Function of Tax code in tax determination

1.What is the function of Tax code in tax determination, and where it is assigned ?
2.What is the use of VAT registration number in Control Tab page in Cusomer master ? Does it effect the tax determination in a transaction ?

Hi Sunil,
1. Tax code determines the percentage of tax on purchases
Steps for Tax determination:
Define Condition Types
Define Procedures --- You need to define the tax calculation procedure for your country
   Select the calculation procedure / control data------- give the Procedure for tax determination
         You create the tax code at Tcode-- FTXP
There you provide the tax percentages for the tax code
    Define the tax account the Account key (OB40), which will be an account determination
2. VAT registration No in customer master will be used for any kind of tax exemptions if applicable
There can be impact inthe tax determination as the customer is entitled for the exemption.
Award points if useful,,
Thanks and regards,
Sri

Similar Messages

Deafult tax code and tax jurisdiction per vendor

Hi,
   We are using tax jurisdiction in Process, now while creating Po every time according to vendor we have to enter the tax jjurisdiction and tax code , i s there any mwthod with which we can set default tax code and tax juridiction code as per vendor means we want to maitain as per vendor code, so that for eah item i n that PO , tax code and jurisdiction code will come automatically.
I have also check by making the tax jurisdiction code mandatory in Vendor master , in vendor master i have added tax jurisdiction for the vendor but while creating PO, system is not selecting the tax jurisdiction automatically.
   regards,
    zafar
Edited by: zafar_karnalkar on Jun 4, 2010 6:18 AM

Hello,
Tax Jurisdiction code will be determined from the plant. Please check your Plant/Site Master. SAP provided a BADI ME_TAX_FROM_ADDRESS also to redetermine Tax Jurisdiction code based on custom logic.
For Tax codes, you have to maintain condition records for condition type NAVS using MEK1. There are many standard access sequences available to maintain this. You may also build custom one if needed.
Thanks,
Venu

Creation of Tax Code - Service Tax + VAT

Hi,
I want to create new tax code
Service Tax - 4.12% + VAT 5%.
The steps i followed is in FTXP,
1. Against JSRN given value - 4.12
2. Against JVRN given value - 5%
But it gives me error. Define tax code at level 510.
I want to create new tax code SV which includes Service Tax + VAT.
Kindly let me know the proper way to do it and where i am going wrong.
Regards
Manisha

Hi,
My problem is not yet solved.
I want Service Tax - 4.12% + VAT-5% under one Tax code SV.
I repeat I have created tax code SV
In FV11,
for JSRN i give tax code SV and value 4.12% for Service Tax but for JVRN when i give tax code SV and value 5% it gives me error :
'Tax indicator SV has percentage rate 4.12%'.
Kindly let me know proper solution, i have checked settings are all proper as per your replies.
Just let me know how do i create the two taxes JSRN and JVRN under one tax code SV because SV accepts only one fixed value.
Regards
Manisha

Tax Code and Tax Amount Fields are not appearing

Hi to all,
While making Downpayment Request (F-47) Tax Code and Tax Amount Fields are not appearing in the screen.
for more clarity...
suppose PO is 1150 include all taxes ( Amount 1000+ Tax Amount 150)
as per agreement with vendor we need to raise DR for 1150 and based on DR we will make downpayment to vendor (F-48)
But in F-47 screen Tax Code and Tax Amount fields are not appearing.
Could any body help me on this??
Thanks in Advance
Regards,
Schilukuri

why you are looking for tax code field, pay gross amount as per PO, same amount will update in PO history as well as Vendor account.
Even if you find the tax code field and check the tax code check box, system will not calculate tax at the time of down payment or down payment request.
Please remember that by default standard SAP provides the tax code field in f-47 or F-48.

Reg: tax code and tax percentage

hi all,
i have tax code, from that how can i get the tax percentage
is there any table which maintain both tax code and tax %
thanks
suresh

Hi,
For calculating Tax you need to look into KONV table.
Based on the pricing conditions you need to calculate the Tax percentage.
you can just go the particular transaction for which you want to calculate the tax and there you
can find the prricing conditions declared under the tax based on which you will calculate the tax.
Regards,
Raj.

Determination of TAX Code from Tax Percent

Hello Gurus,
I have a requirement wherein, i need the VAT Code(Tax code) based on the tax percentage which I have.
I have with me the following information only:
1. Total amount(net + tax)
2. Tax Amount
3. country
4. company code.
5. Tax Percentage
Can you please let me know as to how will i get MWSKZ field based on above information. i.e TAX code.
<< Moderator message - Everyone's problem is important. But the answers in the forum are provided by volunteers. Please do not ask for help quickly. >>
Edited by: Rob Burbank on Oct 28, 2011 9:20 AM

Hi Manoj,
Go through the below tables .
<div class="jive-quote">T007A                       " Tax Code and Country
A003                        " Condition Code
KONP                     " Tax percentage
</div>
Regards,
Maruthi
Edited by: Rob Burbank on Oct 28, 2011 9:21 AM

List of tax code with tax rate

I need a list that give the tax code with the tax rate.
I can view this in SAP or witch table i look this.
Moderator: please do not log issues twice and crosspost into different (and wrong) forums. Thread relocated to ERP Financials and locked.

hi
>i wanna see the list of the tax code defined for the Service PO in its "invoice" tab.like for service tax we have three tax :
check T code FTXP
> tax code displayed to which the calculations are applied
check t code OBYZ
regards
kunal

Configuration of Tax code under Tax Jurisdiction for Canada

Hello All,
We need to create new tax code for Canada & use Jurisdiction code.
We have created a new jurisdiction code.
Now, at the time of creation of tax code, it is observed that some line is active whereas some line is deactive.
Question:- is there any setting wherein we can define a tax line item as to active or deactive for a given tax procedure?
Thanking you in anticipitation
Regards
Santsoh

Hi,
In FTXP, the tax line will be active only when you enter some rate in it, even 0 % rate.
However you can manually deactivate the tax line in FTXP.
Regards,
Gaurav

Blocking of FTXP - tax codes & TDS tax codes

Hi viewers,
my client is being with SAP from last 7 yrs. Every year we used to create new Tax codes..... so now it became a big list. my client wants to block all the previous years tax codes.( i.e it should not appear in FTXP) & also TDS tax codes...... so pls let me know is there any process to block.
Rgds,
Swathi

Hi
Regarding EWT Tax Types and codes.There is a step Activate Extended Withholding Tax, DESELECT the extended withholding tax checkbox. then these tax types and codes will not get displayed.ie they in HIDE mode.
Regards
Venkat
Edited by: Venkat Dara on Jan 6, 2009 9:05 AM
Edited by: Venkat Dara on Jan 6, 2009 9:44 AM

Functional module for determining the sales tax code

Dear all,
Kindly help me is there any Functional module to determine the sales tax code?
My Requirement is Based on the Country, Sales Org and Tax code Pricing should pick up automatically.
I tried adding the same fields in the table and inserted in the access sequence and created the condition record for the same.
Created the order but system is not able to get the Tax code while determining the price?
Please help ...
Regards,
SK

My Requirement is Based on the Country, Sales Org and
Tax code Pricing should pick up automatically
but system is not able to get the Tax code while determining the price?
Your both the above comments are contradict to each other. In the first statement, you say pricing should pick up automatically whereas, in the next statement, you say tax code is not determining. Please indicate the requirement clearly.
thanks
G. Lakshmipathi

Automatic tax code determination for service POs

Hi
Can anyone tell about the possibilities of automatic tax code determination for the service purchase orders.
Thanks in advance
Durai

The tax indicator is used in the automatic determination of the tax code
in Purchasing.
The tax code can be determined automatically within the framework of tax
determination (via the conditions).
Tax indicators, which can come from the service master record,
Customizing, or the purchasing document, are used in this process. The
system determines the tax code on the basis of the combination of these
tax indicators.
Automatic determination of the tax code is useful, for example, if
different tax rates apply to different groups of services.

RFWT0020 withholding tax data - Data Regen vs. Change to Source Tax Code?

Can anyone explain the difference between these two options when running RFWT0020 to update withholding tax data? Data Regeneration vs. Changes to Source Tax Code? I can't find any mention of the two options in the program documentation
When I do test runs with the two different options, the program is selecting difference documents to update. If we are just turning on the 1099 functionality now (beginning with the 2011 tax year), should I run the program once with Regeneration mode and once with Changes to Source Tax Code???
Thanks for any advice!
Allison

Hi,
he program enables the withholding tax code to be changed for reconciled and open items with existing withholding tax data. For this, the tax rate of the existing withholding tax data as well as the tax rate of the new withholding tax code must be 0%. The new withholding tax codes are taken from the customer or vendor master data. In the case of extended withholding tax, the withholding tax code is only changed if the related withholding tax categories are the same. The withholding tax base amount is not changed by this procedure.
Recreating or changing the withholding tax data requires that the program first be executed for invoices and then executed for payments in a subsequent step.
When you start the program, the selection screen appears. You can make selections according to vendors, tax code 1, tax code 2 (vendor master record), customers, tax code 1, tax code 2 (customer master record), company codes, document numbers and posting data. The selection determines which items are checked for possible subsequent entries in tables BSEG, BSAK, BSIK, BSAD, BSID, WITH_ITEM.
You can also decide whether only withholding tax data is to be handled for cases where the documents in question contain no withholding tax data. There is no withholding tax data if no withholding tax entries exist for the item selected in table WITH_ITEM (extended withholding tax) or the die withholding tax fields in table BSEG are not filled.
The selection can also be made in test mode. If you do this, no changes are made in the database. You are therefore advised to run the program in test mode initially.
Regards
Aditya

Error when create bid invitation (Tax code CN in procedure TAXD is invalid)

Dear All ,
We have issue in our PDP scenario, when creating a bid invitation from a PR (from R/3), an error occured with message" Tax code CN in procedure TAXD is invalid".
I already raise an oss message and the reply is because the system take different company code that's not active in R/3 system. Its because TAXD procedure is assign to country DE (German) and company 0001 country is "DE".
BE_STGE_LOC 9114
BE_PLANT 7008
BE_BATCH
BE_VAL_TYPE
BE_MOVE_REAS 0000
BE_EXPERYDATE
BE_PUR_GROUP
BE_PUR_ORG
BE_CO_CODE 0001 --> supposed the Correct company code is "8008"
CALL FUNCTION 'FI_COMPANY_CODE_DATA'
EXPORTING
I_BUKRS = BUCHUNGSKREIS
IMPORTING
E_T001 = T001.
We wonder how the system assign company code 0001 with plant 7008, since in R/3 Plant 7008 is assign to company code 8008.
The company code 0001 is not active in our R/3 system.
And also its not happen for all document , so just for several document, and not just in this plant (7008).
The OSS reply also mention that the company chages is because this badi
implementation ZBBP_DOC_CHANGE_BADI with object type 'BUS2121' method 'BBP_SC_CHANGE' 'Method for Changing Shopping Carts'
======================================================
Assign the appropriate company code and modify the ET_ITEM table
ls_item-be_co_code = ls_locmap-company_code.
MODIFY et_item FROM ls_item.
======================================================
But we already use this badi for several years, and we're not sure that this badi id the root cause,and until now there still no solution for this issue.
Please kindly advise.
Regards,
Darwin

Hi SG,
In SPRO > IMG > SRM > SRM Server > Cross Application Basic Settings > Tax Calculation
1.Determine system for tax caluclation : Choose either no tax calculation or Tax calculation occurs in back end.
2. Enter Tax code : Mention Tax indicator as I0 and tax description Zero Tax, Check the No Tax check box and make it default based on your requirement.
Please follow the above steps based on your requirement which will definitely resolve your issue.
This issue comes when the tax calculation happens in the SRM system and the tax code I0 is not defined in tax procedure TAXD.
Hope this makes you more clear. Clarifications are welcome.
Award points for helpful answers.
Rgds,
Teja

Error FF753 Tax code 01 not appear in any G/L account item with FM Active

Hi
We have fund management configured for one of the company code, while creating billing document through VF01/VF02 we are getting the Error FF753 Tax code 01 not appear in any G/L account item.
This error however does not appear when posting directly from FI with the same tax code.
I have tried to change the message control in which case i am getting a dump pointing to PSM-FM.
Please advise.
Regards
Sandeep

Hi:
          If you could please refer to the contents of OSS Note 112609 - How are tax codes transferred to conditions ?
"Symptom
If a billing document is transferred to accounting the system displays error messages. Transferring tax codes from tax conditions into the pricing conditions and discounts does not function as expected.
Other terms
FF805, FF747, FF753, MWSKZ, MWSK1, tax code
Reason and Prerequisites
The tax condition in the SD pricing procedure contains incorrect reference steps, there are several tax conditions in the pricing procedure of which the tax codes overwrite each other or a program error exists.
Solution
In the accounting document for a billing document, the different G/L account line items are provided with a tax code. The tax code of the G/L accounts is transferred from the tax condition(s) of the billing document. How are the tax codes of the tax conditions transferred into the other conditions of a billing document ?
Basically:
The conditions of a billing document are read from top to bottom. As soon as an active tax (inactive = ' ') is read, the system transfers the tax code of this tax into the non-tax conditions as follows:
    1. The reference steps (From-step, To-step) are read (the reference steps are defined in the pricing procedure).
    2. The tax code is transferred into all conditions, for which
    the step number of the condition lies in the pricing procedure between "From-step" and "To-step",
    the condition is not inactive (exactly: the inactive flag is not equal to A (Condition exclusion), M (Inactive due to manual entry), or X (Incorrect)),
    the condition is not statistical (if it is no invoice list condition),
    the condition is no tax condition.
After the transfer of the tax code the system searches for the next active tax. If further taxes are found, their tax code is again transferred according to the above procedure. If the reference steps of different taxes overlap, tax codes that have already been transferred are overwritten. To all non-tax conditions which in the pricing procedure stand after the last tax condition the tax code of the last active tax condition is transferred if they are not statistical.
Special features:
    1. If the "From-step" of a tax condition refers to a subtotal of the pricing procedure, the tax code of the tax is not only transferred into the conditions with step number between From-step and To-step but into all non-tax conditions for which
    the step number of the condition in the pricing procedure is lower than the "To-step" of the tax condition.
    the condition is not statistical (if it is no invoice list condition).
    the condition is not a tax condition.
    2. If the "To-step" of the tax condition is smaller than the "From-step", then the system sets "To-step = From-step".
Notes:
    1. As of Release 4.0 the tax code is no longer transferred in pricing but only when the billing document is released to accounting.
    2. If you use several taxes and tax codes and Customizing is incorrect for the release of billing documents to accounting, among others the system may display error message FF747.
    3. If there are several taxes in the pricing procedure refer to Notes 72173 and 82091 for Releases 3.0D - 3.1G. For Release 3.1H, only note 82091 is relevant.
    4. For conditions which are transferred into accounting (thus not statistical, not inactive conditions) and do not contain a tax code, the system searches for a default tax code which in Accounting Customizing can be set depending on the company code (tax code for non-taxable transactions). This applies to releases up to and including Release 4.5B. For Release 4.6, refer to Note 385127."
Regards

Tax Code for NR00 Free Goods

Hello,
I have configured discount-in-kind free goods using the standard NR00 condition type. With the necessary configuration and condition records in place I am attempting to test my setup by creating a purchase order.
The discount-in-kind calculation is working correctly, creating item 11 containing the free goods quantity (set up as exclusive).
However, I am receiving the error: In case of ERS, please enter Tax Code. Due to our business process the user is not able to enter this manually, it must be automatically populated.
We have a tax condition type on in our main calculation schema which is correctly determining the tax code for the item 10. However, this is not getting copied down when item 11 is created, and since it is a free good, there is no condition tab which is used to determine the tax code.
Am I missing something or is there additional set up to populate the tax code for the free good? Our taxes are somewhat complex as we operate cross boarder (one material may be not taxable in one country, and taxed at different rates in another one).
Thanks in advance,
Matt

Hi,
ERS indicator is based on Vendor Master if you are creating PO for that vendor for all items it will ask for Tax code
Since tax code is mandatory to for ERS to run in backgeorund
Now if you are using one line item as free goods you need to create some dummay tax code with ZERO tax
Hope its clear
Thanks
Diwakar

Function of Tax code in tax determination

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