Customer tax code assignment

[Former Member]

Hi all

How customer is assigned to tax code

how tax code will be picked in sales order

regards

[Former Member]

Hello,

Normally the tax condition will be assigned against the country. Then we maintain the tax relevency of master records for both customer master and material master (taxable, non-taxable). (SPRO --> Basic Functions --> Taxes --> Tax relevency of master records).

The tax code will be setup by the transaction FTXP (this is done by the finance team), give the country, tax code and set it as oupt put tax.

Go to Vk11, maintian MWST, select the key combination (Depcountry, dest county, tax code) , and maintian the details and the tax code.

Prase

[Lakshmipathi]

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

SAP defaults the ship-from jurisdiction maintained on the plant as the point-of-order acceptance, and defaults the ship-to jurisdiction maintained on the customer as the point-of-order origin.

thanks

G. Lakshmipathi

[Former Member]

Hi,

Tax Code is created Via FTXP and and we link this tax Code with transaction key ie MWS for output tax. And also maintain the tax percentage for it in FTXP itself.(Also the G/L a/c)

In VK11, we maintain tax condition records, by entering the "Customer Tax Classification" ex. 1 and Material Tax Classification" as wll as the the required Tax code (with desired %).

Hence the desired tax percentage gets determined in the sales order pricing tab.

Therefore Tax Code is determined by the "Tax Classification" maintained in the Customer Master and "Tax classification" maintained in the Material Master.

But all this is done in VK11

Regards,

Sreenivas

[former_member184555]

Hi

The customer tax code is assigned in the customer master and we have to create records for different combinations of the Customer tax code and Material Tax code and the corresponding tax rate. That tax rate will be determined in the sales order.

Thanks,

Ravi