MRP Excise Tax

You set up the MRP Excise tax to specify whether to use abatements. The characteristics of an adjustment with abatements include the following:

• Adjustment Control Code on the Modify Adj. Controls form is set to Accrued to G/L

• The Adjustment Options field is blank.

• On the Price Adjustment Detail Revisions form:

  • The Basis Code field displays 8 (Add on User Program Amount).

  • The Object Library field displays the Abatement Tax Rule Name, for example ABAT40.

  • The Factor Value Numeric field displays the excise tax percentage.

The system processes the MRP excise tax with abatements as follows:

1. Uses the current price from adjustments as the MRP amount.

2. Retrieves the abatement percentage from the Tax Rules Setup table (F75I072).

3. Calculates tax as MRP × (1 − (Abatement Percentage ÷ 100)) × (Factor Value ÷ 100).

4. Displays the adjustment on the Price History form, but does not apply the adjustment to the price.

The characteristics of an adjustment without abatements include the following:

• Adjustment Control Code on the Modify Adj. Controls form is set to Accrued to G/L.

• The Adjustment Options field is blank.

• On the Price Adjustment Detail Revisions form:

  • The Basis Code field displays 2 (Percent of Current Net Price).

  • The Factor Value Numeric field displays the excise tax percentage.

The system processes the MRP excise tax without abatements as a normal tax, such as:

• Uses the current price from adjustments as the MRP.

• Calculates tax as MRP × (Factor Value ÷ 100).

• Displays the adjustment on the Price History form, but does not apply the adjustment to the price.