Sales tax exemption based on material usability

Hello Gurus
We have a unique requirement for tax calculation. For some entities in our organization, sales tax are exempted based on the material usability by the customer. Therefore we need to add some attribute in the Sales Order line that will drive the tax exemption status. Is there any standard configuration that could take care for this? If not, could you please give an example on how did you guys approach in your previous experience

FYI, Taxes depends upon the
- tax classification for Customer
- tax classification for material
- Tax depart. country, i.e., Region of Delivery Plant
- Tax dest. country, i.e., Region where the material shipped means Ship-to Party country
If you maintain access including above fields, say, either of following:
- Country / Plant / Region / Region / Tax ClasCust1 / Tax ClassMat1
- Country / Region / Region / Tax ClasCust1 / Tax ClassMat1
- Country / Country / Tax ClasCust1 / Tax ClassMat1
For configuration, refer following link:
[Define Tax Determination Rules|http://www.sap-img.com/sd009.htm]
For exemption, in VK11 & customer Master for the TAX Condition type, maintain tax indicator as 0.
Refer following SAP Consulting Notes:
- Note 872449 - the sales tax identification
- Note 191932 - Incorrect tax classifications in the SD document
Even you can put Tax classification, Materials Tax classification & Customer Tax classification in SDN or google search to see discussed topic links on the same for reference, like, The tax classification of the customer.
Regards
JP

Similar Messages

Sales tax exempt indicator?

Is there an indicator in Project Systems that marks a project as "sales tax exempt"?
We have certain projects where we are exempt from paying sales tax for materials and we would like to mark these projects as Exempt. I don't see any indicators in the Project Definition JC20N but didn't know if this would appear somewhere else or as a config setting.
Ultimately we would like the tax exempt status to flow to AP where sales tax would be blocked when the clerk enters the invoice.
Thanks for the help,
Jeff

this is controlled from the material master, sales tab, you can enter tax code
when this material is selected for procurement via external activity or via item category N in internal activity then it should come up with the tax code entered in the material master
Same works in SD when you choose the material in sales line item for AR side

Block sales order creation based on material qty

Hi,
In my scenario i want to block the sales order creation based on material qty , how i can do this?
Example:
Material qty below 100 = able to create sales order
Material qty above 100 = not able to create SO
Thanks,
Arun

Hi
For restricting the order if it is less than a specified qty, you can maintain the 'min order qty' in material master.
But your requirement is the other way round - Restrict order if it is more than specified qty.
In this case, you need to use the following sales order exit in progran MV45AFZZ
u2022 USEREXIT_SAVE_DOCUMENT_PREPARE
Use this user exit to make certain changes or checks immediately before saving a document. It is the last possibility for changing or checking a document before posting.
The user exit is carried out at the beginning of the FORM routine BELEG_SICHERN.
Hope this helps.
Regards
Madhu

Maintain Sales Tax Exemption Certificate info in Customer Master Record

Hello people!
I really need your help in this one: we are going to implement SAP in a company settled in Canada. The users requested us that it is highly important to maintain Tax exemption certificate for GST (GST is "Goods and sales tax" -- not withholding) in the customer master record.
I couldn't find anything in SAP to store this info in the Customer Master Record... have you ever had this issue before? is there a workaround? We are not using any external tax system (for example: Vertex). Any information is useful. Thanks in advance. Maria.

Hi Maria,
I was going through how GST works and I think you can create Tax codes under withholding tax and use the same as withholding tax.
As per my understanding of GST, all your process can be met...
However, for reports because there is no standard avail, you would need to develop reports..
Hope this helps..
Cheers,
Redoxcube

Sales Tax code mandatory in Material Master

Hi,
I am into developement and trying to create a material.In the Sales View1 tab it shows me 2 entries under Tax data.
One entry for DE and other entry for the country I am working for.
All the sttings seems to be similar vis a vis Sandbox where I could see only one entry.
What could be the reason.I don't want to have DE entry for tax there.
Also, I have to enter the tax code there.I am using zero tax(v0) and it asks me to put it there everytime.
How to make it optional.I do not remember how it was done in Sandbox as it does not stop me there.
It's urgent.Please suggest.
Thx in advance
Regards,
manOO

Hi Steve,
thx for that.I have created one procedure for my country and have assigned it to country coe.I have done all the settings similar to Sandbox.I have created zero tax code since there is no tax involve for some reasons but i guess even there is no yax one has to create this calculation procedure and assign it to country code and then subsequently via FTXP create tax code for zero tax and then use it when required(for example at the time of invoice)
what I did not understand as asked earlier is that why system is showing me 2 tax codes DE and AE in sales 1 view ?and why it is showing me mandatory entry.
Showing up of 2 entries is okay but then I have to enter zero tax in both the lines.That is why i asked how can I make it optional.
Is there any way ?
I tries to search in the material master field status... but the group 190 where i could see this tax cose field is already optional.
What could be issing here ??
Thanks in advance
regards,
manOO

Billing issue: No one in the overseas call center understands state tax-exempt license numbers, but we need a refund of sales tax

I've just purchased a year's license to Creative Cloud on my unit's tax-exempt purchasing card, but the tax was assessed anyway. Several calls to the help desk revealed that no one has been trained in U.S. state sales-tax exempt organizations, and so I have no way of trying to get this charge backed out - which will result in a big accounting headache.
Is there anyone out there who may be able to help? Unfortunately there seems to be no way to escape being connected to the overseas call center, where managers aren't really able to provide any assistance either.

I will make a complaint to the better business bureau. I'm out $48 (because I gave it to my brother- we are both college students paying our way through school- except I'm in my 30's and also paying bills). It isn't a lot of money but its a spit in the eyes from Verizon. 15 year customer- so what- spit in the eyes. Sells Verizon phones at her job everyday when she's not working really hard in school- so what- spit in the eyes. I'm also forwarding all of this to our district Verizon rep- see what she says.

Sales tax in information record -ME11

Hi Experts!!
We have a requirement to include sales tax for a material @ info record level.Client:FMCG Sector.
Requirement:
Same raw material is manufacture to Product A there it should not have sales tax included. The same raw material manufacture to Product B then it has sales tax. My idea would be differentiating material w.r.to Purchase organization. I Wanted to know this the best practice used, or any other Best Practice followed.
BR
Bharath

Dear,
Sales tax... Tax that applicable on sale of items or products.
Same raw material to manufacture Product A - No Sales Tax.
Same raw material to manufacture to Product B - Sales Tax applicable.
How sales tax applicable if its a inhouse production... any specific business process involved which leads to Sales tax applicable - OR - you are sending raw material to some vendor or manufacturer for producing your product A & B???
Regards,
Syed Hussain.
Edited by: Syed Hussain on Dec 22, 2009 6:08 PM

Sales tax in sales order & billing

hi,
if i maintain sales tax condition type in customer master, while doing VA01 the sales tax must come automatically without selecting the condition type.in sales order PR00 only we want to enter.
or suppose i maintain sales tax condition type in material master, if i select material in VA01, is it pickup the sales tax condition type automatically.
can any one give me the suggestion on this.
govind.

Hi
Posting of Sales Tax or any taxes are thru Tax Codes. We have to configure tax code A0 for out put tax & V0 for input tax. Tax codes can be configured thru T-code - FTXP. The rate can be maintained at config level while creating the tax code or else we configure the tax code and later we shall maintian rate for the tax code in T-code FV11.
Note: - Tax codes are exported from one client (development client) to anoter and inported in receiving client (testing cleint).
Taxes rate maintaince is not thru VK11 it is FV11 for a tax code.
Thanks
Colin Thomas

Separate tax line item based on material line item in MIRO

Hi Guru,
PO qty is 100 unit with RM1/each. Condition maintained as sales tax 10%. I did 2 GR separately (MIGO) for said PO with 10qty & 20 qty each. That means sales tax total is (30qty x RM1 x 10% tax) = RM3.
Now I wanted to do IV (MIRO). I noticed 3 line item altogether as show below;
1. 10qty & RM10 (material)
2. 20qty & RM20 (material)
3. 30qty & RM3 (tax)
All line item qty & amount are correct but then the tax line is accumulate altogether. User wanted this separate like how the 1st & 2nd line item is. The reason is the user only wanted to post 1st line item with tax that belongs to 1st line item this month & the 2nd line item may post next month. Please take note that according to our business process, user are NOT allowed to make any changes in qty or amount in MIRO.
May I know how we can separate all condition type amount & qty based on GR qty so that user can select each pair accordingly & able to post it.
Thanking in advance.
rgds,
nema

Dear Experts,
Can anyone assist me?
rgds,
nema

Custom duty should be copied into the Sales order based on material

Hi,
Requirement is only Custom duty Tax condition types to copied into the sales order based on material (for e.g A) .Suppose customer X is buying material Y then different tax condition types is to be applied but if the same customer is buying material A then only Custom duty will be copied.
But we can set in the customer Master whether the maerial is taxable or not.So where to do the right tax classification settings so that sysyem will automatically fetch the right tax condition types if i enter one material which is applicable for Custom Duty only
We are using TAXINJ.
Regards
Jyoti

Dear Jyoti
As per your post, the material code is different for the same customer and hence you can differentiate the tax classification in material master. That is for material X, if you maintain Tax classification 1 in Sales Org1 view, maintain 2 for the material Y.
Now maintain different tax code for these tax classifications in VK11 / UTXJ.
thanks
G. Lakshmipathi

Sales order -Tax Exemption License and Excise duty Tabs In IDEAS

Dear Team,
Kindly anyone explian me wat are the importance of the Tax Exemption License and Excise duty Tabs In sales order - IDEAS, ECC 6.0.
Please explain me how to maintain currently it is in greyed mode how to maintain and what is the importance of the said tabs.
Regards
abhi

No answers

Calculate sales tax based on all line items on the order

My users have asked to determin tax on the sales order, based on all the line items on the order. For example, if all the items are for product only, or if all the line items are for labor only, or if there is a mix of product and labor,
Order 1
line 1 product flag as both for vertex
line 2 labor flag as both for vertex
Order 2
line 1 product flag as product only
line 2 product flag as product only
Order 3
line 1 labor flag as labor only
line 2 labor flag as labor only
I do not see away to do this while the order is being created. In the order 1 example above, line one is entered, priced, and taxed as product only (it is the only line on the order at that time and it is product only). Line two is entered, it is marked as both. But I cannot send line item one back through vertex marked as both. Vertex processing is already complete.
I have looked at using both FYTX0001 and FYTX0002. With both of these exits I can only work with a single line item, i.e. once item one is processed it will not go through the exit when item two is added.
Any assistance would be appreciated.
Jay

Hi WCG,
Our business is located in California as well. California is a modified-origin state, where state, county, and city taxes are based on the origin of the sale, while district taxes are based on the destination of the sale. You only need to add Sales tax when your customer's billing address is in California. I do not believe that Catalyst currently supports district based sales tax. You could look into a third party solution like TaxJar and see if it could be integrated into Catalyst. We currently charge our California based customers exactly what we would charge them in our retail store.
So you want to do something like this:
-Ryan

Fetch the plant(werks) based on material,sales orgnization and division

Hi Experts,
I need your help.Please please help me.
Is there any way/table to get the plant based on material,sales org and division?
Please help me.
Edited by: Sonali Chandra on Apr 17, 2009 11:30 AM

Take the following fields in your 1st itab (itab1)
Material
Sales org
Division
Plant.
Take the following fields in your 2nd itab (itab2)
Material
Plant
To get the plant values in itab1, you can use the following logic.
Loop at itab1
Read table itab2 with key material = itab1-material.
Itab1-plant = itab2-plant.
Modify itab1 by transporting plant.
Endloop.
Hope this will help you.
Regards,
Deepa Kulkarni

Hos can I confirm tax exempt status to get sales tax refund

Hos can I confirm tax exempt status to get sales tax refund

Hi There,
If you have a Tax exempt certificate then you just have to contact us via: Contact Customer Care.
Thanks,
Atul Saini

HT5557 Why is British Columbia sales tax being charged on iBooks when BC's own documentation says that electronic books are exempt from sales tax?

I recently bought a book on iBooks and on the invoice realized that provincial sales tax (pst) was charge. As I knew books were pst exempt, I went to look at the government's website to see if they mention electronic books. I found the aptly named "What's taxable and what's not" (http://www2.gov.bc.ca/assets/gov/topic/BED47DA4EBDBA60A5F28622B8B2E1451/uploads/ whats_taxable_whats_not.pdf) and started looking. On the first page, it distinctly says electronic books are exempt.
So, my question is - why are we getting charged tax when our government says that electronic books are tax exempt?

no, that's not a reason you would use a class file.
anyway, your document class variables are defined on the main timeline so to reference them from any timeline you can use:
MovieClip(root).w36; // for example (but it's really undesirable to have coding in more than one timeline)

Sales tax exemption based on material usability

Similar Messages

Maybe you are looking for