Multiple Taxes in one Customer Master Record and Condition Record Missing

[former_member226334]

Respected Experts,

I have requirement from my client that they have a customer with multiple division. Now they want multiple tax rates on every division. After R&D i have found that i come to solution that every division should have different pricing procedure with tax condition. I have do so, and assign every pricing procedure to it.

Now i have maintain the customer with tax rate,

And also have condition record

But condition record for tax is not picking up in sales order.

Kindly guide me to resolve this problem. Thanks in advance.

Regards,

Adnan

[Jelena · Accepted solution]

I'm having hard time imagining in what country and in what business scenario this could be a valid requirement. Either the divisions are not used as intended or the taxation principles are misunderstood here.

Usually it's the material's attributes and ship-to (customer) / ship-from (Plant or Sales Org) location that drives the tax rate determination. I just don't see how division comes into play here and feel you're on a wrong track completely.

What exactly is the business scenario here? Please provide more specific example.

[former_member226334 · Accepted solution]

Respected Mam,

I am working for Textile industry and they have one customer only and it is dealing with multiple divisions and different tax rates for different divisions. I have extend all divisions at one customer now when i change one rate at one division system change all rates on all divisions. So client want different tax rates for different divisions at same time at customer master. So for that i created all that scenario.

After being guidance should i forget all scenario and create different ship to parties for different divisions?

Regards,

Adnan

[JL23 · Accepted solution]

Maybe you could explain what divisions are used for in your design and what they have to do with taxes, that is unclear point.

Post an example:

e.g. Bread 7% tax, eye liner 19% , but these are product specific taxes, what kind of taxes are division specific?

[former_member226334 · Accepted solution]

Hi Juergen,

They have following divisions

01 Woven

02 Denim

03 Non - Denim

04 Ethnic Wear

05 Footwear

I have extended one customer with these divisions and tax rates are as follow.

1	Zero Tax
2	Local Sales 5%
3	Fabric Sales 3%
4	Finished Goods 17%

Now at the sales order i want different sales tax rates at same time for one division. E.G. I am creating sales order with woven division material.

ABC material with Woven Division

XYZ material with Woven Division

Requirement is that When i create sale order ABC material should be picked with 17% tax and same sales order other line item with XYZ material should be come at 5% tax. Is it possible if yes how can i meet this requirement.

Best Regards,

Adnan

[JL23 · Accepted solution]

For which country is this? Do you have a link to the tax law?

[jpfriends079 · Accepted solution]

Adnan Tahir wrote:

Requirement is that When i create sale order ABC material should be picked with 17% tax and same sales order other line item with XYZ material should be come at 5% tax. Is it possible if yes how can i meet this requirement.

Yes, very much possible. Tax classification will critical role here.

I assume:

1. your sales tax in question tax condition type is ZSTX and that is assigned to your country PK.

2. Tax Classification for Customer are

1 - Zero Tax

2 - Local Sales 5%

3 - Fabric Sales 3%

4 - Finished Goods 17%

3. Tax Classification for Material are

1 - Woven

2 - Denim

3 - Non - Denim

4 - Ethnic Wear

5 - Footwear

ax Classification for Customer

So, your tax condition type's condition record can be:

Tax Condition Type	Tax Classification for Customer	Tax Classification for Material	Tax Rate (in %)	Tax Code (You can use same tax code provided your Sales Tax related GL A/c is same.)
ZSTX	2 - Local Sales 5%	1 - Woven	5%	V1
ZSTX	4 - Finished Goods 17%	1 - Woven	17%	V1

Also, refer the following link to see how you can have different Tax GL account based on tax code - Plant-wise Different Tax General Ledger Accounts - ERP Operations - SCN Wiki

Thanks, JP

[JL23 · Accepted solution]

What you have in your example is material based tax (different tax for ABC and XYZ in the same division), what you originally wanted (so we understood it) was

Division based tax, the example should then have been like this:

Material ABC in  01 Woven   = 7%

Material ABC in   02 Denim     = 9%

Material ABC in   03 Non - Denim = 14%

Material ABC in  04 Ethnic Wear = 5%

Material ABC in  05 Footwear = 20%

Please clarify.

[former_member226334 · Accepted solution]

Hi Jurgen,

Thanks for your time. Client want in that way

in sale order material ABC 01 Woven = 7% in line item 1

in sale order material XYZ 01  Woven = 15 % in line item 2 etc.

is it possible in standard way or i have to edit tax condition manual?

Regards,

Adnan

[JL23 · Accepted solution]

of course it is possible since it is standard material driven and has nothing to do with the division

[former_member226334 · Accepted solution]

Dear Jurgen,

How can i achieve this kindly tell me.

Regards,

Adnan

[Jelena · Accepted solution]

Adnan, do you seriously still not understand the suggested solution? JP has already explained the tax classification above in detail. I'm an ABAPer and even I'm able to understand this. It's a standard functionality that is described in documentation and should've been covered in the SD training you should've received before starting this job.

As Jurgen correctly noted, this is based on the material and has nothing to do with the divisions. E.g. the same material can't be "denim" and "woven" at the same time (for taxation purposes). It's just a simple logic.

Kindly use the information already provided to do additional research and apply it to your requirement.

[former_member226334 · Accepted solution]

Respected JP Sir,

I have done all this according to this given scenario but condition record is still not picking up at sale order level.

Best Regards,

Adnan

[former_member226334 · Accepted solution]

Thanks Jelena for your response, as i know that the division is not related to my current scenario, this tax classification will be executed on the basis of material or customer. but i have done all my settings mentioned above for materials and specify the tax classification in material master as well but still the system is not picking the condition record for sales tax in sales. You are requested to kindly respond.

Thanks in anticipation.

[JL23 · Accepted solution]

The analysis clearly tells you that a requirement is not fulfilled . The requirement is a small ABAP routine that checks on certain fields. You can get there by calling transaction VOFM, then from menu Requirments > Price determination, then double click the 007 to see the coding.

[jpfriends079 · Accepted solution]

Hi Adnan,

It seems like you copied Access sequence MSWT to create a new access sequence ZGST. Therefore, default requirement routines got copied along with it.

If routine logic doesn't apply to your business need, then you have to remove those routine marked against those condition table.

Moreover, please make sure respective tax classification data is flowing automatically from respective master data to the corresponding fields in Sales Order Header and Items.

Thanks, JP

[former_member226334 · Accepted solution]

Respected JP and Juergen Sir,

Thanks for your priceless time and support. Now i have much better understanding regarding different tax rates determination regarding multiple material with one division maintain.I have maintained condition record according to given guidance and tax record is coming accordingly.

Sir at the end,

What is purpose of routines 7 and 8.

Thanks & Regards,

Adnan

[JL23 · Accepted solution]

A requirement is a bit of ABAP which controls  that this requirement is fulfilled before the condition is allowed, 7 controls that this condition is only considered in case of local business, where sender and receiver is in the same country.

8 is for export business, it checks whether sender and receiver are in different countries before a condition with such requirement can be used.

[Jelena]

There is a good document on the VOFM routines floating around on the interwebs. If you just google "VOFM routines" you'll find it. If you have any questions about a particular routine then any ABAPer can explain what the code does. Although the standard routines usually have self-explanatory names. They're also very short, as was noted, so even not an ABAPer can just look at the code and likely understand what it means.

Going forward, when you post the questions just try to be more specific. Repeatedly asking "how do I do this?" does not project the same image as "I have tried <this> and encountered <this error / issue>", etc.

Thanks for closing the thread!

[jpfriends079]

Hi Adnan,

I even agree with Mr. Bilgin's comment. Moreover, I don't like to go into the design of this process, assuming this your customer requirement. And this approach validated and approved by the customer's Tax Department.

PS: If in case you are in POC state of this. Then I believe me, there is too much of scope to improve your current design as it reflects in the screenshot shared by you.

Now, concentrating only on the issue related to condition record determination. First of all, please refer the following discussion:

- tax classification issue | SCN

After going through the above link, you will be able to understand that the condition table used for condition type ZGSW is not correct. If I assume Tax Condition Type ZGSW is on 5th in the sequence of country - tax condition type assignment, then your condition table used in the access sequence for tax assignment should have:

- field TAXK5 for Tax Classification for Customer and

- field TAXM5 for Tax Classification for Material.

Thanks, JP

[former_member226334]

Hi Kıvanç Bilgin and Jyoti Prakash Sir,

I am using one access sequence for all condition types which is MWST. Should i maintain different access sequence for all condition types? And following is tax category for my customer.

Thanks,

Adnan

[sez41]

Definitely. Tax classifications which are assigned to your condition types should match the tax classifications in your accesses.

[jpfriends079]

No. I have already explained you that. And std access sequence will not help you.

Thanks, JP

[sez41]

Hi Adnan. Although taxes in customer master data are entered in sales area level, they are not sales area dependant, and thus, are not dependant on division. Customer tax liability is stored on country level, and country information is picked up from the company code's country to which your sales organization has been assigned to. I think the best practice to solve your requirement should be choosing an extra field in customer master sales area level (table KNVV, maybe division??), customize its content depending on your requirement, create a tax condition table with an additional key field on top of tax classifications (your new field) and maintain condition records properly.