VAT

[Former Member]

Dear Gurus,

I am having a business scenario in food industry and has sales in various states.My question is do we have any provision to maintain the vat taxes for various states by using one taxcode for example A1-4% vat for all the states where the sales takes place within the state.

The problem is we are able to pick the vat tax as we maintained the condition records but its hitting a different G/L account in the testing phase.CIN is not activated as there is no Excise duty.Can anyone please provide a solution for this.

Thanks in advance.

Regards,

Ramesh.

[Lakshmipathi · Accepted solution]

One tax code can have only one percentage and if there is a requirement such that you want different VAT percent, then you need to go for different tax codes.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Dear Mr.Lakshmipathi,

May be you have not understood correctly.Let me explain it more clearly and correctly

1.As i have told my client is in food business who has depots all over the country,and sells the products accross the country from various regional head quarters(Sales offices).So as a rule if the sales are intra state then the system will pick VAT and if inter state then CST.

2.My requirement,as told by you we have assigned one value to a tax code (say A1- 4%).Can i use the same tax code with the same percentage for different states if the invoice is created intra state,but the values should be posted to different G/L accounts for different states.Is it possible.

CIN is not activated as Excise duty is not applicable.

Regards,

Ramesh.

[Lakshmipathi · Accepted solution]

First let me know how your pricing procedure is configured.

I am sure, for VAT condition type, you would have assigned one Account Key and you cannot have different Account Keys for one condition type.

Having said this, on your query

Can i use the same tax code with the same percentage for different states

the answer is NO. You have to have different tax codes which should be assigned to different G/L Accounts in OB40.

thanks

G. Lakshmipathi

[former_member206976 · Accepted solution]

Hi,

As Mr. Phani told your requirement will fulfill with the Business Place configuration.

I hope you did the configuration of Tax Determination in Basic setting.

To trigger Vat Condition value in your documents I hope you are using the combination "country/plant or plant region/ Customer region/Taxcl of material/ tax classification of customer" table in your aceess sequence which is assigned to your VAT condition type.

Steps:

1 Keep the VAT codition types condition category as "D"

2.Define the account key which is assigned against VAT Condition type in your pricing procedure in OBCN (example JV6) under output tax type.

3. Define a Tax code under output tax

3.Maintin condition records in VK11 (with the single tax code)

4.Maintain the G/L account assignment against your account key & tax code in ob40 by defining the rule as tax

5. Business place config.

Go to SM30 Maintin entries agaist the follwing mentioned tables.

A. VIDBUPLA_ACTIVE - Activate Business Place

B. J_1BBRANCV - Define Business Place (generally with same as plant code)

C. J_1BT001WV - Assign Business Place to Plant

D. J_1IT030K_V - Tax Code to Business Place : Here you will maintin the G/L accounts against the same tax code with various business places & G/L accounts.

Note: one entry should maintin in OB40 for each tax code ( J_1IT030K_V table is extension table to T030 - OB40 transaction)

I hope this will fulfill your requirement.

Regards

bvdv

[PhaniKalvagunta]

Hi,

Please check whether this solution works for you.

Goto

SPRO --> Financial Accounting --> Financial Accounting Global Settings --> Tax on sales/purchases --> Basic settings --> South Korea --> Business Places --> Define Business Places.

Here you create all the states as business places and save.

Next goto T Code SM30

Enter the table J_1IT030K_V and enter the transaction for VAT ( Eg JN6 etc This is the account key for Tax procedure)

Here you can maintain the same tax code for different business places ( states in your case) with different G/L accounts.

Please sit with your FI guy to configure this.

Phani Prasad.

[Former Member]

Dear Phani Prasad,

As you have suggested we have created various states as business places.In the table J_1IT030K_V we have assigned the tax code to the combination of business areas.But there are two columns for G/L accounts and do we need to assign same G/L account for the above or can we have different G/L accounts.

Thanks & Regards,

Ramesh.

[PhaniKalvagunta]

Please assign the same G/L Accounts.

Regards,

Phani Prasad

[Former Member]

Dear Phani Prasad,

In OB40 we have assigned G/L account to JN6,we have tried both the ways.At first we have assigned taxcode and g/l account

and as the system is picking the g/l account which is assigned in OB40 only.Its not picking the g/l account from the table.

Regards,

Ramesh.

[Lakshmipathi]

system is picking the g/l account which is assigned in OB40 
Its not picking the g/l account from the table

This is a standard SAP behaviour and that is why, my above suggestion holds good.

thanks

G. Lakshmipathi

[former_member206976]

Hi

It will pick, make sure that you have maintined the entries in the table (SM30- J_1IT030K_V ) manually.

Regards

bvdv

[PhaniKalvagunta]

HI,

I assume that you have not assigned the business places to respective plants.Please assign and then try.

Regards,

Phani Prasad

[Former Member]

Hi Phani Prasad & BVDV,

Thank you for sparing your valuble time and thoughts the issue is solved.

Regards,

Ramsh.

[Former Member]

HI All,

I am facing the same issue....system is picking GL from the OB40, IT is not picking from the table.J_1IT030K_V...

I have configured all the steps....need to activate any thing to achive this...please guide me..

Thanks

Chandu

[Former Member]

Dear Ramesh,

I am facing similar problem. I have maintained entry in OB40 as well as in J_1IT030K_V. However the system is taking GL Account assigned in OB40 while doing FB60. Please share how have you resolved the issue.

Its urgent....

Regards,

Ganesh

[Former Member]

solved....