Urgent : SD Tax Determination Problem (TAXINN-ECC6.0)

[Former Member]

Dear SD Community,

Iam working in mySAP ECC6.0 version SD module. Our Tax procedure is TAXINN. Our client has diff. plants, out of which some are tax exempted, some are on tax deferment 7 some are fully taxable.

I have a peculiar problem in SD Tax determination, where system is searching only JCST Condition Tax category in Billing Tab of Sales Area Data in Customer Master Data & Material Master Data for a VAT Customer. Is it a standard functionality of SAP.

Customer Master Data Material Master Data

Sales Area Data (Billing Tab) Sale Org 1.

JCST-3(Cust CST with form"C") JCST-2(Mat CST Full Rate1)

JVAT-2(Cust VAT Taxable) JVAT-1(Mat VAT Full Rate1)

When I raise a sales order, for a VAT Customer (within state) with Region 33, Region of Delivering Plant 33, system should pick the the JVAT Tax classification of Cust Master & Mat. Master i.e. 2 / 1 combination for which I have a condition record saved in JVAT Cond. Type in VK12, instead it is always searching the 1st one, i.e. JCST with 3/2 combn. which a CST record.

For CST Customer (outside state) systems picks up the right record as it picks from the 1st one.

System is always picking the record from the 1st tax category in Cust. Master & Mat. Master. It is not searching the JVAT condn. which is below JCST. In OVK1, the tax sequence is maintained in the following manner : 1-JCST, 2-JVAT.

System is not picking the respective taxes according to region of ship to party. The key combn. to search tax records is

Country/Plant/ Region of Dlv. Plant/Region of Ship to Party/ Tax Classfn1 of Cust/ Tax classfn of Material

There are different Tax classifications for Cust. CST & VAT & Mat. CST & VAT. JCST & JVAT are the condition types, all the standard tax determination configurations has been used & checked thoroughly. Pricing Procedures JCST & JVAT assigned, account key mainatined in OB40 with respective tax codes etc. There is absolutely no problem in that as CST is coming.

Plz guide me where iam going wrong....this issue is critical, needs to be resolved urgently. If possible plz send me any link or TAXINN - ECC6.0 config docs. for SD Tax determination or SAP Notes to fix this problem. My email id- subratpandasap@gmail.com, Cell-09981923902.

Regards

Subrat

[Former Member · Accepted solution]

Hi,

You can maintain the CST & VAT as following:

CST 0=Nil, 1=3% agnst form C, 2=12.5%(or whtever %age applicable for full tax wtht form)

VAT 0=Nil, 1=4%, 2=12.5% (%age can vary as applicable)

Maintain all the tax conditions as 1 in material master & customer master. Now maintain tax rate thru tcode VK11 with the key combination as you have mentioned. Give the region of plant & customer region as applicable & tax classification as 1 for both cust & mat. So whenever system will execute the price in sales documents then it'll check the region of plant & region of customer 7 will accordingly take the rate.

hope it solves your problem, pls do revert back whether your problem solved or not.

Rgds,

Antima

[Former Member · Accepted solution]

Hi Antima,

Thnx for ur reply.

But I dont understand really the logic behind that maintaining 1/1 or 2/2 in the masters. Why cant we maintain 1/0 or 2/1 or 3/1 or 3/2, if we have maintained the records against JCST or JVAT. Bcos system should classify JCST or JVAT on the basis of Region of Del. Plant & Region of Ship to Party. If it is 33(Chattisgarh) & 33(Chattisgarh) it is a VAT Customer i.e is should go to JVAT Tax category & If it is 33(Chattisgarh) & 13(Maharashtra) it is a CST Cust. i.e. it should go to JCST Tax category.

I know this solution, what u r suggesting, but is it logical, thing i want to make clear why systems picks the records from the 1st tax category JCST maintained in Cust. & Mat. Master only, why it doesnt search the 2nd tax category JVAT.

Regards

Subrat

[Former Member · Accepted solution]

Hi Subrat

Coming to specifics, the Access sequence I used for CST was: Country/Plant/Region/Tax Classification 1 Customer/Tax Classification Material. For LST (VAT in my case) it was: Country/Plant/Region/Tax Classification Material/Tax Classification 2 Customer. In the Material master, the tax Classification was 1 (Full Tax) for both CST and VAT.

In my case for VAT, my Region of Delivery Plant and Region (to which the Customer belongs) were the same while for CST, the Region of Delivery Plant and the Region (to which the Customer belonged) were different. My settings were 1-0, in case of CST and 0-1 for VAT where 0 stood for CST or VAT being exempt in respective cases

Hope you got the logic now.

Regards

Ramana ND

[Former Member · Accepted solution]

Hi Ramanna,

Sorry for the late reply...U r solution for the Tax classification 2 for Customer has partly solved the problem for Customer Tax. But for different Tax classification of Material, i.e. Material Tax, it is not working.

Anyway, thnx for ur kindly help...

Regards

Subrat

[Former Member · Accepted solution]

Hi

You need to apply the same logic as Customer Tax Classification 1 and 2 in the case of Materials, too. The Sales Tax (whether CST or VAT/LST) is dependent on your Customer, more specifically, the Ship-to-Party's location and Material's taxability has nothing to do with the Sales Tax calculations. Material is more relevant for Excise Duty.

However, why do you need a different configuration for Material? What exactly is your requirement?

Regards

Ramana ND

[Former Member]

Hi Subrat,

Please try to maintain the customer and material tax classification indicator for JCST and JVAT as same.

i.e. If 1- is for 3% against C form for JCST then

1- should be for 3% against C form for JVST also.

What I mean to say is the indicator combination for JCST and JVAT should be same.

Try out this and let me know. It should solve your problem as I have even faced the same problem.

Karthik.

[Former Member]

Hi Karthik,

Thnx for ur reply.

But I dont understand really the logic behind that maintaining 1/1 or 2/2 in the masters. Why cant we maintain 1/0 or 2/1 or 3/1 or 3/2, if we have maintained the records against JCST or JVAT. Bcos system should classify JCST or JVAT on the basis of Region of Del. Plant & Region of Ship to Party. If it is 33(Chattisgarh) & 33(Chattisgarh) it is a VAT Customer i.e is should go to JVAT Tax category & If it is 33(Chattisgarh) & 13(Maharashtra) it is a CST Cust. i.e. it should go to JCST Tax category.

I know this solution, what u r suggesting, but is it logical, thing i want to make clear why systems picks the records from the 1st tax category JCST maintained in Cust. & Mat. Master only, why it doesnt search the 2nd tax category JVAT.

Regards

Subrat

[Former Member]

Hi Subrat

Exactly the same issue I faced 3 months ago that gave me sleepless nights until I found the solution staring at me. The issue has been solved but not with the standard access sequence for JCST and JLST (VAT in my case). Let me reach my Office and I will give you the exact Access Sequences I used to figure this out.

As for the logic of the Sales Tax calculation, I presume in your Pricing Procedure, JCST comes first and JLST later. Now what is happening is that the System is able to find the Access Sequence for JCST ( 0 or 1 in your case) but nowhere you are telling the System how to access the JLST if that exists. This is where you have to use Customer Classification 2 for the System to detect that JLST also exists. So basically, you are telling the System that your Combination of Sales Tax (both CST and VAT) is 1 and 0 for CST and 0 and 1 for LST (0 is not applicable while 1 is applicable). Both are mutually exclusive and no Customer will be charged both CST and LST at the same time.

Will revert with the exact access sequence I used, very shortly.

Regards

Ramana ND