Tax condition types issue in sales order

[Former Member]

Hi Friends,

I am bit lost with the following issue. I have searched sdn and other SAP forums for this. There were similar issues discussed but they didnu2019t solve my issue. There was exactly similar issue but it was unanswered. So I am posting the issue here to get some inputs.

This is the Indian tax scenario. I have configured pricing procedure where I have JVAT and JCST. If the company is selling to customer in the same state where company is located letu2019s say region 05 JCST 2% applicable. If the customer is outside region 05 then 5% JVAT should applicable.

=> In the pricing procedure it was like

150 0 JVAT

160 0 JCST

Both will be calculate on the gross value.

=> I have created two new tax classifications for customer master.

JCST 2 Tax liable outside region 05

JVAT 3 Tax liable inside region 05

So in the customer master I have both JCST and JVAT. I have created a customer with region 05 and in customer master under Billing document tab I have entries like below

Country Name Tax Category Name Tax classification Description

IN India JCST IN: CST 2 Tax liable outside region 05

IN India JVAT IN: VAT 0 Tax Exempt

=> I have created condition record for JCST with the following key combination

Country u2013 IN

Region of dlv. Plant u2013 05

Region u2013 05

TaxClass1-Cust. -- 2

TaxCl.Mat u2013 1

Amount u2013 2 percentage

Tax code u2013 A1 (TAXINN A1 2% Output tax)

=> With the above condition records maintained for JCST and maintaining tax classification as 2 for JCST and 0 for JVAT, I assume in Sales order SAP should calculate tax JCST 2 percentage. But in sales order SAP is not considering JCST and JVAT. For JVAT it makes sense as it does not have condition records. But I didnu2019t get the reason for not getting JCST. When I checked analysis and click on JCST condition type it says condition record is missing. Surprisingly when I click on the access details it shows u201CTaxClass1-Cust. as 0u201D it didnu2019t show as 2 as maintained in the customer master.

When I change the Tax classification for JVAT from 0 to 1 or from 0 to 3 in the customer master, in the analysis when I click on access details for JCST it shows tax classification maintained for JVAT that is as 1 or 3 so it seems SAP is not considering JCST in customer master at all. Why is that so?

The access (condition table) for JCST and JVAT are same.

Any inputs?

[Lakshmipathi · Accepted solution]

Ideally, in customer master, only for the first Tax classification (assuming in your case, couple of tax classifications are flowing), you should maintain the required numerical value. Leave it blank for other fields, since any customer will fall under either VAT or CST billing and not both.

Now in VK11 for your tax condition type (UTXJ / MWST), you can differentiate with this customer tax classification. Say tax classification 1 for VAT and 2 for CST. With this combination, while creating sale order, system will fetch the tax condition type.

Of course, you can create many tax classifications in IMG SD > Basic Functions > Taxes > Define Tax Relevancy of Master Records > Customer Taxes.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Hi,

Thanks for your time. Yes, I have entered Tax classifciation 2 (Tax liable outside region 05) for JCST and 0 (Tax Exempt) for JVAT. I cant leave it blank as system gives error message as Check tax classification; maintenance is incomplete

if I leave JVAT as blank.

In VK11 I have created condition record for JCST with tax classification 2 but still system does not fetch the tax condition type JCST. System is not considering tax classification 2 (as per the analysis in sales order) from customer master at all (for JVAT I havent created any condition record yet, so it makes sense for not fetching JVAT in sales order as this customer should get JCST)

While creating or viewing JCST condition record, system is giving the below information

Condition type JCST does not allow supplementary conditions

Message no. VK387

Diagnosis

Branching to the additional condition screen is only allowed for conditions with a permitted condition type.

Procedure

Check the Customizing setting for the condition type. The additional pricing procedure for this condition type is not entered.

Does it have any impact?

Edited by: SAP_2006 on Aug 3, 2011 11:08 AM

[gomatheeswaran_palaniappa · Accepted solution]

Hi,

Tax classification of your customer will be part of your sales order header. I believe the sales order would've been created before change. So updating the pricing wont update the classifications at billing document tab of sales order header. For testing, please maintain tax classification 2 in the order header and update pricing with 'G' option.

For automatic update of this tax classification, you have to create a new sales order every time after the change in customer master data / make a change at billing document tab of order header as I explained before.

For this condition supplement error, please remove the pricing procedure attached to your condition type JCST at V/06 transaction, if something is assigned.

One small suggestion which is out of your question: Although the logic and the key combination are correct, naming convention of your condition type is bit confusing. Ideally CST is for inter states and VAT is for intra state.

Regards,

P Gomatheeswaran

[Former Member · Accepted solution]

Hi,

Thanks for your time and suggsetion. Yes, I am creating everytime a new sales order after I change it in the customer master. It is not working as I expect even after entering 2 in the Alt.tax classific. field on the billing document tab in sales order header and updating pricing with G option. Regarding condition supplement error, there is no pricing procedure entered in condition type V/06.

After doing some tests I understand one thing which is infact bothering me. To explain it in simple:

In the customer master I have it like below

Country Name Tax Category Name Tax classification Description

IN India JCST IN: CST 2 Tax liable outside region 05

IN India JVAT IN: VAT 0 Tax Exempt

now when I create a sales order and check analysis, ZCST access shows 0 for TaxClass1-Cust. (instead of 2) and ZVAT access shows 0 as well for TaxClass1-Cust.

If I now change the customer master like below

Country Name Tax Category Name Tax classification Description

IN India JCST IN: CST 2 Tax liable outside region 05

IN India JVAT IN: VAT 1 Liable for Taxes

and create a new sales order, in the analysis ZCST access shows 1 for TaxClass1-Cust. and ZVAT access shows 1 as well for TaxClass1-Cust.

+So it seems in this case, system is not caring about JCST in the customer master. Whatever changes I do for ZVAT also affecting ZCST. That is the reason even thought I have condition record for JCST with tax classification 2 system is not fetching it in sales order.+ not sure WHY is it so

Agree with me?

[gomatheeswaran_palaniappa · Accepted solution]

Hi,

I agree with your test results. Please check which field in Alt.tax classification corresponds to ZCST and maintain relevant classification indicator and update pricing G.

From your analysis, tax classification 1 corresponds to JVAT. So, under Alt classfn 2 field, please maintain 2 and try. Also in your key combination for ZCST, please include field corresponds to tax classification 2.

Regards,

P Gomatheeswaran

[Former Member · Accepted solution]

Hi,

It still didnt work even after I change Alt.tax classification in different combinations.

I have found the following two threads which relates to the same issue that I am facing currently.

Link1: [Tax Categories not working|;

The basic reason for the problem I understand is that when I maintain MULTIPLE TAX Classifications for customer it is not picking up second one. It is stopped at 1st one

.

Link2: [Tax condition(JVAT) of ship to party is not triggering in Sales order]

Solution: 
When we have 'n' tax categories then we should have 'n' condition tables..
I have 2 tax categories: JCST and JVAT but i have only one condition table 368 which is wrong.. i should have 2 condition tables.. so i created another con. table 468 and assigned to access aeq JLST.
then when i create cond. record , we have to select the appropriate table then it will fetch accordingly.. in sales order..

Is this solution correct? Actually both JCST and JVAT have same condition table 368. I was in a impression that we can have same table for two different condition types. Since there is differentce in TaxClass1-Cust. in the condition records, system should fetch the correct condition type in the sales order. Am I correct. If I have to create two condition tables I would create a new one with similar access copying from table 368.

Please provide your views

[gomatheeswaran_palaniappa · Accepted solution]

Hi,

Sorry for the late reply. You observation is correct. Please keep two condition tables. In your access sequence KOMK-TAXK1 field (Tax classification 1) should be used for VAT condition type and KOMK-TAXK2 (Tax classification 2)should be used for CST.

Please keep as above and set a condition record and try again. It will refer proper values from customer master.

Regards,

P Gomatheeswaran

[Former Member · Accepted solution]

Hi,

As the second thread in my earlier post says, I think it is becasue of two condition types using the same accesses. As far as I know there is no problem using the same condition table for many types but in this case since both are in the customer master value in CST is getting affected by VAT. I can have create new condition table in order to avoid master data maintenance, but in this case since we dont need to maintain much master data I have created a customer outside region with tax calssification as 2 for both VAT and CST and for inside region with tax classifcation 1 for both VAT and CST. Now based on the conditon records system is taking the correct tax condition type.

Thanks mate for your time and thanks others.

[Former Member]

Hi,

Please check with FICO Consultant for Tax code For A1 weather the 2% maintained for tax code and Account key.

Dev.

[Former Member]

Hi

The T.Code is ( FTXP )

Dev

[od_manikandan]

Hai SAP_2006,

We are also having similar requirement and inform the USER to maintain

In our customer master we gave like

Customer master:

Sales area data

Billing documents

JTX1 Tax Jurisdict.Code d 1 Full Tax 12.5%

JTX2 Tax Jurisdict.Code d 1 Full Tax 12.5%

JTX3 Tax Jurisdict.Code d 1 Full Tax 12.5%

JTX4 Tax Jurisdict.Code d 1 Full Tax 12.5%

To get LST we maintain

Country u2013 IN

Region of dlv. Plant u2013 05

Region u2013 05

TaxClass1-Cust. -- 1

TaxCl.Mat u2013 1

Amount u2013 12.5 percentage

Tax code u2013 A2 (TAXINN A1 12.5% Output tax)

To get CST

Country u2013 IN

Region of dlv. Plant u2013 05

Region u2013 06

TaxClass1-Cust. -- 1

TaxCl.Mat u2013 1

Amount u2013 12.5 percentage

Tax code u2013 A2 (TAXINN A2 12.5% Output tax)

In case if they want CST 2%, then user has to go

Sales order header Biiling

Alt tax Classification : Shouls change the Blank to 2 in the 1 box out of 4.

for that we maintained condition record as

Country u2013 IN

Region of dlv. Plant u2013 05

Region u2013 06

TaxClass1-Cust. -- 2

TaxCl.Mat u2013 1

Amount u2013 12.5 percentage

Tax code u2013 A3 (TAXINN A3 2% Output tax)

This doesn't require to change customer master regularly and default system finds LST or CST 12.5 unless they change to 2% system will not change automatic. So CST 2% Vs CSTfull tax risk is also avoided.

Regards,

Mani

[Former Member]

Hi,

Thank you but this is bit complicated for me as I'm not familiar with India tax setup. What is LST? what is 12.5%. Why do we need JTX1 JTX2 JTX3 JTX4 ?

Our requirement is that if the end customer is in region 05 the tax condition type should be JVAT which is 5% if the customer is outside region 05 the tax condition should be JCST 2% I have maintained condition records based on it. But system gets stopped at JVAT it is not even considering JCST. What ever I change corresponding to Tax classification for JVAT in customer master, it is affecting JCST as I can see this in analysis in Sales order

???

Edited by: SAP_2006 on Aug 4, 2011 12:44 PM

[Former Member]

Hi,

Tax Classifications are taken from the Ship to Party. Are u maintaining a separate ship to party. Does it have 0 in JCST.. IS the region for ship to party '05'.

Please check.

Regards

Dany

[Former Member]

Hi,

Thanks for your time. No seperate Ship to party. In this case Ship to is same as Sold to, Bill to and Payer. So it has 0 in JCST and 05 as region. Not sure why SAP is considering JVAT but not JCST in the customer master.

Does it have any sequence influence? I mean I have JVAT first and JCST second in the pricing procedure, however in customer master under Billing Documents tab at Tax Category I have JCST first and JVAT as second. I dont think it has any impact as based on the Tax classification and the condition records SAP would calculate the correct tax but to be on safe side I would like to confirm.

Not sure whether its strange issue or I missed some step.. totally lost..