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how are US tax condition types XR1 to XR6 calculated

Former Member
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i searched few forums to understand the ways of US taxes getting claculated particularly on condition types XR1 to XR6, is the value available in SAP system or is the percentage value maintained in the taxware or vertex system?

if in SAP where is this maintained, i could see the same input & output tax codes assigned in OBCL settings for many states in US, so i am not able to relate this in FTXP, as different states provide different calculation.

if it is maintained through external system, is there way we can check the values or see in the screen?, how is this link of checking the external system enabled, is it through 301 cal type & its associated function module,

will there be a chance to change this value from the user end or do we need to seek Taxware or Vertex assistance here.

sorry on too many questions.

just got confused with the way it works

Regards

Ilango

Accepted Solutions (1)

Accepted Solutions (1)

jpfriends079
Active Contributor

Hi Ilango,

Check my responses to your respective questions:


i searched few forums to understand the ways of US taxes getting claculated particularly on condition types XR1 to XR6, is the value available in SAP system or is the percentage value maintained in the taxware or vertex system?

In SAP, only Condition Type XR1 to XR6 are only condition which is responsible for computation of tax in US & Canada. Where, even condition types UTXD & UTXE are equally essential to this. These condition types used for external tax calculation.


if in SAP where is this maintained, i could see the same input & output tax codes assigned in OBCL settings for many states in US, so i am not able to relate this in FTXP, as different states provide different calculation.

Well, I don't think there much from SD side to explorer here. As Tax procedure hardly have any role to play in SD business process for tax rate determination. But, that is very significant from GL Account determination for respective Tax Transaction in SD.


Refer my posts on

Whereas, configuration for Non-Taxable transaction as maintained in TCode OBCL, generally comes in picture when Tax Jurisdiction is not maintained in respective Ship-to master. Based on that configuration system will determine Tax Jurisdiction for those Ship-to.

% are maintained in FV11, not in FTXP.


if it is maintained through external system, is there way we can check the values or see in the screen?, how is this link of checking the external system enabled, is it through 301 cal type & its associated function module,

301 is not the only Routine associated. As like UTXD & UTXE there respective routines 500(collect tax input - export to IVP) & 501(get tax output data - import from IVP) are equally important with others 301 to 306(Set tax values and percentage into condition structure and fill tax base amount based on FM  GET_TAX_RESULTS_FOR_301_306)

Refer SCN Wiki Tax jurisdiction - ERP SD - SCN Wiki


will there be a chance to change this value from the user end or do we need to seek Taxware or Vertex assistance here.

Hope you are aware, these tax IVPs are tool that is used to calculate taxes for the US tax rules.Yes, you might need to ask respective Tax IVP.


In Taxware, it provides the tax jurisdictions codes for master data addresses in SAP. Based on combination of both tax jurisdictions, the Taxware product code and dates, Taxware returns rates and amounts of tax and which jurisdictions get the tax.
















Hope that helps you. If you still have any specific question, do revert back.

Thanks, JP

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