condition types in SD and Tax procedure

[Former Member]

Hi,

I want to create a new VAT (output) tax code. The conditions of the tax code are as under.

VAT on sales ...................u2026u202610% u2026..Condition type ..VAT1u2026account key..V1

E.Cess VAT on sales ....... u2026u20262% u2026...Condition type ..VAT2u2026account key..V2

S&H.E.Cess VAT on sales u2026u20261% u2026..Condition type ..VAT3u2026account key..V3

1. 1st of all I need to create three tax condition types (VAT1, VAT2, VAT3) in u201COBQ1u201D and assign then to the tax procedure through u201COBQ3u201D and at the same time we need to create the these tax condition types VAT1, VAT2 AND VAT3 in SD via V/06 and assign assigne them to the SD pricing procedure using V/08. The accounting keys in FI-tax procedure and the SDu2019s pricing procedure will be same i.e. in OBQ3 and in V/08 we will plot the same V1, V2 & V3 account keys against the condition types VAT1, VAT2 & VAT3 respectively. This is what is my understanding. Pls correct me if I have mentioned anything wrong.

Questions:

i. Why we need to maintain/replicate the conditions types in both places i.e. OBQ3 and V/06 as the condition class

and the condition categoris of condition types in OBQ3 and V/06 are SAME.

ii. Ideally the output u201Ctax condition typesu201D should be created in Finance module and the same should available in the drop

down of SD priving procedure for selection. What is the need to create them again in SD? Why is it designed like this?

[Former Member · Accepted solution]

Hi,

As per my understanding you are trying to create Excise condition types those are not VAT condition types.

BED-10%

CESS-2%

H-CESS-1%

So currect it and also no need to specify these condition types in OBQ3.Just maintaine these condition types in V/06.

and create condition records for these

Note:use condition class for all these condition types is *"A" (Discount or surcharge) Calculation type A (Percentage)

Only The excise condition types from MM need to be maintained In OBQ3.

From SD we dont specify any condition type in Tax calculation procedure.

Also no need to maintaine account determination in OB40.You can maintaine it in VKOA itself.because for condition types which will have condition class as "D" (Taxes)are only maintained account determination in OB40.

So in your case do as i said.

Step 1: Create 3 conditio types in V/06,condition class as A and Calculation type as A for 3 condition

Step2: Place these 3 condition types in V/08.maintaine the sequence as above you said.

Step3: create condition record in VK11 for all 3 condition type.

Step4: maintaine VKOA setting.

Thank you

[Former Member · Accepted solution]

Hi Ravi,

I dont want to maintain Excise condition types I want SD or output related taxes only.

What I understood from your post is: (1) we need to maintain the taxrelated condition types in SD pricing procedure and not required to maintain them in OBQ3 (2) we need to create the account keys in OB40 and the same have to be assigned against the conditions types in V/08. Pls validate the above two points.

If we follow either TAXINN or TAXINJ tax procedures, what would be impact on the creation of output tax condition types in OBQ3?

Thanks

Anil

[Former Member · Accepted solution]

Hi,

(1) we need to maintain the taxrelated condition types in SD pricing procedure and not required to maintain them in OBQ3

A) Yes exactly

(2) we need to create the account keys in OB40 and the same have to be assigned against the conditions types in V/08.

A) Account determination procedure is done in OB40 for Tax conditions.and account keys are assigned in V/08.

Here account keys are MWS,MW3,ERL etc.. we dont create these in OB40,just we assign these in OB40 and these are created in Pricing menu path.

Even no need to specify any VAT conditions in OBQ3.If you are creating condition type for taxes,also you need to maintaine tax codes in FTXP T-code.

Let me know for furthur clarification.

Thank you,

[Former Member · Accepted solution]

Hi Ravi,

I have not understood the last part of your reply which contains FTXP. Also validate the follwing conclusion.

The SD pricing procedure related account keys should be maintained in OV34 and the tax condition related account keys are to be maintained in OBCN.

Thanks

Anil

[Former Member · Accepted solution]

Hi,

you can create all accont keys in OV34 no need to go for OBCN.

and here tax code is a parameter to determine the tax values and post to the required G/L.Even without Taxcode also you can post the tax values to the G/L.but in certaine casses By using tax code we can post the tax values more than 1 G/L account.

But it is not possible with out Tax code

Ex: VAT1--

---

Tax code1--

---

204020(G/L)

VAT1--

---

Tax code2--

---

204030

[Former Member · Accepted solution]

Hi ravi,

No ravi kumar the account key which is created in OV34 is not appearing in OB40, then how will you assign a GL code against the account key?

[Former Member · Accepted solution]

Hi Anil,

Yes you are currect, maintaine tax relevant account keys in OBCN others can be maintained at OV34.

Thanks for your information.

Thank you,

[Former Member · Accepted solution]

Thank you all Seshu, Ravi and Khaprevipin

[Former Member]

HI,

I want to create a new VAT (output) tax code. The conditions of the tax code are as under.

VAT on sales ...................u2026u202610% u2026..Condition type ..VAT1u2026account key..V1

E.Cess VAT on sales ....... u2026u20262% u2026...Condition type ..VAT2u2026account key..V2

S&H.E.Cess VAT on sales u2026u20261% u2026..Condition type ..VAT3u2026account key..V3

For the above requirement you no need to create conditions in tax procedure, create condition types in Pricing procedure,

create account key in OBCN and assign GL account in OB40, in OB40 there are two options, with tax code and with out ax code,

after that maintain condition records for VAT, Ecess and HECSS in vk11, if you are maintaining tax code then enter tax code in condition records.then system will pick tax conditions in sales order

Thanks

seshu

[former_member477577]

Hi Anil,

In OBQ3 pricing procedure we are maintaining for country and V/08 is maintaining for sales order calculation.

[Former Member]

Hi,

Can any body validate my understanding and also answer my questions.

Regards

Anil

[former_member477577]

Hi,

Very brief ans. In OBQ3 pricing u maintain for Tax calculation purpose where u maintain condition record(OBQ1) with TAX code with respect to TAXINN pricing procedure,u can see all conditions types are related to TAX only.

In V/08 u maintain pricing procedure for normal customer price what u r going to apply in sales order or PO.

we maintain condition record for V/08 because of different region and customer.

hope this will help,plse write if any clarification.

Vipin

Edited by: KHAPREVIPIN on Nov 1, 2011 5:26 AM