Alternate Tax Classification

[Former Member]

Hi Gurus,

What is the significance of the field "Alternate Tax Classifcation" in the sales document header.Where do we maintain the alternate tax classifications? How does this affect taxation in a sales order and invoice?

Many Thanks

Kumar

[former_member217082 · Accepted solution]

Hi Kumar

The importance of Alt tax classification in sales order is if you go with tax determination (OVK1/OVK2/OVK3) configuration and if you maintain , say 3 or 4 taxes then those alt taxes will come from CMR & MMR.Then the Alt tax classification will be used

Regards

Srinath

[Former Member · Accepted solution]

Thank You for you reply Srinath.

Could you please explain the answer in more detail? How does using this indicator affect the tax determination process in a sales order?

In our Org, the tax is determined using condition records. The issue is, in a sales order the tax percentage determined in the sales order condtions is different to the tax percentage when checked using the analysis tab.

In the sales order conditions tab, tax is determined from the condition record with CustTxCl 1 and MatTaxCl 1. But when I check in the analysis tab, the condition record has the CustTxCl determined as 0 and MatTaxCl 1. What could be the possibel reason for this? How do we correct the tax in this kind of scenario?

Many Thanks

Kumar

[Former Member]

Hi Kumar,

Alternate Tax classification is use 2 give effect of Sales Tax(CST/VAT) in pricing,e.g. 1-Taxable,0-Exempted,system will give effect in pricing as per classification.

You Maintain In OVK1,OVK2,OVK3,OVK4 T-codes. and you have to assign it in Customer master(Billing -Tax Column) and Material Master(Sales Org 1-Tax Column) system will pixk tax effext as per those combination

I think this basic will help to resolve your doubts

Regards

Hemant