Regarding Tax Codes.

[Former Member]

Dear All,

When I release my billing document to accounting I am getting my accounting document with the customer name and against it I am getting the tax code where is this tax code getting assigned to the customer in other words where is the assignment made between customer and tax code and how the same is appearing.Useful answers will be rewarded with the points.

Best Regards

Atul Keshav

[Lakshmipathi · Accepted solution]

Dear Atul

On your question

"where is the assignment made between customer and tax code",

as you would be aware, SAP defaults Ship To Party region for calculating taxes. So whatever tax classification you maintain in sales area data of ship to party, for that tax classification, you have to maintain an output tax code (which would have been created in FTXP) in VK11 / UTXJ.

Based on the combination for which you maintain the tax code, while creating sale order / billing, based on that ship to party region code, your tax will be determined.

Of course, 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

SAP defaults the ship-from jurisdiction maintained on the plant as the point-of-order acceptance, and defaults the ship-to jurisdiction maintained on the customer as the point-of-order origin.

[Former Member]

dear atul,

there is no direct assignment between ur customer and Tax codes.

tax code are linked to company codes and company codes and plants are linked to country.

based on the plant in the order it picks the country relevant tax types and based on the applicablity of tax conditon values get picked based on tax categories u have in material and customer.

hope throws some light on the issue.

regards

suresh s

[Former Member]

HI

You give the tax code in FB70 when creating customer invoice.

Regards

Mohit

[former_member550050]

Hi

Tax codes are defined in FTXP

Tax codes are for countries

It is picked up for the customer thro CMR in which we mention the country of trhe customer in the general data tab

I think there is no direct assignment between customer and taxcode and thro country only it is picked up

Regards

raja