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Change Tax Classification in Sales Order

Former Member
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Hi all,

I have a question about tax classification in sales order.

I know that taxable or non taxable is determined by a variety of key (by material, order type, departing country & destination country, etc).

I use Domestic Taxes as a key to determine taxable or nontaxable. To do that, I need to set up tax classification in customer master and material master, right?

Based on that combination, I can determine if it becomes taxable or nontaxable and if so by how many percentage.

OK.

Here is my scenario:

The customer and material I use to create sales order is set as taxable. So, when I create an sales order, the tax and its % is automatically presented in conditions.

But how do I do if I want to make only this sales order be nontaxable?

I changed Tax classification from '1' taxable to '0' nontaxable in Billing Document Tab at Item level, but tax is still there in Condition Tab.

I thought taxable or nontaxable can be changed by this way. Am I missing some procedure?

Regards,

Screen Field:VBAP-TAXM1

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Answers (2)

Answers (2)

Former Member
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Former Member
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Hi,

When you set the tax condition to your country and set the tax rate in VK11 based on the customer tax classification and material tax classification, it should pickup in the document.

How can it posssible to have tax for one document and no tax for the other. Tax is uniform, and it will be applicabe to all customers (certain exceptions also there). In any case the customer is not taxable ot material is not taxable, maintain the customer / material tax classification as '0' and don't maintain any condition rate for that.

Prase

Former Member
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Prasanth

Thank you for your reply.

I did the test again, and I could set one Sales Order as nontaxable by changing tax classification at sales order item level.

It seems by changing that field, it changes tax classification of material. So the result is that users can change the tax classification per order!