Taxation application should be based on SP but tax rate should be from SH

[Former Member]

Hi Gurus,

I have a typical scenario, where in ,when a sales order is created for the customer ,  based on Sold to Party Tax classification , tax should be applied for that order .

If the Tax classification of Sold to party  says for that specific tax category it is 1 then calculate based on the tax rate which is mapped for the jurisdiction code of the ship to party.

If the Tax classification of Sold to party says  for that specific  tax category as 0 then do not calculate tax for that customer .

To achieve this .

I did the set up in SPRO --> Sales and Distribution --> Basic functions--> Taxes--> Maintain sales tax identification number determination

In the above mentioned place , I maintained for my sales org US , value as 'A' , on the assumption that it will recognize the entire start up of tax determination based on Sold to party , but for my surprise it is not working as I expected .

Have I missed out any set up other than the above , please suggest me.

[former_member183879 · Accepted solution]

Hi Anand,

You have done only one part.

1. This part you have done is OK.

2. Once that is done for the tax condition types, you should also mention the applicable tax categories. This is done at OVK1.

3. Maintain the sold to party tax classification tab with the correct tax classification.

4. You should have a condition table included in the access sequence of the condition type representing this particular tax. This condition table should contain the fields Customer Tax Classification / Jurisdiction Code

Source of first field should be from Sold to Party and second field from Ship to party master.

5. Now maintain the condition record for the condition type using this condition table.

Once this entire set up is done, create a sales order with the right data. It should work fine.

[Former Member · Accepted solution]

Hi Navneetha,

How do you i maintain those fields , which table i should add in the access sequence .

I have attached access sequence TAXJ in the tax condition JR1 , hence I need to change

access sequence TAXJ .

Initially i had one entry in the access seqeuence TAXJ which as 53  it had three fields country, taxcode , tax jurisdiction  , ALAND, MWSKZ and TXJCD.

My doubt here is which table like 53 mentioned above should i add so that i get classification of tax from sold to party and jurisdiction code from ship to party.

Please let me know.

[Shiva_Ram · Accepted solution]

Use SAP OSS note  21734 - Determining sales tax (VAT) from any partner as guidelines  for your requirement.

Regards,

[former_member183879 · Accepted solution]

Hi

Either you need to find the relevant table for the right combination or create. I dont know the table number right away. That should be simple anyway.