Taxes in Customer Master

[Former Member]

Hello Experts,

We have plant defined in country Malaysia, plant defination have country as "MY" - Malaysia.

This plant is assigned to US sales area due to business requriement.Now we Malaysia Tax populating in Customer Master unders sales area tab/billing documents for each customer assigned to US sales area.

We do not want MY tax to appear in customer master for US country, any suggestion how to achieve this?

Thank you

[Former Member · Accepted solution]

Hi,

First define tax classification for each country in OVK1.

Then define customer tax classification (country US & MY) in OVK3 and assign the same in customer master. Tax Classification for US as 1 or taxable and 0 or not taxable for Malaysia depending on where your company code is located.

Similarly, you define & assign whether your material is taxable or not.

Where is your company located in US or MY? If it is export sale from Malaysia then, customer/material will not attract local taxes etc. So you need only to assign Malaysia tax as 0.

[jpfriends079]

Deven

There is business scenario known Plant Abroad. Which assist you in handling this particular business scenario.

For details on this business scenario, you can refer following SAP Notes for your understanding/reference:

- Note 51361 - Plants abroad

- Note 63103 - Plants abroad (tax procedure)

Thanks, JP

[former_member184080]

Hi Deven,

I am agreeing both with JP and Kavuri. Frankly, I never seen any countries other than EU countries using plant abroad scenario.

Find SAP help on plant abroad.

http://help.sap.com/saphelp_erp60_sp/helpdata/en/e5/077f984acd11d182b90000e829fbfe/content.htm

http://help.sap.com/saphelp_45b/helpdata/en/34/60b19dae724effe10000009b38f91f/content.htm

http://scn.sap.com/thread/879802

If you still think plant abroad can be apt for your client, you can do the settings accordingly.

If not, I feel Kavuri's suggestion will do good with minimum changes in SAP.

Regards,Sai Krishna.

[neeraj_lal]

Hi Deven,

As JP suggested, your scenario looks like Plant abroad scenario. Check the note which JP suggested.

Regards

Neeraj

[Former Member]

Thank you all experts for your valuable suggestion.

Our business decided to maintian 0 - Not tax relevance in Customer master for MY tax code.

They dont want any changes to tax procedure.

Thank you.

[former_member184080]

Good to hear.

Regards, Sai Krishna.

[dattatreya1988]

Hi Deven,

Tax is determined based on Destination country of ship-to + Departure of shipping point + Tax classification of customer + Tax classification of material.

So if your ship-to is from US, Shipping point is located in Malaysia & assuming both tax classification of customer & material is taxable (1), Plese check in configuration what value is maintained for this combination. This would give you an idea. Else you can maintain these configuration in syatem so that tax is correctly determined.

Thanks,

Dattatreya N R