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determination of tax without plant

Former Member
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Hello Everybody,

Please help me to know if we can determine tax without plant...if yes in which situation we can do this. Thanks

Accepted Solutions (1)

Accepted Solutions (1)

former_member186385
Active Contributor
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Hi,

In case of creation a credit memo document , you can give the tax without Plant

this is for example, you have sent 10 material to customer, in which one material is found defective

you might have already collect the output tax for that material and now customer wants the credit instead of  send the defective part, so you will create the Credit memo request a standard alone (in case if you want to create single credit memo document for more defective parts0

regards,

santosh

Answers (4)

Answers (4)

jignesh_mehta3
Active Contributor
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Hello Joy,

While other members have alreary given relevant suggestions & I need not write anything more here.

But coming to your requirement, can you explain your Business scenario, as to why do you need to determine Tax without enter Plant in Sales Doucment?

Thanks,

Jignesh Mehta

Lakshmipathi
Active Contributor
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Adding Shiva's comments, wherever there is a physical delivery of any goods is involved and there is an impact on inventory, there will be sales tax.  Wherever physical delivery of goods is not involved, there is no sales tax but service tax would be levied.

G. Lakshmipathi

former_member184080
Active Contributor
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Dear Lakshmipathi Sir,

I have seen in my previous projects that value related credit memo's the tax is calculated and adjusted accordingly. In this case we don't have any Inventory movement. Could you please correct me if i didn't understand the process.

Regards, Sai Krishna

Lakshmipathi
Active Contributor
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I intend to say that in normal sales cycle which means, tax would differ during the original sales happening from seller.  Credit Memos or Debit Memos would copy the preceding document and if tax has been levied during original sales, yes, in credit memo / debit memo also, system would fetch.  Even for this also, there is restriction in India (not sure on the period) that if returns is beyond six months, then the Business should not take credit of that.

G. Lakshmipathi

former_member184080
Active Contributor
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Dear Lakshmipathi Sir,

Yes. In India its for 180 days. Beyond that the tax should be Zero.

Regards, Sai Krishna.

Former Member
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Dear Joy,

You need to play in User Exits MV45AFZZ and RV60AFZZ against your requirement. Thanks.

Former Member
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Thanks for your reply. but I want to know in any normal case how do you determine taxes without using plant. That is the question asked in my interview

Former Member
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Hi ,

Determine tax without using plant.

Tax on sales and purchase is based on composite key called jurisdiction code that is unique.State,country,city.and zip code .Jurisdiction code is the key that determine the tax as per transaction based on ship from and ship to address .In case of retail sales the sales take place at the store hence and jurisdiction code picked up based on store location address..In case of typical sales transactionthe tax is determined based on ship to partner  on the sap sales order ship to partyand ship from address  is determined based on plant , warehouse etc

Moderator Message:

The above quote content is copied and pasted from http://srilogix.com/casesWhitepapers/Tax%20Rate%20Determination.pdf,

Plagiarism is strictly prohibited in SCN. Please review SCN Rules of Engagement and adhere them.

Action: Post unmark as correct answer.

Message was edited by: Jyoti Prakash

former_member186385
Active Contributor
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Hi,

In case of Intercompany sales you can use the Sales organization country as departure country for tax determination

regards,

santosh

Shiva_Ram
Active Contributor
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Per OSS Note 98143 - Problem during tax determination for items without plant it looks for service items without maintaining the plant the tax can be calculated using user exit.

Regards,

Former Member
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Dear Shiva,

I am not able to open the link provided by you. Thanks

former_member184080
Active Contributor
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Hi Joy,

You should have SAP OSS ID to see any sap note in service market.

For your understanding, I am pasting the note details ( I am not sure, i can do this or not - Moderator can delete my message if its against the forum rules)

Moderator Remarks: Content removed as impersonated from SAP Notes.

Message was edited by: Jyoti Prakash

jpfriends079
Active Contributor
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We appreciate your effort to contribute & help the needful. But, copying content or reproducing content from SAP Note is not allowed. Providing SAP Note Number & its relevant section to refer for reference/understanding and jest of note(how Note can be helpful to OP), should suffice the OP requirement.
As OP clearly mention,
That is the question asked in my interview 
Let OP put some effort to go through the content of the SAP Note referred & other suggestions. And try accordingly. Instead of spoonfeeding him with the contents from SAP Notes.
In addition that OP is mindlessly marking response as helpful answer, without even putting an effort to try it out or adding comment on his understanding.We wish you would keep that in mind, while contributing in future.
 
All the best.
Thanks, JP
former_member184080
Active Contributor
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Dear JP,

Yes. I will follow your ssuggestion.Sincere apology for any issues that has been occured due to my post.

Regards, Sai Krishna.

former_member184065
Active Contributor
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Hi,

Before in one of the Post ,You have explained " Tax Part " is important based on Plant ( as Delivering Plant ) .

Without Plant ,How to find out ,The Plant comes under Tax Part or not to give / pay the Tax on Materials ?

Thanks,

Naren

jpfriends079
Active Contributor
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Narendra Konnipati

You must be talking about XD03 liable for taxes

See, plant is not only factor which determines whether relevant tax is liable or not(please refer the grid explained by me). Whereas, it is one of the factor.

It is universal, Generally, Tax is determined based on

- Material Tax Classification

- Customer Tax Classification

- Departure Country of the plant

- Destination Country of the customer

Is there a possibility to create sales order without plant for selling a valuated stock? The answer is No.

Further, once you sold the goods and recovered the relevant tax from the customer and have paid the tax to the concern authorities. You don't recover the same again for selling it again.

Now, OP asked:

Please help me to know if we can determine tax without plant...if yes in which situation we can do this.

The situation is already explained by Lakshmipathi Sir, where tax is determined based on through corresponding reference docs.

Thanks, JP

jpfriends079
Active Contributor
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Nalini Nayak

Is Tax jurisdiction is the base to determine, whether you are liable to pay tax or not? Or for US, this to determine the authority to which tax need to be paid?

Further, I wish your content is not copied from http://srilogix.com/casesWhitepapers/Tax%20Rate%20Determination.pdf, which is relevant to tax calculation with 3rd party bolt-on for SAP

Regards, JP

Former Member
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Dear Jyoti Sir,

I am very new in SAP. Also i dont have any experience in SAP SD. So whenever i find any confusion I simply ask and clear my doubts. I marked the answer helpful as they really helped me to clear my doubts. There is nothing wrong in it. However If you feel that you dont want to response my questions simply ignore it Sir, but you dont not have the rights to say someone " mindless" or using the word " spoon feeding". Thanks

Message was edited by: Joy Chakraborty

Message was edited by: Joy Chakraborty

jpfriends079
Active Contributor
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Former Member

I understand words used by me offended you. Apologies for that.

Further, there is no harm in appreciating someone effort, if that helped you. Please have some courtesy in explaining your understanding, which would not only help you, but others also, who might have similar query.

Learning is not over, till that is applied or shared.

Thanks.

Best Wishes, JP

Former Member
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Sure Sir and I know experience people like you will help me and others to clear their doubts. This is a great platform to understand things in a better way. I will be asking more questions whenever i will find any doubts. Also the thread is closed as I understood the points.Thanks

Lakshmipathi
Active Contributor
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There is nothing wrong in it

To decide whether a thread's content is wrong or right, SCN have nominated Moderators and whatever they decide, you have to go by that.  Even if there is no mistake on your part, it is very important the way how you communicate here.  Since this is a global forum, please follow the forum rules.

G. Lakshmipathi