VK11 Condition types for taxes

[Former Member]

Hey, I'm attaching the print screen of Vk11 for taxes. I don't understand what is the use of taxcode(highlighted) on the image. I have seen F1, but it doesn't make any sense to me.... I'm putting the tax rate % in the amount field... What is the use of Region? Is it the region of a customer? Any help is appreciated.

Thanks

[ajitsingh6]

Hi,

Please find below relevance of each field mentioned in ur screen shot,

1. Region is of Ship to party region code mention in customer master record.

2. Tax code is not for % rate but to determine G.L. against which system will post tax account.

3. Tax rate is the % rate which applied in each case.

Regards,

Ajit K Singh

[Former Member]

Hi Sai,

Tax codes are basically used to calculate the taxes (VAT / CST). If the product is sold with the state then VAT will be charges else CST will be charged. Region of the delivery plant and Region filed will decide what kind of tax to be charged to the customer.

For Ex:

1. country IN,  Region of Del plant 01, Region of the customer  01, Cust tax class 1, Mat tax clas 1 then VAT will be charged

2. country IN,  Region of Del plant 01, Region of the customer  11, Cust tax class 1, Mat tax clas 1 then CST will be charged

Thanks

VSA

[Former Member]

Aasish, Thanks for the reply. In the Taxes on Purchases/Sales, I have configured 2 tax codes (O1 & O2). O1 has taxes Excise duty, Cess & VAT, whereas O2 has Excise, Cess & CST).

Now configuring condition type for tax VAT using VK11 using key combination Plan/Region/Delivery PLant REgion/ etc, I have entered the tax code as O1.

What is Tax code acting as here? I know it is not retrieving any tax rates mentioned in Taxes on Sales/Purhases section as I have maintained same Account Keys in both the areas but condition types are different....  

If I am defining condition type for Excise, what is the tax code I have mention here.. Will it be O1 or O2?

Thanks

[naveen_kaluti]

Hello Sai,

The tax code with which you maintain the condition records will be acting in the sales document.

If you maintain the condition records for condition type VAT for a particular tax code, then the tax rate mentioned in FTXP and your condition records should match if not system will throw you a error and wont allow you to save the records.

Basically Tax code are provided in condition records to maintain sync between the tax rate configured in FI and taxes charged in SD.

Hope this helps.

Thanks & Regards

Naveen K.

[Former Member]

Naveen, thanks for the reply. I have defined a different Condition Type for VAT in ftxp but I'm using the same AcctKey(I guess AcctKey is mapping condition type to the G/L Account).

When I'm entering the Tax code created in ftxp here it is throwing a warning(not exactly warning)

which is below.

Tax ID O1 cannot be checked (there are several/no tax records)

[former_member186385]

Hi,

Tax codes are basically used to differentiate between tax rates within one country

for example, India can have two tax rates for Sales/Purchase which are as 7% and 1 %. This can be differentiated using tax code

Further they are used to determine tax account

while maintaining Condition records in VK11, you can add the tax code from which corresponding tax rate is determined

In transaction code FTXP you will assign country key , tax code and rate