Tax Classification / Determination Canada (JRC1, JRC2, JRC3, JRC4)

[Former Member]

Hi All,

Here is something on which I want to cross check with you.

I am setting up tax jurisdiction based tax determination for Canada, below you will see the activities that I have done so far. I want your valuable inputs and feedback in case I have missed out on any step. Also I mention some points that are not so clear to me.

For Tax determination in Canada I have done the following:

1) Our tax procedure in FI contains the following conditions:

JRC1 A/R Sales GST

JRC2 A/R Sales PST

JRC3 A/R Sales PST B +PST

JRC4 A/R Sales PST B +PST

2) added the following conditions in the pricing procedure for SD

3) Also matched the accounting keys in SD pricing procedure with the ones in FI tax procedure for tax conditions

4) in the SD pricing procedure set the tax conditions as statistical

5) add new access sequence based on customer/material tax classification and tax jurisdiction code in it

6) maintain appropriate tax condition records depending on the region using VK11

As a result of this setup when I create a sales order I can see the tax conditions being proposed and tax amount is also getting properly calculated.

My confusion is the following:

- I see in the sales order that the tax conditions appear twice??? Is this standard behavior or I can prevent it somehow?? I see that because of the tax jurisdiction code and tax code etc. it is proposing the conditions from FI (FTXP)

- The final tax amount is eventually correct though.

- The maintenance of tax rate/tax code etc. in FI is done through FTXP rite? Or is there any other way also. Coz I see in FI that for example condition JRC1 has a different access sequence assigned but I guess FTXP uses that access to store the records. Is my understanding correct?

In the End:

- I have also created some examples in which on the SD side I have maintained the tax condition record with the right tax code but I have left the tax % as blank. As result of this the condition appears twice but only the one from FTXP shows the % and calculation is based on it. Do you think it is the right way forward.

Kindly provide you valuable inputs.

Thanks!!

Sahadj

[Former Member]

Hi Ravi,

Thanks for the tip with CTXJ. I think that is the way forward.

As mentioned by you the conditions do appear twice but since I have marked the conditions as statistical on the SD side hence the calculation goes ok.

I will do amendments as per your suggestion and try to create some new examples.

Will update my results shortly.

Thanks!!

Sahadj

[Lakshmipathi]

May be you can have a look at the following notes:-

a) Note 1136387 - CYT: Enhancements for Canada

b) Note 498563 - Tax determination w/ jurisdiction and service tax in Canada

c) Note 609482 - CRM LOC: Internal Tax Jurisdiction Code Determination

G. Lakshmipathi

[Former Member]

Dear Sir

Is it possible provide Tax related notes for India.

a)Enhancements for India

b) Tax determination w/ jurisdiction and service tax in Canada

c) CRM LOC: Internal Tax Jurisdiction Code Determination

Regards

Rushi

[former_member184555]

Hi

Your pricing procedure should have the CTXJ condition and maintain VK11 condition record for CTXJ with 0% value and maintain the relevant Tax Code in that condition record. Based on this tax code the FTXP record will be hit and the tax values maintained there will be determined in the SD document. You need not maintain the VK11 conditon records for your tax conditions JRC1, JRC2 etc.,

Since you have maintained tax records for the JRC conditons in both VK11 and FTXP, the system might be determining the values twice. You can confirm this point by maintaining two different values for the same condition type (say JRC1) in VK11 and FTXP, create a sales order....and post your observations in the forum.

Thanks,

Ravi