Tax condition types MWST Or UTXJ

[Former Member]

Hi,

In Pricing procedure for taxation point of view is it necessary to maintain UTXJ or MWST condition types.??

becoz i have cerated one pricing procedure(PP), in which i have not maintain any of these two types of tax condition types. As per the business requirement i have positioned VAT, CST, EXCISE DUTY etc on in the PP.

For every tax condition tyopes whic i have maintained in my PP i first assigned them to country IN ( in OVK1) as 1 for VAT

2 for CST etc.

in the second step i assigned the deliverying plant foe tax determination.

In third step in OVK4 i maintained the same taxcondition types for material like

For VAT tax Class 1 -

---

4 % Trading

tax class 2 -

---

4% MFG

For CST like the above step

CST -

---

Tax Class1----

---

2%TRD

CST-----Tax Class 2--

---

2% MFG

And for customer i just maintained whether the customer is taxable or not

VAT--

---

Tax Class 1---No Tax

VAT--

---

Tax Clas 2-----Full Tax

Ans i maintained the appropriate settings in both Customer and material master data nad created the condition tables for each tax classification.

And finally i assifned the Tax code in the respective Tax condition types.

In my case i have not maintained UTXJ or MWST condition types.But still i am getting the right output.

So is there any other purpose for which we maintain these? The procedure which i have followed is it right or not??

regards

jyoti

Edited by: JYOTI PRAKASH KUNNAR on Mar 26, 2010 7:40 PM

[Former Member]

Hi

Though I find it a bit strange but I have seen UTXJ hard coded in abap code for Tax procedure .And same is the case when it comes to excise Pricing defaults.

So to avoid any issues ,its better to put them in tax procedure . This will also help to minimize any issues withFI SD integration on taxation.

Regards

Mandar

[Lakshmipathi]

To the best of my knowledge, the right procedure is that you should assign either of the condition types UTXJ or MWST in your pricing procedure and for this, you have to assign all appropriate tax codes in VK11 for whatever combination you want. I do accept that in SAP, the end results can be achieved in many ways but there is only one best method and as for as possible, we should adopt this.

thanks

G. Lakshmipathi

[Former Member]

Thanks for the reply Sir. in fact i was waiting for your reply.

one thing can you clear me that what are the merits or say benifits of maintaining these two condition types in PP. where as without maintaining this we can get the result....

Regards

Jyoti

[Former Member]

""you have to assign all appropriate tax codes in VK11 for whatever combination you want""

You mean to say that in UTXJ condition types i can maintain all the tax codes which are created for VAT or CST.

or do i have to maintain this tax code in individual tax condition types(like CST or VAT)/

Regards

Jyoti

[Lakshmipathi]

i can maintain all the tax codes which are created for VAT or CST

.

Yes for different tax value, you need to create a tax code in FTXP and maintain the required tax percentage against the corresponding tax condition type there. Once you created and saved this data, the same can be maintained in VK11.

In normal circumstances, in VK11 for UTXJ or MWST, you can see combinations like

a) Country / Plant / Region / Region / Tax ClasCust1 / Tax ClassMat1

b) Country / Region / Region / Tax ClasCust1 / Tax ClassMat1

c) Country / Country / Tax ClasCust1 / Tax ClassMat1

For domestic sales, you can maintain the tax codes in either a or b and for exports, you can maintain in c.

thanks

G. Lakshmipathi

[Former Member]

Hi,

> Yes for different tax value, you need to create a tax code in FTXP and maintain the required tax percentage against the corresponding tax condition type there. Once you created and saved this data, the same can be maintained in VK11.

My doubt is if we maintain different tax code whch we create in FTXP for different value say

For CST

A1----2%(Mfg)

A2----12.5(Mfg)

For VAT

B1----4%(Mfg)

B2----12.5(trd)

The we assign this tax code for the corresponding tax conndition types lkie CST(A1, A2) or VAT (B1,B2)

Then What Tax code do we maintain in UTXJ or MWST condition types.Do we maintain the same A1, A2 etc taxcode to the UTXJ condition Type also.

Regards

Jyoti

[Lakshmipathi]

As you would be aware the access sequence for UTXJ is JIND and MWST is MWST itself which we assign in V/06 against the corresponding condition types.

For these condition types, in V/07, we maintain the following Tables

a) Table 368 for Domestic Scenario and

b) Table 11 for Exports scenario.

Since your query is on domestic, let me explain as under:-

The table 368 has the combination of

a) Country (delivering plant country)

b) Plant Region (Delivering Plant region)

c) Region (Ship To Party region)

d) Tax Classification of customer

e) Tax classification of material

Once you execute VK11, you can see couple of combinations based on what you maintained in V/07.

For domestic, you have to maintain for the combination cited above. In normal circumstances, for the same customer and material, you cannot charge different taxes. Either the customer or the material would be different.

For example, for customerA, if the customer is liable for 2% tax and customerB is liable for 12.50% tax, then in customer master, under tax classification tab, you should maintain 1 for either of the customer and 2 for the other customer.

So now, in VK11, after keying the tax condition type, you have to maintain Tax Code A1 for customerA, and A2 for customerB.

Hope now your query is answered.

thanks

G. Lakshmipathi