New tax codes / condition type for VAT 15%

[Former Member]

We were using condition type MWST for 17.5% for VAT for output tax for SD module. For FI, we have tax code , which is defined thru FTXP.

Now the requirement is, that the VAT is changed to 15%. Now instead of changing the existing code to 15%, i am creating a new tax code, which i have done. I have also crearted condition type by copying from MWST.

Now, the user wants, that if any any trxn is entered after 1st Dec'08, 15% is applicable. Is this possible ?

OR i have to physically type the new condition type in SD module.

Are there any more settings for new tax code ??. I have done the earlier 17.5% settings since long, hence not able to recollect, if anything else is left.

Thanks

amit

[Former Member · Accepted solution]

Hi Amit,

As per your customer requirement please create another condition record in addition to the earlier one and give validity from 1st Dec'08 and change the earlier condition record validity date to 30th Nov'08.

In the new one maintain 15%.

Regards,

Mohan.

[Former Member · Accepted solution]

what is the trxn code ??

Also, while entering contracts in VA41, how the new condition type will come automatically ??

right now MWST is coming by default. I have created MWO1 for 15%. How this will be defaulted now.

Pl. give trxn code ..

thanks

amit

[Former Member · Accepted solution]

Hi Amit,

By using VK11 we can create new condition record and by using VK12 we can change the existing condition record.

Regards,

Mohan

[Former Member · Accepted solution]

while entering contract in VA41, MWST is coming by default , which is 17.5%

I want it to be MWO1 (new condition type of 15%), to come by default ...is this possible ???

Any change in the configuration to be done ???

Thanks

amit

[Former Member · Accepted solution]

hi Amit,

you need to do two things; one is check the MW01 condition type is configured in Pricing procedure correctly.

secondly, change MWST condition condition record validity for 17.5% to 30th November. (so that it will not pull for fresh sales order or contracts)

Note: use Analysis button (contract item data) to understand which condition records are maintained and which are not maintained for further analysis.

hope will help you.

Mahesh.

[Former Member · Accepted solution]

which trxn codes is to be checked ???

Thanks

amit

[Former Member · Accepted solution]

Hi

First of all for changing the VAT tax rate from existing 17.5% to 15% you need not have to create new tax condition type you can use the old tax condition type but

But the problem does not end with just creating new condition record. You need to consider the different business process scnearios your client is having

for example

what to do with Open sales orders which are yet to be deliveried and billed

Open sales orders which are deliveried but not pgied and not billed

Oepn Deliveries which are pgied and not billed

Open billing documents whch are not posted to accounting

Consider the following Check list*

create a new condition record with the new tax code ( 15%) with a validity date starting from 1st Dec 2008. By doing this automatically the old condition record gets ended at 30 Nov 2008

1) Check what is the Copy control Setting from Orders / Deliveries to Billing . If its "G" then an Open Sales order which is due for billing gets new VAT 17.5%

2) Make sure all the invoices which have a billing date of on or after 1st December 2008 and for whom accounting documnents are not yet created to re price them with new VAT

3)Its a legal issue to check with the business team whether to reprice the invoices for which the shipments have already been sent out before December. I know for sure f the shipments are due in december it should take the new VAT.

4) all the new sales orders which have the pricing date of on or after the Dec 1st will carry the new VATelse the old VAT is populated in the order.

check wither the Old VAT percentage is hard coded in any of the IDOC programs or Form lay outs / smart forms etc.

[Former Member · Accepted solution]

i have already created new tax codes & new condition type(by giving reference from the old condition type).

Is that ok ???

thanks

amit

[Former Member · Accepted solution]

pl. reply

[Lakshmipathi]

Dear Amit

Check my suggestion in this thread

[TAX Change |]

thanks

G. Lakshmipathi