Material Tax Classification in Billing Tab in Sales Order Issue

[Former Member]

Hello Gurus,

I am facing an issue with the Tax Classification for the Material in the Billing Document Tab in Sales Order at item level.

When I mention a particular plant I get only TAXM1 field and it is populated with the value 1. When I change the plant I see that TAXM1 , TAXM2, TAXM3 field is appearing and all is populated with the correct values.

I have maintained the Tax Classification against the customer and material master respectively.

Could I pl. know what cause this discrepancy?

[jpfriends079 · Accepted solution]

There is no discrepancy, this is standard.

This behaviour is controlled through country of plant. For this:

1st - Check the Country of the delivering plant. Say that is MX - Mexico

2nd - Refer Tax Categories by Country configuration in TCode OVK1. Where for country MX - Mexico, you will have more than one Tax Categories.

In your case, for the 2nd Screenshot's country, there will be 3 tax categories and for the 1st one, it will be one.

Thanks,

JP

[Former Member · Accepted solution]

Thanks Jyoti for your inputs.

It is now clear as to why the difference is appearing.

I would require some suggestion on the below:-

When the customer creates the return order they want to be able to reverse any of the Taxes that were applicable on the initial sales order. The issue is that the return order would be created against a different plant.

How would it be possible to reverse the Tax in this scenario.

[Lakshmipathi · Accepted solution]

Though logically this is wrong (debiting tax from one plant and crediting to another plant) from statutory point of view, you can try with USEREXIT_MOVE_FIELD_TO_VBAP in the program MV45AFZZ where you need to validate based on your requirement.  Of course, you also need to validate that if the returns is beyond six months from the billing date, then you should not consider tax which I believe, is the pervailing statutory rule.

G. Lakshmipathi

[Former Member · Accepted solution]

Thanks Lakshmipathi..

What we have done is to write a routine in VOFM and populate the KOMP structure with the respective variable.