US Taxes

[Former Member]

Hi everyone,

We are using standard SAP functionality for determining the taxes in US as our products are taxable only in 5 states we decided not to have an external system do the taxes.

However, one scenario is:

2 customers, one in NJ and the other in FL - both customers are taxable hence have 3 (city, county and state) defined in the customer master tax fields

For the customer in NJ, one particular product is non taxable but the same product is taxable for the customer in FL - since the product itself is kept taxable, we define it such in the material master

How do we avoid applying the taxes for this non taxable material to the NJ customer? The other products to him are taxable. How will the access sequence for taxes be set up? Including the materials in it is not a solution as maintenance will be very difficult.

Many thanks.

[Former Member]

Let's do it this way

1) create one new mat. tax cl. (for example Z - taxability in cond. record) and assign the material to this mat. tax. cl.

2) have one more tax condition table which should only have exceptional records. say Customer/Cust tax cl./Mat tax cl. and have this as the first entry in your access sequence with exclusive tick switched on.

3) now maintain a record for NJ customer in this table as

NJ customer no. - (Cust tax cl.) - Z = 0%

4) now SAP will always read this record first and whenever it founds your NJ customer with this record, it will have 0% tax for it. For other customers it won't find this record and will charge tax for them.

Apply it and let me know how it looks....

[Lakshmipathi]

Hi Yogesh

In Customer Master XD01, maintain "<b>0 - Tax exempt</b>" for the fields "Taxes" which will be in "Sales Area - Billing Document" for NJ customer.

Thanks

G. Lakshmipathi

[Former Member]

Hi Lakshmi,

Sorry for interrupting but if yogesh maintains a customer master classificaiton as 0, his NJ customer will be totally tax free for all states, which he don't want to do....

He only want his NJ customer to be non-taxable for a particular material, otherwise taxable for all other material and states.

Am i correct Yogesh...

Thanks

Kapil Sharma

[Former Member]

Yes, Kapil, only the NJ one is non taxable for this material. I will try your suggestion and let you know. Thanks a lot.