Tax conditions

[Former Member]

Hi All,

need your help..

Below is the requirement from the business for tax condition types.

there are two types of condition types we need to define one is for sales Tax and one more is for Service tax

but once the sales order is created only one condition type should appear either it should be sales tax or service tax not both.

And also it should be automated no manual entries the values should be picked from condition record.

Thanks in advance

Regards

Satprk

[Former Member]

Hi Satprk,

Solution is very simple. Please find the below example.

For example, you have JCST/JLST condition types for Sales Taxes. JSVD, JEC3 and JSE4 for Service taxes.

Now for JCST - Maintain 0, 1 and 2 Classifications.

0 - Not applicable

1- With C form 2%

2 - Without C form 4%

For JLST - Maintain 0 and 1 Classifications.

0 - Not applicable

1 - VAT applicable 13.5%.

Similarly, for JSVD, JEC3 and JSE4 - maintain 0 and tax classification.

0 - Service tax applicable

1 - Service tax not applicable.

Now at the Customer Master.

Maintain JCST and JLST accordingly.

For JSVD, JEC3 and JSE4 as 1 always.

Now at the Material Master.

Maintain JCST and JLST accordingly.

For JSVD, JEC3 and JSE4 as per the material.

For example, if the material is a "Service Material" (Mostly it will be created as dummy material), maintain different "Item Category Group" and make this item category as "Order Related Billing" (This can be controlled through the Item category - Billing Relevance).

So for this service material, Maintain Service Tax condition Types as 1 and 0 for the remaining material.

Please let me know if you have any more doubt on this.

Regards,

Mullairaja

Edited by: MullaiRaja on Nov 9, 2010 9:59 AM

[jignesh_mehta3]

Hello,

I believe you either need Sales tax or Service Tax in a particular Sales Order.

I also believe that if your are Selling Products then you need Sales tax & if you are selling Service you need Service Tax.

This means that the Material Codes (& material types) would be different for Products & Service. This also means the Condition Types (tax Category) of Sales tax & Service tax would be different.

Thus in Material Master insert different Tax Classification Indicators in Sales: Sales Orgn 1 Tab for Tax category of Sales Tax & Service Tax.

Subsequently maintain different Condition Records for require combination of Tax Indicators.

Thus in Sales Order, if you are selling Product, Sales tax would be picked & if you are selling Service then Service tax would be picked.

Hope this helps...

Thanks,

Jignesh Mehta

[Former Member]

Hi Satprk,

First decide on which condition these two taxes will appear in Sales Order. As the requirement iss that any one of them will appear in one transaction so you have to create two condition types based on two condition tables. Accordingly cistomer tax classificaiton and material tax classification data is to be filled up.Separate condition records are to be created for both.

It is to be assured that in one transaction two condition records should not give valid result. Then two condition types will be polulated.

In pricing procedures both are to be maintained and in the detail part of both the condition types in V/06 the manual condition option is to be chosen as 'D' so that no condition types of both be prcessded manually.

Generally sales tax is charged when a material is despatched with in the country in some other states of delivering plant state and Services tax is charged if any amount is to be payed to service vendor like commission vendor. Functionally in a business both can occur simultaneously. No this need is not generic. But as you explained if the business need is so, then understand nce more and try with above solution.

Regards

Indranil

[reazuddin_md]

Hi,

Can you explain, on what condition Sales Tax & Service tax should appear?

How you want to differentiate both taxes, If both are same, Can't you have single tax condition & different condition records based on relevant combination.

YOu can have different tax code in condition records for sales Tax & Service tax , can differentiate G/L accounts for Tax codes ( FTXP assign G/L accounts)

If your client insists to have 2 Tax cond types, then there should be various key combinations to identify differently.

Explore more in terms of key combination.

Else, you can use for "Condition Exclusion Groups"

Regards,

Reazuddin MD

[Former Member]

HI

Maintain the tax classification indicators in the customer master for sales tax and service tax.

Also maintain the both condition types in your Pricing procedure.

Maintain the specific condition records for the condition types so that in the sales order it can determine only one condition type.

In the definition of V/06 for your condition types in the field Manual Entries put the value as D so that the condition records are determined automatically.

regards

Prashanth