Query on Tax

[Former Member]

Hi all,

Tax rates and codes are maintained in FI in FTXP and the Tax procedure is assigned to Country.

My question is where is the link between SD and FI for tax determination? How the system uses the tax rates maintained in FI?

Regards,

Ajit

[Lakshmipathi]

Dear Ajit

Several parameters influence the tax amounts and tax rates determination. The most important ones include:

=> Delivering country (origin)

=> Tax class of the ship-to partner

=> Tax class of the material being shipped

=> Tax calculation date

=> Jurisdiction code from ship-to-party (customer)

=> Jurisdiction code from ship-from address (plant)

=> Point-of-order acceptance

=> Point-of-order origin

In VK11 / UTXJ, you are assigning the tax code where there would be different combinations.

SD uses the country, customer tax indicator, and material tax indicator to read the tax condition records. During pricing execution in sales order processing, the system exits the normal pricing upon recognizing a condition type 1 (delivered UTXJ). The tax condition records are then read using the country and tax code maintained in the pricing condition record.

thanks

G. Lakshmipathi