Tax calculation in FI-CA

[Former Member]

Hi Experts,

I need to calculate taxes in FI-CA on receiving tax code and jurisdiction code from external rating system.

Below is my understanding:

1) Use psoting area 2610 to to get the tax detrmination id

2) use tax determination id in TE011 to get the FI tax code.

My requirement is:

Use the tax code supplied by external system to get the actual FI tax code and apply the tax where in tax rate depends upon Jurisdiction code received from external rating system.

Could you help me with the steps to follow.

Thank you.

Depesh Kumar

[AmlanBanerjee]

Hi Depesh,

First of all, posting area 2610 is only used for the account assignments for the General Ledger items in Invoicing. It would not cater for the tax calculation for all other FI-CA documents, say manual adjustments etc....

Secondly, I believe that the getting the tax code and the jurisdiction code from the external third party happens in real time, so you have to develop an enhancement which will map the tax code in SAP and would calculate the tax for the particular FI-CA document.

Thanks,

Amlan

[Former Member]

Hi Amlan,

Thank you for your response.

You are correct that posting area 2610 is used for account assignments for the General Ledger items in invoicing.

But, In order to map external tax code to Internal FI-CA Tax code..we need to configure posting area 8123 where I can get the internal tax code for country and external tax code combination.

What enhancement I need to develop here? you mean to map external tax code to tax code in SAP FI-CA?

Can't we do it in posting area 8123?

Also, how the jurisdiction code + tax code in SAP leads to tax percentage and tax components as applicable at a given location?

Thank you.

Depesh Kumar

[AmlanBanerjee]

Hi Depesh,

I couldn't find any posting area 8123.

I would recommend you to maintain a custom table which would contain the external tax code vis a vis the SAP tax code.

Then you can enhance event 1110 for adding the tax items.Event 1110 creates the G/L items for tax on sales/purchases (structure FKKOPK) from the information in the business partner items.

Hope it helps...

Thanks,

Amlan

[Former Member]

Hi Amlan,

Please check enclosed screen shot for posting area 8123.

Do you think, still I need to have a custom table for this mapping?

In event '1110', you mean I need to populate the the field (Tax on Sales/Purchases Code) 'MWSKZ' in structure 'FKKOPK' with the correct SAP tax code?

If this is done, then how the jurisdiction code will play its role to know which tax is applicable at that location? Where I need to maintain the relation for tax code, jurisdiction code and corresponding tax rate?

Please suggest.

Thank you.

Depesh

[AmlanBanerjee]

Hi Depesh,

I could not find posting area 8123 for Utilities application area. However, I can see (from your sceenshot) that it exists for the IS-T application area.

Even if, you have posting area 8123, but it will only map the extenal tax code vis a vis the SAP tax code.but it will not map the jurisdiction code from the external system (I gathered from your initial post).

I guess you are looking for a combination of external tax code , external jurisdiction code , to find the corresponding SAP tax code and subsequently the tax rate applicable for the FICA documents.

Assuming I have understood your requirement correctly,  you would require a custom table to map the above and then retrieve the correct tax details that you can pass in event 1110.

Let me know if my understanding is incorrrect.

Thanks,

Amlan

[Former Member]

Hi Amlan,

Yes, I need to find the correct tax code for external tax code and jurisdiction code received from external system. i.e. SAP TM in our case.

My assumption was SAP TM system sends the jurisdiction code that will be same as jurisdiction code in SAP FICA (not sure on this)

And jurisdiction will be automatically taken care if I just find the correct FICA tax code.

Also, I need to check on this if the jurisdiction code received from SAP TM will be overwritten by jurisdiction code on Contract account level in FICA ? (in that case event 1110 needs to be implemented)

You approach could work but I am still trying to identify the standard way of doing it without event implementation.

Any inputs?

Thank you.

Depesh

[former_member215295]

Hi Depesh,

I hope I understood your question in right way  -

So basically there is a tax code T1 and tax rate will change based on the jurisdiction code and your question is how do we do that , right?

You can maintain those rates using transaction code FTXP.

thanks,

Vikram