Tax determination

[Former Member]

Could any one explain in detail the Tax determination procedure in sales order..with step by step procedure and Tcode..

David..

[Lakshmipathi]

Dear David

Several parameters influence the tax amounts and tax rates determination. The most important ones include:

- Delivering country (origin)

- Tax class of the ship-to partner

- Tax class of the material being shipped

- Tax calculation date

- Jurisdiction code from ship-to-party (customer)

- Jurisdiction code from ship-from address (plant)

- Point-of-order acceptance

- Point-of-order origin

First you have to create a tax code in FTXP and maintain the respective percentages / values there which would be done by FI people. If you are in TAXINJ, values needs to be maintained as otherwise, just create a tax code and dont maintain values there, if you are in TAXINN.

The Access Sequence for UTXJ is JIND. So maintain the required tables for JIND in V/07. Go to VK11, input UTXJ and maintain the required tax codes there.

On the other hand, if you are in TAXINN, you have to maintain seperate condition types for each and every tax code in VK19.

thanks

G. Lakshmipathi

[Former Member]

Thanks 2 Murali an Lakshmipati..

David

[Former Member]

Hi Laksmipathi,

we are facing the folling error can you please look into this. I will be thankfull to you.

we have define pricing procedure in sales and distribution and the tax calculation procedure in finance.

Scenario is:-

Tax condition define in the Pricing procedure is.

Proc. Step Cntr CTyp From To Man. SubTo AltCBV ActKy Print Description

YPOS04 900 YWS1 10 10 M YWS X Local Tax (POS)

Tax condition define in the calculation procedure for vat(output tax) is:-

Proc. Step Cntr CTyp From To Stat ActKy Print Description

YTAXIN 690 YIN2 590 590 YS4 IN: AR VAT Payable

YTAXIN 700 YIN1 590 590 YS6 IN: AR S.T Payable

I have created Y1 tax code in which I have specify the 4% vat output tax infront of YIN2 condition type and YS4 account key.

After that I specify output tax G/L in OB40 in YS4 account key with tax code combination.

after that sales guy create condition record in vk11 with the comination of YWS1 (condition type), region, Account assingnment group for customer, account assignment group for article and tax code Y1.

YWS1 condition is defined in the Pricing procedure.

here our problem is that when we are posting the sale than system through the error that G/L account is not defined for account key YWS, which is defined in the pricing procedure.. but system ahould check the G/L which is linked with the YS4 account key which is defined in the calculation procedure.

Please clarify that how system pick the G/L account and from which account key.

after this error message we define YWS (pricing account key) in tax on sales and purchase under (check and change settings for tax processing) than I assign the output tax G/Ls in the YWS key with combination of tax codes.

than system picks the same g/Ls which is defined in the Yws key for tax..

Is it the right method?

please clarify where we are missing. and what is the right procedure to caputure the tax.

appreciate you reply.

Regards

[former_member204513]

Dear David,

Please go through this IMG path to determine the TAX

SPRO>IMG>Sales and Distribution>Basic functions>Taxes

-->Define Tax Determination Rules

-->Define Regional Codes

-->Assign Delivering Plants For Tax Determination

-->Define Tax Relevancy Of Master Records.

Maintain the Tax condition types in your pricing procedure then maintain the condition records for the same.

The tax will determined based on this combination

Depature country (From shipping point)Destination country (Ship to party)Customer tax classification(customer master)+Material tax classification(Material master).

I hope this will help you,

Regards,

Murali.

Edited by: Murali Mohan.Tallapaneni on Sep 15, 2008 5:24 AM