Tax category change

[Former Member]

Hi all.

If you have determined in transaction OVK1 a certain tax category for a country and you need another to be determined (you have customers and sale orders created), what is the best way to do it?

Imagine that you assign JTX1, JTX2, JTX3 and JTX4 tax category to a country (OVK1), define some values for customers and materials and create some sale order (invoices are not created).

Then, due to a fiscal change, you decide to change the tax category used in this country and assign another one, for example, MWST.

It is possible to delete the old entries in OVK1 and assign it to the new tax condition MWST, supposed to have values for materials and customers for tax classification (materials and customers) in OVK3 and OVK4.

In this moment if you maintain materials (MM02) and customers (XD02) it is necessary to include values for MWST but it seems that for customers, values for JTX1, JTX2, JTX3, JTX4 for this country are still displayed in KNVI. Is this correct?

Will we have problems if we just delete the old tax category in OVK1? Do we have to make any further actions?

Many thanks in advance and best regards.

[Former Member]

Thanks again.

My question is because we customized 4 tax conditions in this country but our tax department advised us that taxes for that country are going to change in a couple of months (now it is a complex country on this issue). We have now assigned this 4 conditions to the country with values in some customers and materials but not sale orders created.

The purpose is to begin creating sale orders for manufacturing purposes but creating billing in FI until it is decided how we are going to work.

As we haven´t created any sale order my question is more related to how to keep the system until change is decided¨:

• keeping these 4 tax conditions (with value 0) and adding the new one when decided

• deleting these 4 conditions in OVK1 now that no sale order exists, keeping it wihout any tax conditions and adding the new one when known

What is the better choice?

Many thanks for your great support.

[Former Member]

Thanks for your reply.

I fully agree with you about not deleting the old tax categories, just adding the new one.

Anyway, what do you exaclty mean with "there should not be any open transaction data"? Maybe Pending sale orders?

The thing is that we have long-term sale orders, so probably we will have this case, but we only use this sale order to make production and deliveries, not for billing purposes (billing is made in FI due to taxes indefinition that we are going to solve)

Is this a problem?

Best regards.

[former_member188076]

Hi

Anyway, what do you exaclty mean with "there should not be any open transaction data"? Maybe Pending sale orders? 

If you are deleting the Tax Classification, then it will affect the open transactional data.

Therefore I suggest tyou to add new tax classification, and also keep the old one with ZERO tax. Once you are sure that there is no open transaction, then you may delete the old one.

Regards

Amitesh Anand

[former_member188076]

Hi

I am not in favour of deleting the Tax Category entirly. Yse instead of using JTX1, JTX2, etc. you may assign the MWST in OVK1. But make sure that there should not be any open transaction data. And as soon as you will do this change all your material and customer master data will need change.

Another way is that you may keep the OVK1 data as it is and just add one more Tax Category MWST for Country. And in OVK3 and OVK4 maintain Tax Classification "ZERO" for No Tax for your already existing Tax Category and maintain the same in Master Data, whereas for new Tax Category you may use the tax classification accordingly. Since by deleting Tax Category entiry may cause some issue for alraedy existing Transactional data.

Reagrds

Amitesh Aannd