenario below:
    There are two tax condition types ZX1 and ZX2 in my pricing procedure. ZX1 and ZX2 are the same tax type but coming into SAP from two different systems. One is from the e - commerce platform and other is from some tax system. We want to use one condition type as statistical and use for reporting purpose.
    What I basically need is to in someway calculate the difference between these two condition types and store value somewhere in the pricing. We will use that for reporting.
    1.  Source 1 Example (E-commerce) ---> ZTX1  $1.00
    2.  Source 2 Example (Vistex/Sabrix etc) ---->ZTX2  $2.00   (Statistical)
    Thanks,
    Manoj

    Dear Manoj,
    SAP has provided multiple Sub Total fields starting from KZWI1 to KZWI6 field. If you will assign any of sub total field from 1 to 6 to difference of condition type calculated line in pricing procedure, system will store in VBAP-KZWI* field.
    You can use the same for your reporting perspective.
    Regards,
    MJ.

  • 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:
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    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.

  • New tax code creation and pricing procedure for Sri Lanka

    Hi,
    I have one company code in India..Now I have requirement to create new plant under different company code in Sri Lanka.
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    Thanks & Regards
    Sunil Singh

    Hi Mr. Biju,
    Thanks for reply...
    Enterprise structure has already been decided. Everything we have copied from India for Sri Lanka and working fine except below error.
    As I have already mentioned that I have copied tax pricing procedure for Sri Lanka from Taxinn then assigned to country code LK (Sri Lanka). I have created new tax code for LK (Sri Lanka) in FTXP then I have assigned the tax code with company code in SPRO Logestic General--- Basic settings.
    After completeing this config, system is showing error" tax code is not defined to company code" in MIRO.
    Please suggest...
    Thanks & Regards
    Sunil Singh

  • Value contract and pricing procedure.

    HI All,
    I am working on value contracts. I have configured value contract and other related things. But I have some querries:-
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    2) Do I need to create a different pricing procedure for value contract?  If Yes  wont it conflict with the pricing procedure determined in the relaese orders?
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    Regards,
    Danny.

    1)Can I use standard order as release order for value contract?
    Ans: If you use the standard order as the release order document type, how would your restrict a particular customer for the orders (release)
    For example: you have something as FOC value Contract.
    Now when you can create a standard order same as the release order , how will you restrict the users from creation of orders for a particular customer.
    2) Do I need to create a different pricing procedure for value contract? If Yes wont it conflict with the pricing procedure determined in the relaese orders?
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    Say : you business offers free products to customers.
    Now the release order will can have a different pricing procedure than the Standard.
    The difference would only be a R100 condition type which will make the price as Zero but the taxes will be applicable.
    This explains why you should have a different order type for release orders.
    regrads,
    A S

  • Tax Code & Pricing Procedure

    Can anyone brief out how the condition types are being picked from tax code as well as pricing procedure...what is the difference??

    Dear Mahesh,
    The rates for taxes are picked up from TAX code which is clubbing of the condition types from Tax procedure (Taxinj or Taxinn). Now the tax values calculated are carried over to the MM pricing procedure usually with the condition type NAVS. This you can check under the conditions tab in the PO.
    All other pricing elements like discounts, freight etc can be handled using the MM pricing procedure conditions and the taxes like excise, VAT, CST, Service tax etc using the tax procedure.
    I hope this clarifies.
    Regards,
    Sid

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