Tax category in customer/material master

[Former Member]

Hi,

We have sales org UK11 in country UK. for one of our material created in sales org UK11, in the material master tax data, the following tax data is maintained.

a) country ES (spain), tax cateogry as ZT65 (output tax spain) and relevant material tax classifcation.

b) Country is Uk, tax category ZT09 (output tax-UK) and relevant material tax classification.

My question is what does the above entries suggest. Does it suggest that UK11 sales org can buy material from spain plants (inter company billing). If yes, does it mean that tax category ZT65 will be used in inter company invoice raised on UK11 by spain and tax category ZT09 will be used for outbound sales invoice to final customer from Uk11 sales org ?

In the enterprise structure we have UK sales org assigned to spain plants !!

regards

[Former Member]

Hello Pamela

You see UK and Spain Tax categories in customer and material master because of the following reason:

Firstly the countries and therefore the tax categories you see in the master data are the Departure countries, i.e.., countries where plants exist. The countries of the plants which are assigned to the (Sales Org + Distribution channel) combination ( Config OVX6) you entered determine the countries/categories that show up in the masters.

That's all this info suggests. So when creating a sales order, once sales area and delivering plant are picked, then the system picks up the tax classifications for customer and material from these entries.

No, it does not suggest that UK11 sales org can buy material from spain plants (inter company billing).

No, it does not mean that tax category ZT65 will be used in inter company invoice raised on UK11 by spain and tax category ZT09 will be used for outbound sales invoice to final customer from Uk11 sales org.

What tax category ( = Pricing condition in SD pricing) will be used to compute taxes comes from SD Pricing Procedure and country tax procedure (FI).

Hope this helps.

[Former Member]

Hi Pamela,

The answer to your second question is yes, i have not worked on Inter company billing so i don't know the answer to the 1st one.

hope this helps.

Regards