Taxes in Sales

Question

Hi all,
we have a process where we have to use VAT 4% on Line item 1 & 2 and VAT 12.50% on Line item 3 & 4 , here we are using Tax calculation through Tax Code i maintain tax % condition record with combination of CountryPlant RegionCustomer region if i maintain 4% with one combination then system is not allow me to maintain 12.50 for the same. please help me how can i put two taxes in single invoice.
Regards
Vivek K. Sharma

Answer 1

Hi Vivek,
tax in SD is typically determined as follows:
(1) Tax Classification for Material
This is to distinguish between 4% and 12.5% for a material.
You can see the classifications in transaction OVK4 (under MWST).
This has to be maintained in the material master record or (at the latest) on the invoice line item.
(2) Tax codes
Tax codes should be maintained for 4% and 12.5% in TA FTXP.
(3) Condition record MWST has to be maintained
(VK11 create, VK12 change)
Typically for combination "Domestic taxes" you maintain an entry like:
TaxClassCustomer = 1 (liable) - TaxClassMat = e.g. 1 (full) - Tax code A1 = 12.5%  or  TaxClassMat = 2 (half) - Tax code A2 = 4%
(4) Invoice transfer to FI
When the invoice with the various line items/tax codes is transferred to FI, the FI document will have two line items - one for each tax code.
Hope this helps.
Cheers,
Dirk