Significance of Tax classif 1,2,3,4,5, of customer in Condition table

[Former Member]

Hello All,

Can anyone explain me the significance of tax classification of Customer 1,2,3,4,5 in condition table as as tax classifiation of material.

I tried to create one tabe using sales area and tax classification-5 of customer , but it is not getting determined in my pricing procedure.

Regards

Amit

[Former Member]

Hi

I dont know whether this will help you but sharing my findings regarding your question.

I believe there is some link between tax classification of Customer 1,2,3,4,5,6,7,8 and 9 with the configuration of Define Tax Relevancy Of Master Records fro customers and materials taxes under Tcode OVK3 and OVK4.

If you see there are only 9 tax classifications available for both customers and materials and in the configuration of Define Tax Relevancy Of Master Records you can specify only upto 9(single digit) levels in the filed Tax class.

Please update whether the above is useful to you to understand the significance of those fields.

Regards

Rajkumar K

[Former Member]

Hello Rajkumar,

Yes , You are right .There is relevancy of OVK3 & OVK4 with Tax Clasif 1,2,3,4,5.

it is an indicator determined in sales order Header under billing tab page Tax classification of customer through customer master.If i am talking about Customer tax classification 5 , so it is 5 th sequence which is maintained through OVK3 in Customer master. If we have more than 9 tax categories, then we have to change it mannualy in sales order.

Regards

Amit Gupta

[Former Member]

Hi

The tax classification of Customer is used to define the level of tax applicable to him and also it Specifies the tax liability of the customer, based on the tax structure of the customer's country.

If you want to create any table for the tax condition type first we should be clear about the tax requirements since taxes are calculated based on the Departure and destination countries(in case of export and import), tax classification of customers, tax classification of materials and incase of domestic the country keys are used to determine the tax rates.

You need to use any of these fileds in your condition table for the use of taxes.

The table which you have created has only sales area and customer tax classification indicators as key fields, I hope this is not sufficient enough for the system to determine the tax rates.

Hope this helps you.

Regards

Rajkumar K