TAX Determination in SD Pricing

[Former Member]

Hi,

Can someone clearly explain or send me the link or document regarding the TAX Determination in SD.

Useful answers will suitably be rewarded.

Regards,

Sreekanth

[Former Member · Accepted solution]

HI Sreekanth,

tax determination in SD takes place on 4 standard rules:

1. Departure Country (Shipping Point)

2. Destination Country (Ship-To-Party)

3. Customer Tax classification (You give in Customer master)

4. Material Tax Classification ( You give in Material Master)

Rest of the determination takes places as per condition Technique i.e, You have a tax determination procedure - TAXINJ / TAXINN

System will read pricing procedure and reads MWST (TAX Condition Type) against this you have access sequence. System will determine a record, against this record you can maitain Tax Code. Once system reads this tax code it will read data maintained in FTXP against this tax code and copy the same in sales order.

Hope this provide some understanding

Reward Points if it helps.

Regards

Srini

[Former Member]

HI Sreekanth,

GO thr the below links:

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

CIN:

http://help.sap.com/saphelp_47x200/helpdata/en/09/ebf138cdd78a4be10000000a114084/frameset.htm

http://help.sap.com/saphelp_47x200/helpdata/EN/40/a23c39129ffe2ee10000000a114084/frameset.htm

http://help.sap.com/saphelp_47x200/helpdata/EN/40/a23c39129ffe2ee10000000a114084/frameset.htm

REWARD IF IT HELPS

Regards

Srini

[Former Member]

hi,

As u know tax is determined in SD with the help of the tax procedure maintained in FI . fine follow this path ,

FI-tax on sales/purchases-indentify any of the tax porcedure, eg. TAXINJ

Assign this to the country ie, IN,

Caluculation Procedure choose output tax mention the desired percentage here eg 4%. as an SD consultant u will be mentioning the output tax.

once this is created. get back to SD-Basic functions-Tax determination-maintain tax relevency of master data, here u wil be mentioning the tax classification ths with respect to the caluculation procedure wether u want the tax to full, half or any other desired choice,

Now u can find in the customer master-sales area-billing tab u will find provision for mentionig the tax classification, similiarly in material master sales org 1 data,

hope i have answered you.

regards

giri

[Former Member]

one thing to confirm that are u using TAXINN or TAXINJ procedure.

Because in TAXINN no need to include the output tax condition types in taxation procedure. Because rates,values of taxes will come from the condition records. Because TAXINN is the advanced to TAXINJ.

We are also working on the TAXINN procedure and TAXiINJ procedure.

In TAXINJ in taxcode itself will maintain the rate of tax to the respective condition code this involved with FI people. But in TAXINN our SD can do the everything without much intervention of FI people.

Award the points if it is helpful

[Former Member]

Hi Mohan,

I went thru your explanation and also the link which u had posted but i am not able to get a clear link. If you can explain how the tax category is linked to pricing and also if you can explain by giving a example like our indian tax structure as VAT basically i am getting confused as in our business there are 4 tax categories defined for customer and material.

Regards,

Sreekanth

[Former Member]

Hi

Tax Procedure is defined by FI

Pricing procedure is defined by SD

Both these procedures have a common condition type (say MWSA).

for this condition type we maintain the records ( Tax codes )

The FI tax determination (and therefore SD) is based on country. A plant

is then assigned to a country and so are customers. That is why when you

add a new plant to a different company, you need to enter a new tax

indicator on the material master record.

Mohan

Award points if it helps.

[Former Member]

hi

1. FI - u should be maintained taxes condition type in tax procedure

2. FI - Create Tax code - FTXP

3. SD - maintain tax category in ur pricing procedure (for eg : UTXJ or MWST )

4.SD - Maiantained condition record for UTXJ or MWST

[Former Member]

Hi,

Go through this

<u>http://sap-img.com/sd009.htm</u>

Mohan

Award points if it helps.