Tax not Calculated on Activity created through Service master

Question

Hi;
For different TAX values on Multiple line items in P.O, i am using Service Master to Create an Activity, and call that activity in my Service entry sheet.
Now When Service entry sheet (P.R) is adopted in P.O it doesn't calculate tax.
Any valuable information on this would be highly appreciated.
Regards.

Answer 1

Hi,
In the purchase order the taxes are calcuated at item level. In the              
service entry sheet the taxes are calculated at service level.
The non-deductible input taxes both in the purchase order and on the             
service entry sheet serve for the commitments structure and for                  
information.                                                                     
The tax actually paid with the invoice is later more precisely                   
redetermined by the invoice verification in the system.                                                                               
You can set the Customizing alternatively that the          
taxes are calculated at service level instead of at item level. This             
setting is particularly useful if different services of an item are to           
be taxed differently as it is the rule in countries with                         
jurisdiction-dependent taxes.  Please check your settings in transaction ML100.
In this connection, refer to Notes 498878, 495316 and 371595.    
Regards,
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