Tax classification

hi!
how to create tax classification settnigs in billing of sales area data section of Customer Master.
thankyou

Hi,
To create new tax classification for customer master go to>>SPRO>>Sales & Distribution>>Basic functions>>Taxes>>Define tax relevancy of master records.
Select customer taxes.
In this screen enter new tax category. Tax category is nothing but the condition used in sales pricing to determine all the taxes relevant for that country.
Enter tax classification of the customer eg: 0 for tax exempt, 1 for liable for taxes.
Save the configuration.
Now in Customer master data>>Sales area data>>Billing Document screen you will get the tax category data. Enter relevant tax classification against that tax category.
System considers this classification as one of the criterias to calculate the taxes in sales pricing.
Regards,
Savita Swami

Similar Messages

  • 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

  • Error with tax classification

    Hello guru's,
    I am facing a typical error. while creating sales order the VAT condition is capturing the tax classification indicator from sold to party. It has to be from ship to party. Pl. help.
    Regards,

    Hi,
    The tax classification search is based on the Customer master data
    For TAX determination, system will first search the Tax classification of the Payer master data
    If Payer master Data is not maintained , then it will search for the Ship to Master data ,
    If none of the Payer and Ship to were maintained , then it will search for the tax classification of sold to Master data
    The Sequence for search is
    PAYER
    SHIP TO
    SOLD TO
    In your case, if the Tax classification for Payer and ship to not maintained then it will come to sold to
    Please check if the Tax classification was maintained in the ship to or not
    thanks
    santosh

  • How to make tax classification field mandatory in sales order ?

    Hi,
    while creating sales order, " how to make tax classification field mandatory ".
    Please tell me the procedure.
    In tcode OVA2. what are the entries for fields,table.
    Regards,
    sapsduser

    Dear ,
    Could you please share why you want to make tax Classification field mandatory in sales order.
    Maintain Tax classification field for customer in Customer Master Data = (Sales Area Data - Billing document Tab page)
    Tax Classification field for Material in Material Master Data = Sales Org. 1 View.
    While creating sales order and enter customer and material system automatically fetch the tax classification related data into sales order.
    Tax is calculated based on the ship to party.
    Hope this will help you.....
    Regards,
    Manoranjan.

  • 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.

  • Wrong Tax Classification Taken from Material Master

    Hi Experts,
    I have a problem with Tax classification when determining the tax % at sales order entry.  Below is the scenario:
    1) There are two taxes applicable: Output Tax (15%) and Excise Duty (1%)
    2) Customer 01 is liable for both Output Tax and Excise Duty
    3) Material A is liable for Output Tax, but not liable for Excise Duty. In material master, the tax classification is maintained as "0" for Output Tax (the first line) and "1" for Excise Duty (the 2nd line)
    4) Material B is the opposite, i.e. liable for Output Tax but not liable for Excise Duty. In material master, the tax classification is maintained as "1" for Output Tax (the first line) and "0" for Excise Duty (the 2nd line)
    5) The tax codes are defined (with tax % maintained) in FTXP
    6) Pricing condition records are also maintained.
    Now the issue is during order creation with Customer 01 and material A, both Output Tax and Excise Duty are getting calculated as Zero. Where as in case of material B, both taxes are getting calculated with value (15% and 1% respectively).
    It seems that the system is getting the tax classification from the first tax (output tax) in material master and apply it to the other tax (excise duty). Therefore the Excise Duty gets the wrong value if the tax classification is different from that of the Output Tax.
    Have anyone come across this issue before? Your help is much appreciated.
    Thanks.

    HI ,
    thanks for your reply. In the meantime I figured out the issue myself. It was due to the access sequence that only checks tax classification 1 instead of 2 , 3 etc.
    Thanks for your reply.
    Dominique

  • Uploading TAX Classification data in material master

    Hi,
    I have to upload tax classification data in material master for countries DE,IT,FR,ES,CH and GB.
    I have used BAPI_MATERIAL_SAVEDATA and passing values to table TAXCLASSIFICATIONS.
    But bapi is uploading tax classification only for country DE.
    When I am creating through MM02 its getting updated.
    Can anybody tell me what is the problem ?

    Hi Ganga,
    Yes I am passing different countries to table .
    LOOP AT IT_STAX into WA_STAX.
           wa_taxclassifications-depcountry = wa_stax-aland.
            wa_taxclassifications-tax_type_1 = wa_tstl-tatyp.
            wa_taxclassifications-taxclass_1 = wa_stax-taxm1.
            wa_taxclassifications-tax_ind    = wa_stax-taxim.
            APPEND wa_taxclassifications TO it_taxclassifications.
    ENDLOOP.
        CALL FUNCTION 'BAPI_MATERIAL_SAVEDATA'
          EXPORTING
            headdata           = wa_headdata
          TABLES
            taxclassifications = it_taxclassifications
            returnmessages     = it_return[].

  • 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."

  • 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

  • Customer Tax Classification : Missing entry screen in customer master

    Hi All,
    Anyone know if any customizing is required to activate the Customer Tax Classiification entry screen in the Customer Master of Sales Area (BillingT Tab)? I could not enter the customer tax classification as the entry screen doesn't appear in the customer master.

    Hi,
    You have to maintain few settings for this
    In OVK1 Enter the TAX CATEGORY for the Country
    In the OVK3 transaaction code enter the TAX CLASSIFICATION for the Tax category defined in OVK1
    after this assignment try to create the customer master , in the Billing tab the tax classification will appear.
    regards,
    santosh

  • 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.

  • Tax classification for sales order before ECC

    Hi expert,
    We have recently upgraded from 4.6C to ECC6.0 and noticed the following
    issue, please kindly advise. Thanks.
    The tax classification for one of the regular customer has always been
    maintained as ‘0’ (Tax Exempt).
    In 4.6C, in the sales order condition tab, the system will auto
    calculate and reflect the output tax amount automatically for this
    regular customer.
    However, in ECC6.0, with the same customer and material, the sales
    order will no longer auto calculate and reflect the output tax amount
    anymore.
    Nevertheless, if we maintain the customer tax classification field
    as ‘1’ (Liable for Taxes) before raising the sales order, or if we
    amended the sales order tax classification field manually as ‘1’, then
    the output tax amount will auto calculte and reflect as expected.
    We would like to know why is there such differences between 4.6C and
    ECC6.0. What should be the proper standard behaviour and if there is
    any actions required be get the system to perform as per in 4.6C?
    Please kindly advise. Thanks.
    Best Regards,
    Vincent

    Hi,
    I am sure you must have done some of the analysis already on these points but it does not harm to do it again: 
    1) Check the Customer Master and check the Tax Category of the Customer to make sure that it is maintained as 0;
    2) Check the Tax Record [MWST Tax Condition Type normally] for whichever tax table you are maintaining it for exists 
    3) Check in the Condition Tab in Pricing Details if you are finding the assess to the Tax Records happening for the Customer and Material combination.
    If you find any of these three as the smoking gun you should be good.
    I do not think personally that if the issue is only with one customer that this is an upgrade issue. Even otherwise, Tax related stuff has not changed in anyway between those versions.
    Get back to me if you have any questions.
    Thanks.

  • R12 - Input and Output Tax Classification Codes in Invoices Workbench

    Hello,
    After upgrade from 11i to R12, in invoices workbench, the Tax Classification Code LoV (invoice line field) contains taxes that formerly were both input and output.
    In the E-Business Tax Implementation guide says that :
    Release 11i tax codes and tax groups migrate to E-Business Tax as tax classification
    codes. Payables and Purchasing tax codes migrate as tax classification codes under
    ZX_INPUT_CLASSIFICATIONS. Receivables and Projects tax codes migrate as tax
    classification codes under ZX_OUTPUT_CLASSIFICATIONS.
    In invoices workbench form (APXINWKB), I looked in the record group for the LoV and the values are all from the same view zx_input_classifications_v.
    SELECT lookup_code, meaning, description
      FROM zx_input_classifications_v
    WHERE lookup_type = 'ZX_INPUT_CLASSIFICATIONS'
       AND org_id IN (:inv_sum_folder.org_id, -99)
       AND enabled_flag = 'Y'
       AND nvl(:inv_sum_folder.invoice_date, sysdate)
                    between start_date_active and nvl(end_date_active, :inv_sum_folder.invoice_date)
    UNION
    SELECT lookup_code, meaning, description
      FROM zx_input_classifications_v
    WHERE lookup_type = 'ZX_WEB_EXP_TAX_CLASSIFICATIONS'
       AND org_id IN (:inv_sum_folder.org_id, -99)
       AND enabled_flag = 'Y'
       AND nvl(:inv_sum_folder.invoice_date, sysdate)
                    between start_date_active and nvl(end_date_active, :inv_sum_folder.invoice_date)
    It follows that some formerly Payables and Purchasing tax codes were migrated as 'ZX_INPUT_CLASSIFICATIONS' or 'ZX_WEB_EXP_TAX_CLASSIFICATIONS'.
    Anybody knows how is the 11i tax code data migrated to R12 ? Is this the intended behavior ?
    Thanks

    I'm not a functional expert but I would suggest reviewing the following docs and see if it helps.
    How To Update EBusiness Tax Lookup Codes? (Doc ID 466578.1)
    Payables - Invoices - Invoice Lines Tax Classification LOV duplicating entries (Doc ID 1265315.1)
    Upgraded Tax Classification Codes Not Enabled For Iexpenses (Doc ID 851607.1)
    Thanks,
    Hussein

  • Tax classification fields are not appeared in master data

    Dear Experts,
    I searched the forum about my issue but i did not get any solution.
    I am not able to see the tax classification fields in customer master and material master.Even i assigned Country IN to JLST and JCST condition types by T-code OVK1.
    FYI
    I have copied the org elements from standard (which are already given by default).Initially i was able to see 2 different countries with tax MWST in both customer master and material master.
    EX:
    AT   MWST
    DE   MWST
    But i do not wanted these. so i deleted these assignment from OVK1 and assigned country IN to JLST and JCST,and i went to customer master and material master but those fields are not appeared.
    Note:Country of plant,company code and sales organizations is IN
    Help me to view tax classification fields in Master data.
    Thanks&Regards
    Ravikumar.R

    Then how system knows this customer is liable for JLST.
    In customer master, under the Taxes tab, it would be like
    Country::::Name:::::Tax Cat.::::Description::::Tax Classification
    While creating customer master, if your configuration is in line with standard, then under the tab Tax category, you can see MWST flowing automatically.  You just have to input tax classification as 1, 2 etc.,
    Also since as you said above, you are maintaining the combination of country/plant region/customer region/customer tax classification/material tax classification, you can very well differentiate VAT & CST.
    Wherever customer region comes as your plant region, assign VAT tax code and wherever, customer region differs from plant region, assign CST tax code in VK11.
    G. Lakshmipathi
    ps:  please spell the name correctly

  • Use of tax classification  in material master

    use of tax classification  in material master

    Hi
    The indicator with which the system determines output tax for the material when processing sales and distribution-specific documents.
    Generally it is done Country-wise. Like for one country No tax is applicable, for other country Full tax applicable.
    Thanks
    Prashanth

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