Tax Conditions for Sales and Distribution using Jurisdiction Code in Canada

[Former Member]

Hello everyone,

I would like to share with you a doubt relating taxes for Sales and Distribution in Canada.

The Tax conditions for Sales and Distribution in Canada are the CTX1 (GST - Canada), CTX2 (PST - Canada) and CTX3 (Base + GST). These are the Tax Conditions which appear when creating a Material or a Client for the Canada Region, and are also the ones included in the Canada Standandard Pricing Procedure.

I tried to apply the standard method of creating a Master Record for these conditions, but an error relating the Jurisdiction Code came out while releasing to accounting.

Does anyone one how to procceed? Which are the important issues with Finance Accounting to take in to account?

I would really appreciate any comment relating this issue.

Thank you very much in advanced.

Víctor

[Former Member]

ok

[Lakshmipathi]

Tax determination for Canada should be as per the links

[Configuring Material Master Data (SD)|http://help.sap.com/saphelp_47x200/helpdata/en/af/3f899b9e6711d395da00a0c929f4c9/frameset.htm]

[Configuring Customer Master Data (SD)|http://help.sap.com/saphelp_47x200/helpdata/en/af/3f89989e6711d395da00a0c929f4c9/frameset.htm]

[Maintaining Tax Jurisdiction Code Condition Record|http://help.sap.com/saphelp_47x200/helpdata/en/93/db69c47fd511d395c100a0c929f4c9/frameset.htm]

I have a feeling definitely, in any of the above areas, your setting is missing and hence the issue. Please go through these links and let us know whether your settings are in line with the standard.

thanks

G. Lakshmipathi

[Former Member]

Condition UTXJ is not included in the Canada Standard Pricing Procedure. The requirement is to include CTX1 and CTX2, which are the conditions defined for sales and distribution, entering the proper value (the one defined in Finance Accounting) as Master Data, but, how to manage the Jurisdiction Code Issue?

Thank you,

Víctor Liedo

[Former Member]

Qucik thought. I believe you should try using the CTXJ condition type if you are using with Tax Jurisdiction concept for CA.

Thanks,

Ashok

[Lakshmipathi]

an error relating the Jurisdiction Code came out 
     while releasing to accounting.

Assuming that you were talking about billing document releasing to finance, as you would be aware, tax is determined based on the combination of delivering plant's region and ship to party region. For this combination, you would be maintaining a tax code in VK12 / UTXJ.

If there is any issue relates to tax jurisdiction while releasing the billing document to finance, you have to check in VK12 / UTXJ.

If this is not your issue, please elaborate clearly.

thanks

G. Lakshmipathi

[Former Member]

Dear Mr. Lakshmipathi,

In first place, thank you very much for your quick response.

I have tried many different procedures to get the aim, and among others, a new access sequence was created to allow the introduction of the Jurisdiction Code (UTXJ is not available for Sales Conditions) but once the Condition is created, it is not recognized when creating the Order ("pricing error: Mandatory condition CTX is missing"). Maybe it has something to do with the fact that these conditions are not included in the Finance Accounting Tax Procedure, where the conditions, which represent the same taxes but with different condition names, are defined for a certain Tax Code and Jurisdiction code.

Among the different SAP notes for the error relating the Jurisdiction code, there was one proposing to change the Condition Category from "D" (Taxes) to a value between "1 and 4". By doing this a new error appears while creating the order, saying that there are conditions in the Tax procedure (JRC1, JRC2)which are not included in the Sales Pricing procedure. By including this conditions in the Pricing procedure, the Tax Conditions existing in the Finance Accounting Tax Procedure are brought to the Order Conditions, in addition to the Sales Tax Conditions. And there is something more, each Tax Condition from the Finance Accounting Procedure appears twice, one with the application V (Sales) with value zero, and one with application TX (Taxes) with the value existing in the Finance Accounting Taxes Procedure. This is how at the end, the corresponding %value of the taxes is brought to the Invoice with the correct Tax Code, and the proper Jurisdiction Code, which is different for each condition.

Thank you very much for your time.

Víctor Liedo