Tax Exemption for a Contract Account

Question

Dear Experts,
A tax is raised during invoicing of electricity bill for all Contract Accounts. I have a requirement where I have to exempt tax for some Contract Accounts. The tax code has been defined in IMG in Financial Accounting.
When inputting the Tax Code in CAA2 in the Tax Exemption grid, I get the error message - 'Enter a valid tax procedure' .
Have I missed a Config?
Kindly advise
Malini

Answer 1

Dear Richa,
Find below the configuration done:
1) Financial Acctg >>Fin Acctg Global Settings >> Tax on Sales/Purchases >> Calculation >> Define Tax codes for sales/Purchases>> Define Tax code
2) Financial Acctg >>Fin Acctg Global Settings >> Tax on Sales/Purchases >>Basic Settings >> Check Calc Proc >>
   (a)Define Cond type (b) Define Proc
3)  Financial Acctg >>Fin Acctg Global Settings >> Tax on Sales/Purchases >>Basic Settings >> Check & Change settings for Tax Proc
4) Financial Acctg >>Fin Acctg Global Settings >> Tax on Sales/Purchases >> Postings >> Define Tax Acc
5) Financial Acctg >> Contract Acc Receivable & Payable >> Basic Functions >> Doc >> Maintan Doc Assignment >> Maitain Transanction for ISU/IST > Define Acc Assignment for Auto Posting >> Auto GL Acc Determination >> ISU Define Acc Assignement Data Relevant to Transaction
6) Financial Acctg >> Contract Acc Receivable & Payable >> Basic Functions >> Postg & Doc >> Doc >> Define Acc Assign >> Auto GL Determination >> Define Acc for Sales & Purchases Tax
7) Financial Acctg >> Contract Acc Receivable & Payable >> Basic Functions >> Postg & Doc >> Doc >>  Maintain Doc Assign >> Define Sales/Purchases Tax Determination
Have I missed something?