How system picks value from Tax Code

[Former Member]

Dear Experts,

I have one scenario,

In our pricing procedure there are tax condition types for which there are no condition records maintained. But the values are maintained in Tax Code.

My doubt is, do we have to add these tax condition types in pricing procedure as they are already in Tax Code ?? Because I observed few condition types are not there in pricing procedure but the same are in Tax Code.

Second, how the system comes to know that there is no condition record and the value is in Tax code. How does it determine and pick the value from Tax code.

Thanks in advance

Sagar

[Former Member]

Thank you all for your valuable inputs. I also got information from our sr. consultant. so my doubt is almost solved

Sagar

[Former Member]

Thanks Sagar for providing the feedback........ You guys are doing great at SCN, Please keep going....

Thanks,

Raja

[Former Member]

hello,

system will check ur utxj cond and will pick up record of utxj as per access seq maintained.

in utxj, u must have given the tax code, from this tax code the system will pick up tax % against the cond types maintained in pricing proc.

it will just pick the value of tax from tax code.

i hope clear.

rgs,

ak

[Former Member]

Hi Sagar,

Did you check this document

http://www.sap-img.com/sd009.htm

Have a look at it, you will be cleared about tax determination.

Thanks,

Raja

[Former Member]

Thanks for your reply Raja,

I have already read that document but there is nothing mentioned about Tax code.

Please once again go through my query and try to help me understand the concept as it is very imp for me to understand

Sagar

[Former Member]

Sagar,

Let me try to clear your confusion :

For Total determination of pricing we have two things

Pricing Procedure and Tax Procedure.

Pricing Procedure tell system about the what and how the price to calculated for material in Sale Order.

In this pricing procedure the conditions JIN1 JIN2 etc ares pertaining to tax applicable on the Sale order Price.

These conditions display the tax.

Now the tax is calculated based on tax procedure.

And a Tax procedure acts as a master and there is one tax procedure for one country.

for that particular tax procedure there are tax codes defined.

These Tax codes allows the using the same tax procedure but changing value of various conditions and removing which we dont require.

Lets take an example : AS TAXINN is tax procedure for India. Based in this procedure many tax codes are defined for 12% vat, 6% vat , no vat etc.

So what kind of tax will be applicable on the Sale order is governed by tax code which is mentioned in customer master.

Based on this tax code taxes are calculated on Sales order net value and then the tax amount is displayed in pricing procedure

You assign the tax condition types to Pricing procedure so that it will display the taxes in the sales order.

I hope it will clear some of your doubts. Please let me know if you need further assistance.

Thanks,

Raja

[Former Member]

hello raja,

can u throw some light on ur sentence 'So what kind of tax will be applicable on the Sale order is governed by tax code which is mentioned in customer master.'

where in customer master this is assigned and is later governed.

new to me and would certainly like to learn.

rgs,

ak

[Former Member]

In Customer master we assign tax codes created in OVK3, whether customer will be liable for tax or exempted

Thanks,

Raja

Edited by: Raja Singh Chhabeda on Jul 2, 2009 4:49 PM

[Former Member]

But Raja,

then how do these tax condition types come in pricing procedure. Do we have to add condition types that we want. in pricing proc.

Also, I observed for few tax condition types, there is no condition record but the value is maintained in tax code.

So, how system comes to know that it has to pick the value from tax code and not from condition records.

Also, how pricing procedure is linked to tax procedure. I mean where do we configure this.

Regards,

Sagar

[Former Member]

hello,

tax procedure, when we say, it is maintained by FI in financial acc-basic setting-tax on sales/purchases-basic setting-check calc proc.

pricing proc is maintained in sd.

they have a link for tax cond types.

the remaining tax cond types that u cannot c in ur pric needs to be maintained if they are there in ftxp - tax code for SD.

the rest is answered in my previous reply which u will understand if u go through properly.

do revert if any doubts.

rgs,

ak

[Former Member]

Hi Sagar,

Adding to Avi kamu's Point, Tax codes are assigned to Condition types, based on this when we maintain the records in VK11, System calculate based on the combinations you maintained.

Thanks,

Raja