Processing of transaction for a tax exempt customer

[Former Member]

Hi,

How do i process a transaction to a customer who is out tax exempted? I tried correcting the tax exempt in sales area data but still the transaction computed tax output.

Thank you.

Rachelle

[Former Member · Accepted solution]

hi,

if the customer always tax excempted irrespective of the material what is ordering then maintain one customer tax classification and give description has No tax and assign the same in the cusotmer master and do not maintian and condition record for that combination for UTXJ then system will not claculate the tax and if the transaction has already created then in the order in the billing tab assign the tax classification which is created then in the condition click on update and then take C then what ever taxes has been determined system will redetermine that.

Please check, I am also not sure

regards

P.Sudhakar

[Former Member · Accepted solution]

Hi Panithi,

Ive tried your suggestion the but still the transaction computed output tax.

Thanks

Rachelle

[Lakshmipathi]

Dear Rachelle

Go to VK13 input UTXJ and see for what combination, you have maintained the tax code applicable to that customer.

For example, in VK11, you would be having couple of combinations like

- Country (origin Country)

- Country (destination Country)

- Tax Class.Customer (Ship to Party)

- Tax Class.Material

The table for the above is 510 which should have been assigned in V/07 for the condition type JIND

The other combination is

- Country (origin Country)

- Plant (Delivering plant)

- Plant Region (Delivering plant region)

- Region (Ship To Party region)

- Tax Class.Customer (Ship To Party)

- Tax Class Material

The table for the above combination is 518

Ensure that for either of the above combination, customer tax classification is same as what you maintained for ship to party.

thanks

G. Lakshmipathi

[Former Member]

Hi,

I went to VK13 and and entered UTXJ. I choose key combination domestic taxes. Combinationa are country, Tax class 1 customer and tax class material. What do i do next? Sorry, im totally at lost.

thank you.

Rachelle

[Lakshmipathi]

Dear Rachelle

Input the required datas and execute. See for that given combination, you have maintained the correct tax code.

In fact, you just have indicated that "combination are country". Here I presume that you have the option of two fields with Country; one is origin country and the next one is destination country. Once you give these field values, in Tax Class.Cust., input zero and execute.

thanks

G. Lakshmipathi

[Former Member]

Hi Mr. G.

It says no condition was created. Tax exempt is for one or two customers only not all customers for one company code.

Is there a simpler and easier way? thanks

rachelle

[Lakshmipathi]

Dear Rachelle

The standard step are as follows:-

- Go to XD02 / VD02, select those customers and go to Billing Documents tab in Sales Area Data and maintain zeros for Tax categories.

- Go to FTXP, input Country of Origin and Tax Code and execute. Just save without maintaining any values there.

- Now go to VK11, input UTXJ, select the required combination and maintain the above tax code for the combination which I had explained above

- Create a sale order now and see how it works.

- Last but not least, if you are in TAXINJ, as I said, you can proceed as it is but if you are in TAXINN, then you need to maintain the tax code in VK19.

thanks

G. Lakshmipathi

[Former Member]

Mr. G,

Condition type MWA (0) condition type which i chose or entered in ftxp is not maintained in vk11, UTXJ

Thanks.

Rachelle

[Lakshmipathi]

Dear Rachelle

I still have a feeling that the problem is with your tax code. So what I would suggest you is that better create a new tax with 0% output tax in FTXP and dont maintain any values there. Assign this tax code in VK11 / UTXJ and let me know the outcome.

thanks

G. Lakshmipathi

[Former Member]

Hi Mr. G,

Thank you so much for all you help.

I am following your advise. Now, when i go to FTXP, i enter the country . Then i entered the tax code which is 00. What do i do next? If i execute, all the tax rates will appear. Should i choose properties? Sorry, im totally new with this.

Thanks for your patience.

Rachelle

[Lakshmipathi]

Dear Rachelle

Once you give the tax code and execute, you will see the break up of Account Keys and its respective Condition Types at the bottom screen.

As I said earlier, don't maintain any values there and just save. Now go to VK11, input UTXJ, assign the tax code "00" for the required combination.

thanks

G. Lakshmipathi

[Former Member]

Hi Mr. G,

Its me again. I have checked the table 510 in v/07 and it doesnt exist. Table there is only up to 499. But anyways, this what appears following your instructions.

I wen to FTXP, input the country of origin and 00 tax code and executed. I did not enter any value to the existing account deys and condition types. I just saved the transaction.

Then i went to VK11 and entered UTXJ. I chose execute. Then it requires me to choose key combination. Key combinations exisitng are departure country/destinatin country, 2. country/state/customer/mat classic and no. 3 domestic taxes. If i choose number 1, i enter country and des ctry and i execute. A message appears that tax code in procedure PH is invalid.

If i choose number 2, it requires me to enter region, tax cust and tax mat. I cannot enter the region there so no. 2 is out.

If i choose number 3 which is domestic taxes, tax condition for the tax exempt doesnt exist.

And like what i have said, when i checked tables 510 and 518 in v/07, both tables doesnt exist.

Should i create the table first? If yes, how do i create it or how do i create the combination.

Thanks so much!

Rachelle