Tax code in Invoice verification

Question

Hi
I have created a PO where there is no input tax. The GR has been done. When posting the invoive it is asking for the tax code.
Why ?
I have mantained a tax code V0 for the country .
Then I am getting the following message.
Tax code V0 country KE does not exist in procedure TAXKE
How to rectify this?
Regards
Soumen

Answer 1

Transaction:  FTXP
This area gives you a step by step explanation on "how to create a tax code in SAP". Later on these tax codes must be used in the creation of condition tables such as for MWST.
Go to transaction code FTXP and select the country for which you need to create a tax code.  This country is automatically linked to the Tax Procedure which has been set up in the menu path
IMG - Financial accounting - Financial accounting global settings - tax on sales/purchases - basic settings - Assign country to calculation procedure
Enter in the field tax code. This must be a 2-digit alphanumeric code i.e. A5, 55, BB, etc.. 
          o description of the tax code: please give a clear description
          o define the tax type: define whether the tax code is relevant for input or output tax
          o Indicator which determines that an error message should be issued if the tax amount is not correct. It it recommended to flag this.
     Further in the menu you can also allocate the amount where this specific tax code is used to a certain tax account. The tax type fields such as Base Amount, Input tax, Output Tax ... can be determined via the calculation procedures.  Calculation procedures are defined in the IMG at
Financial accounting - Financial accounting global settings - tax on sales/purchases - basic settings - Assign country to calculation procedure  Here you will need to define also the calculation levels. For example the Output tax is level 125 and the output tax will be calculated on the basis of the base amount. Therefore you put for the output tax in the field "from level" 100. The level of Base amount is 100. You do the same for the others.
Account Keys. 
          o NVV: The non deductible VAT is automatically added to the expenses account
          o NAV: Indicate for this key a separate account for the non deductible VAT
          o ESA: Output tax in case of Acquisition of EU goods
          o ESE: Input tax in case Acquisition of EU goodsLast but not least you also need to complete the tax rate field.
Tax Percentage & GL Account assignment
       Tax percentage can be maintained in two ways & that depends upon the Tax procedure that has been followed i.e. if tax procedure is formula based then percentage can be maintained in FTXP only, where as if the procedure is condition based then percentage has to be maintained under the identified condition type.
Once done GL accounts has to be assigned under OB40 for automatic posting of tax amounts.
Edited by: Narendar  konakanchi on Aug 16, 2008 10:12 AM
Edited by: Narendar  konakanchi on Aug 16, 2008 10:13 AM