TAXES

[Former Member]

hi gurus,

can get a breif structure of how United States Taxation is....if anyone is wrking on a US project please lemme knw....wht are the taxes they have and wht is the nessecary config's for them means any thing like cin,

thanks in advance

[Lakshmipathi]

Hi Kiran

The United States consists of more than 55,000 jurisdictions. A jurisdiction is the taxation authority that imposes the tax. Each jurisdiction is identified by a tax jurisdiction code. This code provides the location for the transaction to be taxed.

The tax jurisdiction code is a key, which together with the tax code and other parameters, determines the tax amount and the way in which payment of the entire tax amount is divided between different tax authorities.

The R/3 System can handle up to four jurisdiction levels for calculation procedure TAXUSJ and six jurisdiction levels for calculation procedure TAXUSX. Each jurisdiction level has its own jurisdiction code.

<b>Use</b>

When posting a document or calculating prices, you use jurisdiction codes in combination with tax codes to calculate tax amounts. Moreover, the jurisdiction code determines how the tax amount is divided among the different tax authorities.

If you use the tax calculation method with jurisdictions, you have two options to calculate taxes:

1. Using calculation procedure TAXUSJ, you manually enter the required jurisdiction codes and enter the corresponding tax percentages.

2. Using calculation procedure TAXUSX, you calculate taxes in an external system which contains jurisdiction codes and their corresponding percentages.

<b>Structure</b>

A jurisdiction structure is a freely definable 15 character field with up to four levels. A level corresponds to a tax authority such as state, country or local government.

For example, a jurisdiction code using the TAXUSJ structure has nine characters with the first two denoting the state, the next three denoting the county or parish within the state and the last four denoting the city.

• Jurisdiction of the state of Pennsylvania - PA0000000

• Jurisdiction of the county of Allegheny - PA0010000

• Jurisdiction of the city of Pittsburgh - PA0010100

<b>Integration</b>

Jurisdiction codes are defined for key master records. For sales transactions, the jurisdiction code is determined based on indicators on the customer and material. For purchasing transactions, the jurisdiction code is determined based on indicators on the material for simple tax scenarios.

Thanks

G. Lakshmipathi

[Former Member]

thank you lakshmi that gives a clear picture another thing i wld like to knw which wld complete this ..

sample cond recrds maintaines for taxes...

thanks in advance