Difference between tax determination procedure and pricing procedure....

[Former Member]

Hi,

What is the use of Tax determination procedure when we maintain tax condition types in pricing procedure.(and condition records will pick the correct tax rates).

My question is that, can we trigger an o/p tax without maintaining a tax procedure at document type level?If yes then what is the basic use of tax determination procedure in SAP?

[Former Member · Accepted solution]

Hello Christino

Tax Procedure deals with all types of taxes, i.e., Input (MM) and Output(SD) and specifies the base amount on which to calculate taxes. We may have just pricing procedure and condition types and get the rate to be applied, then how does the system know what all tax conditions are needed and how they should be calculated? And through Tax codes which work as a link between Tax and pricing procedures, the accounts to which tax amounts are posted, are defined.

You can not trigger an o/p tax without maintaining a tax procedure at document type level

[jpfriends079]

Tax procedure is being used in the Country Version India Add-On and requires to maintain additional data in the Excise Rate Maintenance transaction, J1ID. Each of the excise duties in the tax Procedure Tax procedure has its own condition types, and each condition type is assigned to a formula in the standard SAP. This formula instructs the system to calculate the excise duty using the data that have been maintained in the Excise Rate Maintenance transaction.

FTXP for a country is determine from TAX procedure assign to the country.

[Entering content frame formula-based excise determination (LO)|http://help.sap.com/saphelp_470/helpdata/pt/e6/2adbdec6974f4c9f35d732b108d09e/content.htm]

[Formula-Based Excise Determination|http://help.sap.com/saphelp_47x200/helpdata/de/20/53bfce14ff11d4b5b1006094b9ec21/content.htm]

[Condition-Based Excise Determination|http://help.sap.com/saphelp_470/helpdata/ru/08/34bc3cdc322866e10000000a114084/content.htm]

Thanks & Regards

JP