Tax classification clarity needed

Dear Experts
In customer master data in billing tab we will give ex 1 full excise with 12.5% and 2 full excise 3% cst now if i create ne tax classification , then what all the setting i need to make , how it flows can any body help me in this regard
Thanks
Basavaraj

Hi,
First of all, which is the tax procedure you are using?
If its TAXINJ, then you create the new tax classification using OVK3 for UTXJ condition.
Maintain the tax classification in customer master for UTXJ & create a new condition record (tax code assignment) for the country/plant region/cust.tax classification/Material tax classification using VK11/VK13.
If you are using TAXINN, Maintain the tax classification in OVK3 & assign the same in the customer master to the tax condition mentioned in OVK1.
Maintain the condition record for the above condition for the new tax classification combination in Vk11 & Check.
Thanks & Regards,

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Quiz about tax classification

Hi, experts,
There is a problem about tax classification that need ur help..
In billing document, there are 2 tax classification, one is TaxClass1-Cust at header , another one is Tax class. mat. at item level, normally, there will only have 1 number on these two tax classification.
But I found in one of our billing document, there are 2 numbers in Tax class. mat., is anyone know why and what's the impact regarding this?
Thanks for ur kindly help in advance!

hi,
Tax is determined based on
1) organizational structure, country, region, or city of delivering plants and
2) country or receiving customer
3) combination with tax relevancy indicators on the customer and material master records.
check this
Customer Taxes Material Taxes Rate Taxes
 0 0 0 %
 0 1 0 %
 1 0 0 %
 1 1 9 %
In this example, if both the Customer Master and Material Master Tax code is 1, Tax will be included when you create the Sales Order.
CHAN
Message was edited by:
 CHAN HARI

Need name of a function module or BAPI to update the Tax Classification val

Hi Guru's
Need name of a function module or BAPI to update the Tax Classification value for Material master.
Thanks in advance.

Hi
U can try to use BAPI_MATERIAL_SAVEREPLICA
Max

TAX CLASSIFICATION (CREATION OF SALE ORDER)

Hello
When we are creating a sale order, we will select the tax classification code like VAT & CST. It Depends upon the consingee address.
My question, while selecting the tax classification code, I am able to see both types of codes(VAT & CST). I need to display only single type of codes, like if consignee is local, then only vat codes must be displayed and if consignee address is out of the state, only CST tax codes must be displayed.
how to do this one. should I take any ABAP help or directly we can set from functional side.
Thanks & Regards
Maheshwar Rao. G

Hi,
When we are creating a sale order, we will select the tax classification code like VAT & CST.
Do you mean you are manually changing/Selecting the tax classification in the sales order??? If yes, then you can maintain the same in the customer master--Biling tab(VAT or CST what ever is applicable) and system will pick the same autoamatically.
In sales order, SAP has given the flexibilty to change the tax classification, and based on the combination that is maintained in VK11, system will pick the condition record. As specified, table 368 gives the combination for maintaining the condition record.
Regards
Vamsi

Change Tax Classification in Sales Order

Hi all,
I have a question about tax classification in sales order.
I know that taxable or non taxable is determined by a variety of key (by material, order type, departing country & destination country, etc).
I use Domestic Taxes as a key to determine taxable or nontaxable. To do that, I need to set up tax classification in customer master and material master, right?
Based on that combination, I can determine if it becomes taxable or nontaxable and if so by how many percentage.
OK.
Here is my scenario:
The customer and material I use to create sales order is set as taxable. So, when I create an sales order, the tax and its % is automatically presented in conditions.
But how do I do if I want to make only this sales order be nontaxable?
I changed Tax classification from '1' taxable to '0' nontaxable in Billing Document Tab at Item level, but tax is still there in Condition Tab.
I thought taxable or nontaxable can be changed by this way. Am I missing some procedure?
Regards,
Screen Field:VBAP-TAXM1

Hi,
When you set the tax condition to your country and set the tax rate in VK11 based on the customer tax classification and material tax classification, it should pickup in the document.
How can it posssible to have tax for one document and no tax for the other. Tax is uniform, and it will be applicabe to all customers (certain exceptions also there). In any case the customer is not taxable ot material is not taxable, maintain the customer / material tax classification as '0' and don't maintain any condition rate for that.
Prase

New field for tax classification (Pricing)

Hi
The scenario is - we need to map a taxes from R/3 to CRM. for this we cant use MWST , as this tax condition is already being used in the current process.
If we use another condition type then the tax classification for Material doesnt get picked in CRM. So according to the SAP note -336235, we have done the development.
+The developments includes + - new field created for material tax classification purpose and this field assigned to Pricing structure KOMP and KOMG. we have also maintained condition record by using this field , but the data is not being read by this field during the calculation of taxes in sales order (R/3).The data is exist in material master -Sales org1 tab -Tax classification (1 or 0).
Could anyone let me know, that how the tax classification data can be read from material master for this new customized field.
Thanks in advance.

To use a custom field in pricing, you need to do two things:
1. Add the field to KOMP and KOMG and
2. Move the appropriate value in a user-exit.
Your post says that you have done 1. above. Have you coded the user-exit for 2. above? The user-exits are in MV45AFZZ.

Automatic creation of new tax classification

Hi
Help needed in understanding......
Automatic creation of tax classification in taxes in billing tab of customer master , after creation of a sales depot in a different country
thanks
Anil

Unless you use jurisdiction codes, and no external tax system, for
example with tax procedure TAXUSJ, there is no validity dates for the
condition records. You can see this differnce by comparing the tables
A003 without jurisdiction codes and A053 with jurisdiction codes. A053
contains the extra fields DATBI (key field) and DATAB. This is the
standard functionality.
Please have a look at the following part of note 418582:
" Changing past percentage rates has to be inhibited in order to avoid
database inconsistencies. For this reason, the functions which allow you
to transport time-dependent tax codes with percentage rates from the
past are not supported."

Material Tax Classification

Hi Gurus,
Need a little suggestion for a doubt -
I accidently changed Material Masters data of some items, after running a faulty LSMW
When I look at the change document for some of those articles it says -
Change Tax classification article 1 Ireland
So I believe it has changed the tax classification for this article ONLY for Ireland
when I reversed the change .. it says ..
Change Tax classification article 1 Full tax 0 No tax Ireland Output Tax
I have a few doubts .. first , is this changed only for a single country or for all of them .. & if I have reversed the changes ..
Plz suggest what shall I do to make it as it was ...
<< Moderator message - Please do not promise points >>
.. many thanks for your help
Edited by: Rob Burbank on Feb 7, 2011 3:54 PM

The tax classification section is dynamically defaulted based on the plants that are linked to your sales area.
for each plant country you will see an entry.
if such an assignment is made after go-live, then with the next change of material master you are asked to complete the classification.
This cannot be undone. you can just change it to another value if the value you entered was wrong.

Report of all materials with tax classif data under a certain plant

Hi All,
I need a report which will show the list of all materials and their tax classification data .(
under a certain plant ).
Preethi.

Hi,
You create the Query in SQVI by joining the tables --MARC, MVKE,MLAN.
So include the selection fields with Plant, Sales organization, Dist channel, Country, etc..
Out put fields you can include as per your requirements from all these tables .
rgds
gsc

Customer tax classification-

Dear - All
After defined the customer Tax classification in Customer Master Data- why it isnot coming to my sales order header billing view like 1 2 3 4 .
Tell me what is the best Key combination for acess sequence to mantain the sales tax condition record..Also i have created in customer master data tax classification like zvat ,zcst ,zser and ztcs, can u help and tell me the best key combination(fields) for which will creat condition table and also acess sequence.
thanks
sunil

Hi sunil
If u want to get Customer Taxes into Sales Order ..Then u have to do
1. Customer Tax Classification in Customer Master
2. U have keep this MWST Condition type in Pricing Procedure
3.. U need to create Condition records for MWST Condition type in VK11
Then u can get Customer tax in your sales order.
Any quries revert me back
Regards
Srinivas.

Passing Multiple Tax classification in LSMW BAPI method

Dear All,
Iam using LSMW BAPI method to create and change material master. I need to pass multiple tax classification values for a single material. How can I do this. The structure used in the BAPI for passing the tax classification data is MLAN. How can I create multiple numbers of this structure. Can anybody help me please.
Thanks in advance
Prathib

do you have this multiple records already in the source? Or not at all in the source?
background for tax classification
There is customizing to assign plants to sales organization.
Each plant has an adress with a country.
SAP collects all the plant countries and saves them in the tax classification table MLAN.
Eg. if this material A has a sales org EAST that can sell from plants in JP, AU, and SG
then you will see these 3 countries in the sales org view segment tax classification
In case you dont have any tax classification data in the source, then it you can do it like this:
goto the __END_OF_RECORD__ statement of E1BP_MLAN segment in your LSMW and enter it directly as code:
do the transfer_record as often as you need .
DEPCOUNTRY = 'JP'
TAX_TYPE_1 = 'MWST'
TAXCLASS_1 = '1'
transfer_record.
DEPCOUNTRY = 'AU'
TAX_TYPE_1 = 'MWST'
TAXCLASS_1 = '1'
transfer_record.
DEPCOUNTRY = 'SG'
TAX_TYPE_1 = 'MWST'
TAXCLASS_1 = '1'
transfer_record.

Updating the Customer & Material Tax Classification via LSMW only

We need to update the Customer and Material Tax Classification via LSMW only, in such a way that on the updation of the Tax classifications the Customer Master and the Material Master should be updated automatically.
Please let me know if anyone has done the same also it would be really helpful if you can provide me the details.
Regards,
Arindam

Hi,
It's not clear your question to me.
Do you want to update the Tax classification in the customer master & Material master?
I did same, but with 2 different LSMW"s as there is not link between customer master & Material master.
To update customer tax classification -
In that you have to feed relevant customer numbers with sales areas & relevant tax classification for one LSMW.
To update Material tax classification -
In that you have to feed relevant material numbers with sales areas & relevant tax classification for different LSMW.
Best regards,
Anupa

Derivation rule to determine customer tax classification in COPA

Hi Experts,
Please guide me to complete this assignment.
The requirement is to fetch the material tax classification and customer tax classificaion into COPA through derivation rule.
we can fetch material tax classification through table VBRP.
Please help me to derive customer tax classification( KNVI-TAXKD) through derivation.
Customer tax classification data is available in table KNVI.
But when you consider KNVI table through table lookup it is asking customer, country key and tax category. To define this derivation rule we need tax category values in COPA.
We can get customer and country key but not tax category.
How to bring tax category (KNVI-TATYP)
into COPA to define derivation rule to fetch customer tax classification( KNVI-TAXKD).
Please suggest me if any alternative solution to bring customer tax classification data into COPA.
Points will be assigned to usefull answer.
Thanks in advance.
Regards,
Amar.

HI,
The Tax related thing are balance sheet items . which can not be considered at CO-PA.
only revenue item will be considered at Co-pa.
Hope this is clear
With regards
krishna

BAPI to create tax classification for business partners

Hi all,
I'm trying to create tax classification for a business partner (situated in the tab Control) from a BAPI.
I tried to use BAPI BUTX_FRG0010_CREATE, but I always receive an error...
Does someone know how to implemnt this ? Or do I need to use another fm ?
Thanks in advance !
kr,
Björn

Hello,
I should have mentioned that I'm creating Business partners in ERP, and not in CRM
The error I receive is this one :
Tax classification does not exist
The data I specify in the table is the same dataI fill in when creating a business partner manually.

Routines for determine the customer tax classification in VF02

Hi
i have to find out how the customer tax classification values is coming in VF02.customer tax classification value should be '0'.but in my case it is coming '1'.
i have to find out ,how the calculations has to be done and where should i modify the value.it is an production support issue.
Please guide me .what are the possible ways to fix the issue.
Regards,
Kiran

I'm assuming that, the country is India and based on its requirement:
Sales tax is a state government revenue. There are two types of sales taxes, Local sales tax & central sales tax. Local sales tax is intra state whereas CST is inter state.
Example of LST : Point of sale i.e. delivering plant & ship to party are within the same state. The rates are defined by the respective state governments.
Example of CST : The Delivering plant & Ship to party geographic locations are 2 different states. At the point of sales from one state, the ST goes to that state govt. & consignment is despatched to the Ship to party. Once that consignment is received at the ship to party state, sales tax will be levied once the sales is registered there. For this case, the LST that is applicable by the Ship to party further will not be applicable in all probability to be captured in SAP.
Stock transfer : This does not attract any sales tax. The consignment is transferred from one D plant to another D plant irrespective of inter/intra state sales. The invoice that is accompanied with the consignment thus shall not have any final value. It's a zero value invoice, but the basic prices needed to be mentioned.
The selling organisations normally needs to register with the sales tax authority of the respective state to have a warehouse or D plant to avoid the double taxation for their dealers/distributors.
Now, the pricing procedure that is there in 4.7 is Factory sale with formula-JFACT, in which the CST condition type is JIN1 & the LST is probably JIN2. There may be surcharge cond types as well which will calculate the amount on either JIN1 or JIN2.
For config :
1.SPRO > S&D > Basic fn. > Pricing > Pricing control > Define & assign Pric. procedure > Maintain Pric proc.
2. The tax rates are normally driven from the Tax classification of Customer & Material access. To do this config, S&D >Basic fn. > Taxes. You need to include the condition type for country IN in 'Define tax determin rule'.
3. Same path : But go to Tax relevancy of master records where you configure the condition type & options of rates that will flow to these masters. One needs to understand here properly as u need to have unique combinations for picking the sales tax rates. I will try to demonstrate the smallest example. Let's say, the LST rates are 2%,4% & 0%. I will have two options for material master here. 1 for taxable & 2 for not taxable.
For customer master, I will have 1-LST 2%, 2-LST4% & 3-LST0%. When I create master records for LST thru VK11 for JIN2, I will chose the access where the combinations of customer & material tax classifications are available. If this access does not exist create it under an access sequence. But normally this is standard. The condition records will look like,
Cust-Tax classi.          Material tax claasi.        Rate           Tax code
        1                                    1                         2%               A1
        2                                    1                         4%               A1
        3                                    1                         0%               A1
Remember, rates are flown from the tax codes. Tax codes can be created thru T code FTXP. This is normally a FI job.
Hope this info helps
Regards
Manthan.

Tax classification clarity needed

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