How are taxes determined in SD

[Former Member]

Can someone explain to me what SD looks at when figuring taxes on a SD billing? I create sales orders with material items from our warehouses on them. Is SD looking at the jurisdiction code on the warehouse plant or on the business partner or a combination of both.

[Former Member · Accepted solution]

Hi Burgdorf,

SD looks for the Tax jurisdiction code in both plant and business partner to determine the tax.

Thanks

Kapil Sharma

[Former Member]

From the question it seems you are asking the tax calculation as related to the country US.The answer is Yes .The taxing jurisdiction would be based on the Jurisdiction of Plant or the jurisdiction of the Business partner based on whether the product is picked up from the Plant or delivered to the customer. This provided you made necessary settings in your system to correctly determine the taxing jurisdiction.Incoterms may be driving these settings in your system based on your business requirement.

Please let know if this explanation helps.

[Former Member]

Can you please explain how incoterms can drive the tax jurisdiction? We use free house on all sales documents.

Thanks

Rebecca

[Former Member]

I was wondering if anybody had some more information on this topic.

Thanks

Rebecca

[Former Member]

Hi Rebecca,

Tax get sdetermined on four standard rules:

1. Departure country (Depivering Plant)

2. Destination Country(Ship-to-Party)

3. Customer tax classification (Cutsomer Master)

4. Material Tax Classification (Material Master)

You may go thr below link for more info:

http://sap-img.com/sd009.htm

Reward if it helps

Regards

Srini

[rmazzali]

to better understand your customizing, remember to execute a pricing analisys in the order item pricing, so you can see wich are the accesses and the data used in the VAT condition (normally MWST condition).

reward if helpful.

regards

Roberto Mazzali

[Former Member]

Tax calculation in SAP generally takes the following factors into account:

1. Tax classifications of Customer's Ship-to party.

2. Tax Classification of the material

3. where the business is being transacted.

With the help of these, the tax rate per item is determined in the sales order.

Regards,

Gauravjit

Reward points if solution is helpful.

[Former Member]

Is there a way to configure SD to only look at the business partners ship to address.?

[former_member197269]

Hi,

Following link would be helpful :

http://www.sap-img.com/sap-sd/sap-sd-interview-questions.htm

http://help.sap.com/bestpractices/BBLibrary/Documentation/J57_BPP_EN_ZH.doc

http://www.sapfans.com/forums/viewtopic.php?t=271458&sid=76ce55ea8a206faba3b4d2bdf9004059

Pls assign points as way to say thanks