Tax Config Issue in Pricing Procedure

[Former Member]

Hi

I am facing a problem while defining condition type for taxes. I have maintained JIVC (CST) as one of the condition type. Under JIVC I have different taxes like with or without C Form.

Now the problem is that a customer sometimes gives C form & sometimes not. So what condition record should i maintain. As while processing sales order only I will come to know that customer will provide C form or not.

Should I enter CST manually?

Can anyone help me with complete config part.

[Former Member]

Maintain UTXJ condition record with VK11 and here you assign the Tax Code also. The record can be based on your business requrement e.g. Country/Tax Class. Customer/ Tax Class. Material/ Selling Plant Region/ Customer Plant Region.

Now the Tax Code you have assigned must contain the required Tax Conditions. These condition types must be in FI Tax Procedure also, else duties shall not flow to the G/L. Now maintain the record for e.g. CST cond. type with VK19.

Regards

Arun

[Lakshmipathi]

Dear Gupta

No dont maintain tax conditions as manual. It should flow automatically in sale order / billing.

So I recommend the following:-

Have different tax codes in UTXJ; one for with tax and one for without tax. Here you should differentiate the tax code for material. Say for material tax classification1, tax code is A1 which is with tax and for material tax classification2, tax code is A2 which is without tax.

So while creating sale order, at item level, go to "Billing" tab and by default, you can see four ones in the field "Tax classific.". Change the first one to two and press enter key. Now check the tax code in sale order.

On the other hand, if for the material itself, tax is not applicable, then you can directly maintain 2 in material master tax classification.

thanks

G. Lakshmipathi

[Former Member]

The configuration for taxes depend on the Tax classification in the customer master and material master.

For the material master, maintain as many tax codes as there are schedules. In INdia the sales tax is determined based on schedules in the act i.e 4th schedule 12.5% 6th schedule 4%....

Classify your customers accordingly. Domestic customers in side the state will have a vat clssification of 1 lets say and CST 0.

Similarly export customers wil be classified as X, Consignment as H, CST customers 2% as 2.....

These indicators you need to put it in the Tax classification in the billing in the customer master record and also in the material master record.

FOr each of these combinations you need to maintian a rate in the Condition record in VK11.

For instance in VK11 chooseJIVC and the combination which has Country/Region of dlv plant/customer class/material class and maintain a rate 2% in the condition record.

When you do the sales order the system will use this and pick up and calculate 2%.

SAP has what is called form tracking . Check it out in J1ILN. What it does is if the frm is not maintained for the customer by the time the billing is done, the rate of VAT is applied. For this the configuration needs some change as well to incorporate the VAT rate instead of CST rate.

Another way to get round is to make the JIVC as no restrictions in customising so that manual changes can be allowed.

regards

Jude