amortization case
Post on 15-Apr-2016
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Amortization Process
Issue – Currently there is no provision in system to handle Amortization case. Excise % has to be
changed every time the basic cost changes.
Sample Calculation has been shown below:
Actual Calculation (To be in SAP)
Case 1) If CST has to be calculated without reducing Amortization cost.
Qty Total
Basic Price 218.63 10 2186.30
Amortization Cost 6.3 10 63.00
BED 12% 269.92
Ecess 3% 8.10
CST 2% 50.55
Sum 2577.86
Less Amortization Cost 63.00
Total Payable to Vendor 2514.86
Case 2) If CST has to be calculated after deducting Amortization cost. The calculation will be as follows:
No. of
meter to be
Amortized
C
Amortization
/Part
(in Rs.)
D=B/C
Assessable
Value
( in Rs.)
E=A+D
Excise
Duty
@12%
F=E*.12
Sap Excise %
to be Entered in
JMOP
G=F/A
1 100 333/Y6531 Door Seal 218.63 315,000 50,000 6.30 224.93 26.99 12.346%
PART NO.
Part
Price
( in Rs.)
(A)
Tooling
Cost Paid
( in Rs.)
(B)
S.
NO.PART NAME
Calculation for SAP & Amortization Value
Line
No.
Qty Total
Basic Price 218.63 10 2186.30
Amortization Cost (ZAM1) 6.3 10 63.00
BED 12% 269.92
Ecess 3% 8.10
Total Incl Excise 2527.31
Less Amortization cost -63.00
Total for CST 2464.31
CST 2% 49.29
2513.60Total Payable to Vendor
Amortization Process
Process in SAP
Creation of two new condition types in taxation
a. ZAM1 - +ve Amortization Cost. This is the amortization cost which will get added to the
basic cost and excise will be calculated on the same.
b. ZAM2 - -ve Amortization Cost. This is the amount which has to be deducted from the
total amount after applying Excise and before applying sales tax (CST/VAT).
There might be a case where Amortization is not deducted after calculating Excise Duty, in that case
ZAM2 might not be maintained.
These conditions have to be maintained using FV11 t-code
Note - Amortization amount will not be added in either Inventory or Excise. It will only be used in
calculating the taxes
Sample Postings in Quality Client.
Basic Price in SA – 218.63
Amortization Process
Tax conditions – Amortization Value – 6.30 per Qty. BED – 12%, Ecess – 3% , CST – 2%
Amortization Process
MIGO:
Amortization Process
Accounting Entries in MIGO
Amortization Process
J1Iex
Amortization Process
Amortization Process
MIRO
Amortization Process
Amortization Process
Amortization Process
Accounting Entries for MIRO
Total Payable amount as per Invoice Verification – 2514. 87
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