Tax classfiction of material master is taking the same even two dist Chnl

[Former Member]

Dear all

i have a problem ,

When a material is created for a sales area i.e say 1000/20/10 say for domestic sales i have maintained the tax classfication records for the material and given value as for the condition type . since it is domestic sales

And when i wanted to create the same material for sales area say 1001/30/10 for export sales . i cant able to maintained the the tax classification as zero. because if i change it the same changes is getting affected to the other sales area also

in short what ever changes i do for export it is automatically going into the domestic .

how should i do the changes in such way that the same material i can keep for domestic and as well as for export

the sales org is different, dist channel is different only the division is same

kindly help me out

[Lakshmipathi · Accepted solution]

Normally, we differentiate the tax classification for customer and not for material as you levy tax on customer and not on material. So have a different tax classification to customer and create a sale order.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

hi ,

probably i didnt give my question clear

the problem is i have material which i already extended with a sales area say sales org : 1000 , dist chanl : 20 , div 10 which is for domestic sales , and i have given tax classifcation of material over there in material master for some vat .

and the same material when i want to do for export sales like the sales areay will be : 1001 dist chanl : 30 and div : 10

i need to give the tax classification of material over there as zero . becasue for export senario it should be maintained as zero right

in this case the system is not allowing me to do so.. like if change zero all the tax classifcation type for export sales area

the same is getting changed in the domestic sales area also

how to go about it

[Lakshmipathi · Accepted solution]

probably i didnt give my question clear

No I understood your question clearly and perhaps you would not have tested my suggestion. As already indicated, for tax classification, you should consider a material but a customer. For export customers, you would be maintaining zero as tax classification as like one for domestic customer. So you can have a different tax code assigned in VK11

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Hi Kumi,

Taxes in SAP are calculated based on the source and destination. Whether you sell domestic or you export, the source of material is not changing. For example, Suppose your plant is in US and you are selling domestic within US. Your source and destination, both are US. When you export, your source still remains US but your destination will now be the country where you are exporting, for eg, France (FR).

When you setup the tax classification in material master, you tell SAP that the material XYZ is a taxable material and the source plant from where the customer orders will be fulfilled from is US. You define tax classification, say 1 for full tax for country US.

Now when you define the customer master, you maintain the country from where the delivery originated from in the Billing tab. So if the delivery is originating from US and the customer happens to be a domestic customer, you maintain tax classification for US as 1. If the delivery is happening from US and the customer happens to be an export customer, say france, you maintain tax classification for that french customer as US, 0 where 0 means no tax.

Always remember that the country is the country from where the delivery originated in both material master (sales org tab) and customer master (billing tab).

When you maintain the condition record for taxes, you tell SAP that for shipments from US to US, using tax classification, 1,1 tax code, say Z1 - charge x% of tax. The second record you maintain in SAP tax condition record is that you tell SAP that when shipments from US to FR, use tax classification, say 1,0 with tax code, say Z0 which is setup as 0% in FICO.

Let me know if you need any more help on this subject and I will be more than happy to guide you.

Thanks

Kapil Sharma

[Former Member · Accepted solution]

thanks for your inputs. actually after i put the question then i thought it is possible with the answer u gave, but i still had a doubt because this is the first time i coming across a case like this using the same material for domestic and export (raw material)

thanks for ur valuable suggestions

[Former Member · Accepted solution]

hi kapil,

thanks for your inputs, yes i got the idea but just was double minded whether i have to do like this or is there any other way ..

thanks for confirming it