Tax pricing procedure for USA / Canada

[Former Member]

Dear All,

We are creating a new SD pricing procedures for USA and Canada.. I have few clarifications on this.

1. May i know..what is the std pricing (inlculding the TAX condition type) for USA & Canada.

2. I have gone through the IDES system and found there are 2 pricing procedure RVCXUS & RVAJUS. What is the difference between these 2 pricing procedure..

Please help me to understand the purpose of having these above pricing procedures.

Thank you.

Regards,

Mani

[former_member274400 · Accepted solution]

Hello,

For US and Canada, SAP has provided two tax procedure. One based on Jurisdiction code and other without Jurisdiction code. In addition to that, for US, SAP also provide proceudre for external tax system as in US number of jurisdiction codes are very high (around 55000) and similalrly lot of changes at county level which is difficult to handle in SAP. If your client have business at large places across US then prefer to use external tax procedure which generally connect to VERTEX or any other tax system.

For Canada, confirm with your client how they calculate tax i.e. based on jurisdiction or without jurisdiction and based on that use tax proceudre.

Regards,

Mukul

[Former Member · Accepted solution]

Hello Mukul,

Thank you for your clarificaiton. However, i am still having the following clarifications.

1. Our client has confirmed that there is no tax in USA currently. But, by considering the future requirement, we are planning to go ahead with Jurisdiction tax procedure. Client may not use VERTEX system. In this situation. could you suggest..which pricing procure is suitable to the requirement.

2. For Canada... it is province/region based tax system. I think..here.. i will not be having any problem.

Please help me for USA tax pricing procedure to have a proper pricing procedure..which covers.. the future requriement also.. (means.. with Jurisdiciton code)...

May i know.. where the Percentage is maintained for each jurisdiction code...?

Thank you.

Regards,

Mani

[former_member274400 · Accepted solution]

Hello Mani,

It is always better from business point of view to use external tax system ( most of companies use external system). But if your client have very small structure in future from tax point of view, use jurisdiction tax code and pricing procedure with jurisdiction tax. I dont remeber pricing procedure name, but you can find in define pricing procedure in IMG. In description, you will find with Jurisdiction and w/o jurisdiction. Use Jurisdicition one. In this pricicing procedure, tax condition type will be UTXJ. Use this one.

In FI side, you will find JR1, JR2, JR3 and JR4 condition types...

Regards,

Mukul

[former_member274400 · Accepted solution]

Mani,

I missed ur last point..

Tax rates are maintained in FI for JR1....JR4 and then u will CTXJ in VK11.

Regards,

Mukul

[Former Member · Accepted solution]

Hello,

Thanks.. But, i have checked the sales orders created using the pricing procedure RVAJUS with. jurisdiction in IDES 800 system. But i dont find ay tax for this pricing procedure sales orders.... But sales orders created using the pricing procedure RVCXUS, the tax is calculated..

Even, i didnt find the accout key assinged against the condition types JR1....JR4 in the pricing procedure RVAJUS. Then how the tax is calculated and accounted through G/L account..

Thank you.

Regards,

Mani

[former_member274400 · Accepted solution]

Hello,

ICheck tax procedure assigned to country. It seems external tax calculation procedure is assigned. Check aasignment in FI are of SPRO and then check pricing procedure assigned to your sales area/document and customer pricing procedure indictor. Pricing procedure you mentioned is SD pricing procedure. In FI, there is addtional setting which to assign tax procedure to country. Remove assignement of ecternal tax procedure from FI and assign jurisdiction based pricing procedure then you will see JR1...JR4 conditon type. CTXJ will become statastical here as posting to FI is based on JR1...JR4

Regards,

Mukul

[Former Member · Accepted solution]

Hello,

Can any one explain me where the Tax rates are maintained for the Jurisdiction codes level. For example i have one customer code 3050 and maintained the jurisdiction code 1403105101 in the customer master record.

Now, i want to know.. where the Tax rate are maintained for each Jurisdiction code/postal code.

Please help me.

Regards,

Mani