Tax amount calculation

Hi,
Can some one help me to explain how the tax amount is calculated.
I have a tax procedure assigned to my country. I created a input tax code.
Now i used this tax code while creating a PO i entered the tax code.
How the system determine the base amount for BASB condition type to calculate tax?? Will it take from the PO ??
regards
raghu ram
Edited by: Raghu Ram Thatavarthy on Jun 23, 2009 12:17 PM

Hi
In the Tax codes, you would have attached the percentage to the account keys, which has the condition types attached to it. In the PO pricing procedure, the basis for calculation of the Tax would be available ie on what value tax needs to be calculated against the condition type. Account key can be seen against the Condition types. and from the tax codes percentages are taken and taxes derived.
Regards,
Lakshmanan Krishnan

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