The tax classification of the customer.

[Former Member]

Hello Gurus,

Goodmorning,

In customer master customer tax classification is zero and in material masterial master material tax classification is zero , but when i maintain condition record for tax condition type VAT with a combination of customer and material , system is picking the tax value from condition record, on what basis system is picking the value even though both are not liable for tax, i'm confused with this, looking for your inputs.

Thanks in advance.

Regards

Ravi.M

Note-Customer master tax classification-is zero, Material tax classification- is zero

Note-For tax condition type in condition record i assigned tax code .

[Former Member]

Hi Ravi,

Go to the Item condition screen, select the VAT condition type, click on the "Condition record display" button below.

System will show you from which condition record the value is coming.

Make the necessary chnages or deletion of that condition record in VK12.

Regards

Pradyumna

[jpfriends079]

See, you need to understand, the system goes you output, what you want.

i.e.,

if you maintain a tax condition type in following manner, it would work accordingly, say, for condition type the condition record is maintain with following access sequence (if that s not present for your condtion type, then maintain😞

550-Country/TaxCl2Cust/TaxCl.2Mat

or 356-Country/PlntRegion/ST Code/TaxCl1Cust/TaxCl.Mat

or 356-Country/PlntRegion/TaxCl1Cust/TaxCl.Mat

So, Cust Tax Cl - Mat Tax Cl - Value - Tax code

1 (liable)- 1(liable) - 10% - V0

1 (liable)- 0(not liable) - 5% - V0

0 (not liable)- 1(liable) - 3% - V0

0 (not liable)- 0(not liable) - 0% - V0

Try and share your feedback.

Thanks & Regards

JP

[Former Member]

Prakash ,

Do u mean to say , i have to maintain all the permitations and combinations.

Requirement is this:

Maetrail is not liable for Tax under CSTor VAT,

Customers are liable for tax under CST or VAT,

when try to relase billing doc type with VAT condition to accounting it is posting properly ( here customer is liable for tax, material not liable for tax).

same when i use CST with another customer ,here customer liable for CST,where as material is not liable for tax,then i tried release billing doc to accounting it is not posting properly( Here customer liable under CST, Where as material is not liable for tax)

Then I maintained with zero tax in both customer , material, But maintained condition with VATand CSTwith combination, customer and material,

If i maintain condition record it picking the value in my sales oder but it shouldn't happen?bcoz both are zero,i did this for my checking purpose as i was getting error in other scenarios.

looking for your input .

Thank you

Ravi.M

[Former Member]

Hi Ravi,

when you maintain tax classification for customer and material as zero.i.e you dont want tax to be calculated for that particular customer and material.

in this case i dont understand why you mantained record for that customer and material again.

Please clarify it

[Former Member]

Hi Balaji ,

Reason is this: I have some requirement, Material is not liable for tax under CST or VAT but customers liable for tax under VAT or CST.

Now I want apply VAT for customer within the state, CST for customers out side state.Now the question is when try to relase biiling doc in VF02 with VAT condition type I sales order it posting to account properly but where as when maintain CST tax condition type sales order ,these are not posting properly when try to release billing doc accounting .

So , then i tried to post CST with zero tax lilablity in customer master , material master with condition record value , Just want to check it, even though customer , material are not liable for tax it is picking the value from condition , if i maintain condition record for that particular condition type ( CST ot VAT) , So why it is picking condition record value when both are zero in respective master datas .

Note-- The same with Vat condition type too.

thank you,

Regards

Ravi.M

Edited by: RAVIMSD on Jul 7, 2010 11:49 AM

[former_member266852]

Hiii Ravi,

I think you have created condition record with customer tax classification and material tax classification as zero, If customer and material combination is not liable for tax then please dont maintain the condition record for same with zero tax classification.

Second you can manually change the tax classification in header for customer and in line item for material.

Regards

Shambhu Sarkar