Where to collect sales tax?

I'm setting up a new BC site, have the shopping cart, shipping, and payment gateways all configured. Now I'm trying to figure out the tax stuff. We will be selling physical products into all 50 states, so we need to collect sales tax for each state. I see the ECommerce : Tax Codes section, and have added all the US States. But how do I get this to calculate for my products?
I see that I can add a single state tax code to a single product, but I need each of our 56 products to be available in all 50 states, all of which have a different rate.
Second question: Where does the sales tax calculation show up, once it is working? In the shopping card, on the Checkout page, or where?

OK, I don't know what I was thinking. The problem is smaller than I originally posted. We need to collect tax for residents of MN, but not for residents of other states. I'm unclear how to do this. Does anyone have any tips? I can't seem to find a tutorial or help file anywhere about this.

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Sales Tax Collection

Dear Experts,
We are using SD, MM, LE & FI modules in Bangladesh. In customer master we are taking tax Category MWST & Tax Classification "0". Now as per Govt. Tax we need to collect sales Tax BDT 400 per sales order and pay the same to tax authority. Now can you please advice me step by step how can I configure this, so that in every Sales order this charge can come automatically without selecting any item category.
Thanks in advance and your suggestion will be highly appreciated.
Best Regards.
Ripon Kumar Paul

Tax we need to collect sales Tax BDT 400 per sales order and pay the same to tax authority.
Just clarify my understanding, you mean to say, BDT 400 is collected from each sales order, irrespective of net value of the sales order and not dependent on material.
or
Turnover tax at the rate of 4% is leviable where annual turnover is less than BDT 2 million
As I know, the standard tax rate for VAT is 15% for all taxable goods and services.
If in case of former, you can have this tax condition type at header condition.
So, make sure in follow SPRO path you maintain customer data only for the tax condition type
IMG - SD - Basic Functions - Tax determination - Maintain taxes only for customer data(TCode OVK3)
Further you might need to have need routine for Alt Base Value.
The coding for routine can have
xkwert = 400
And even you can have default tax code in the logic.
Make sure you don't have access sequence to the tax condition type.
As already suggested, your condition type should have,
maintain
- Calculation type - B (Fixed amount)
- Condition class B (Prices).
Then assign the newly created routine in Alt base value as per your requirement in pricing procedure.
In case of any concern or doubt, do revert back.
Regards
JP

Sales tax on online orders

I am unclear on the sales tax situation for online orders of iPads.
Will I be charged sales tax if I order an iPad thru the Apple online store?
If online orders are sales tax free why are there so may people lining up at stores to buy iPads (and other products for that matter) which will end up more expensive?

OzLK wrote:
I am unclear on the sales tax situation for online orders of iPads.
Will I be charged sales tax if I order an iPad thru the Apple online store?
If online orders are sales tax free why are there so may people lining up at stores to buy iPads (and other products for that matter) which will end up more expensive?
Whether or not Apple (or any online merchant) collects and remits sales tax depends to a large extent on whether they have a retail presence in the state (in this case, if there are Apple Stores there). Another factor is whether the company does enough online business there that the state chooses to expend the resources to collect sales taxes even without a retail presence -Amazon.com, for instance, collects sales tax for sales in Tennessee because they do tons of business here and because many of their distributors and shippers use warehouses here which Tennessee has indicated a willingness to seize in lieu of the tax dollars. Consequently Amazon caved in and now collects taxes at the time of sale. Apple already has retail stores here so they collected taxes on my order at the time I placed it.

Need to change sales tax from point of sale to point of delivery

Hi all,
Recently the tax laws were changed such that sales tax is to be collected based on where the product will be delivered to (rather then where the product was sold from).
Briefly we are an agency with mulitiple divisions, and within those divisions several sales offices. Previously, a sales would be made from the sales office, and based on the tax rate for that division and sales office (county/city) the sales tax would be calculated.
Now we need to shift that so that a sales can still be made from a division/sales office, but the collected tax is based on where the product will be delivered to.
I'm sure there is a way to set this up, but I'm at a loss as to where to start.
One of teh options the customer suggested was to have a sales area set up with all the cities and tax codes in it. Then assign that sales area to each of the sales offices. Is this possible? Or do you have to have a separate sales area for each sales office?
I'm open to any suggestions you may have as I'm not very familiar with this side of SAP (sales distription and taxes).
Thanks in advance for your thoughts!
Laurie

Thanks Bill. As it turns out, we are in the US where jurisdiction is an option I guess so this procedure may not be needed. As I dig further it appears we are currently setup to use TAXUS procedure which utilizes tax codes - a limited number. But since the recent change, we may need to switch to TAXUSJ.
Does this ring a bell for anyone? If it is what we need to do, what need I be aware of that will change in the rest of the system?
Thanks for your answers so far!
Laurie

Apple iTunes overcharging on sales tax.

I reside in Tennessee where sales tax is 9.25%. I am being charged an extra 2 cents or so in tax on an average album purchase.
Here is the most recent example. I bought Ryan Adam's iTunes Session album at the price of $7.99.
Here's the math:
$7.99 X 1.0925 = $8.729, or, rounded up, $8.73.
iTunes charged me $8.75. Why? It's an extra 2 cents and is an overcharge, no matter the small amount. I've looked at my account and this has happened on every iTunes purchase for at least 5 months. I didn't check back any farther, as obviously something is wrong, unless there is an additional tax I am not aware of.
Can anyone explain this? I don't want to think the worst about Apple, but it's hard not to calculate that 2 cents multiplied by millions is a lot of money. Hopefully, there's another explanation.

I recently noticed the overcharge on Memphis sales tax recently when I bought books as gifts. I contacted customer service and got the "check with your state for the rate" answer. I work in sales tax and know the rate...I have made MANY online purchases that were taxed correctly. It's not that much $$ for one customer, but if you put it all together it would be material. AND if they remit the "correct" amount and COLLECT the "incorrect" amount, which is the way most tax programs work (sales x rate), they may be making a little extra $$ on collecting a few cents on transactions. Frustrating.

Free Goods -Sales tax

Hi,
I am working on Free Goods determination.
The ultimate aim is to capture excise duty and sales tax for materials which is sold as free to customer.
I could able to capture excise duties,whereas it is not charged on customer.
I could able to sales tax,whereas it is t charged on customer.
Only problem i face is for item category TANN ,tax value should be zero (o) means at the time revenue account determination it should not post to customer account .How can i configure it.
I tried with various options but i could not make it.
I thought of generating report keeping in the mind that where ever the condition type R100 >0.01,system should find out the value for sales tax VAT /CST.
Based on that value credit note have to raised for customer.
Here in our case Rs 2.93/- should be issued as credit note.Is there any other alternative option available.
Thanks,
Pradeep M

We are using the below one.
IF komp-PSTYV = 'TANN' OR komp-PSTYV = 'RENN' .
     IF XKOMV-KSCHL = 'JIVP' OR XKOMV-KSCHL = 'ZCES' OR XKOMV-KSCHL = 'JIVC'.
       XKWERT = 0.
     ENDIF.
     IF XKOMV-KSCHL = 'ZBPF' OR XKOMV-KSCHL = 'R100'.
       XKOMV-KSTAT = 'X'.
     ENDIF.
ENDIF.
ZBPF is our basic price
Regards
Jobi

A/R Installment Payments with Sales Taxes and Freight in 1st payment

Our sales dept. wants to offer our customers Installment Payment plans (6, 12, 24 mths) for product sales which is easy enough to set up using Payment Terms and the Installment Payment flag.
But our Accounting Dept wants to collect the Sales Taxes and Freight "up front" in the first payment.
We do not want to use Milestone billing since Accounting wants to recognize the revenue of the sale during the month of the sale ... so a single Invoice to the customer with the Payment Plan printed on the invoice is the option they want done.
I have not been able to find any way to set up the Installment Plan configuration to do such a thing. The Terms of Payment refer to the total Invoice amount.
Has anyone here be able to accomplish such configuration (without doing custom coding in a User Exit)?
Example: $60,000 item, %5,000 tax, $100 frieght = $65,100 total invoice. (6 month payment plan)
   Payment #1 = $15,100
   Payment #2 = $10,000
   Payment #3 = $10,000
   Payment #4 = $10,000
   Payment #5 = $10,000
   Payment #6 = $10,000

I have already set up the installment plan in OBB9 with 6 entries (1 - 6) for my IP Payment Term of IPM1. I have the percentages setup as 16.67 for each of the installments and the last set at 16.65 (equaling 100%).
The problem with Sales Tax and Freight is that you can not simply assign an arbitrary percentage to the 1st installment (for example make the 1st installment 25% and break up the remaining 5 installments fromt he other 75%).
We need to make sure that the first Installment from the customer is for the Sales Tax, the Freight, and exactly 1/6 of the material cost (if it is a 6 month payment plan).
I have activated User Exit EXIT_SAPLV60B_007 to intercept table generation of the installment plan that is sent to Accounting to fix this problem. Now the Accounting document connected with the customer invoice is correct. My next step is to fix the SmartForm print of the Installment Plan on the customer's Invoice.

Conditions in Purchase Order - No scroll bar/Sales Tax value not in mmr

Hello,
I am stuck in a weird problem where I have created a Condition Calculation Schema, assigned it to Schema group and assigned that schema to vendor, but when i open my condition in the PO, it does not give me scroll bar i.e. I have calculation Schema with around 10+ conditions, but when I try to put all the conditions in PO at one time, the scroll bar doesnot come up and without it, I cannot view all my conditions in the PO. Its saving the conditions though as seen in report, but cannot display it in PO without the scroll bar. Any ideas?
Another assignment is that sales tax value and % should not increase the mmr value at time of GR, but when I do GR its adding the sales tax value to mmr value, my requirement is just Gross price be added to mmr, not sales tax value/%. I tried the Statistical checks in Calculation Schema, but to no vail, at GR the sales tax value is being added to the mmr record. Any ideas?
Lots of points awarded for answer/answers.
Any clue will help
Thank you/Afshad
Edited by: Afshad Irani on Jan 14, 2009 10:27 AM
Edited by: Afshad Irani on Jan 14, 2009 2:32 PM
Edited by: Afshad Irani on Jan 15, 2009 6:19 AM

Q Another assignment is that sales tax value and % should not increase the mmr value at time of GR.
Ans:
Dear Afshad,
Reference to your question, you need to do few settings in your Condition Type and Pricing Schema, if you need Sales Tax value & % not to include in your Material value.
1 - In SPRO, Check that in your condition type, Control data 2 tab, Accruals check box should not be selected.
2 - In your Calculation Schema, against your condition types for Sales Tax % and Sales Tax Value, select the check box for Manual & Statistics.
3 - Also in your Calculation Schema, you should not select any account key in AccKey (Account Key) and in Accruals colomns.
If any one of these setting is not defined, the valuation price for your material will be increased due to the fact that your settings for Condition type and Calculation Schema is allowing the same to hit the value of your material directly.
Hope it works for you.
Regards
Jibran

Excise and Sales Tax/VAT related notes.

Hi,,
Can anyone provide me notes on Excise and Sales Tax/ VAT related issues(Pricing Proc/Condition Types/Sceanrios etc) at my mail id [email protected]
Regrds,
Binayak

Hi Pratap,
For free goods you have to pay excise duty, that is why i recommend you to follow a new pricing procedure, where the Price Condition type is statistical(to calculate excise) and give payer as self if the excise duty you would not get from customer,\
1.Create invoice and excise invoice.
2. If you don't want to to hit self(given in document header partner) create proforma and excise invoice
revert if you require any clarrification.
regards.

Decimal conversion of Sales Tax in 'SPARE PARTS SALE INVOICE' ( smart form)

Hello,
I am displaying a the value of the Sales Taxc in 'SPARE PARTS SALE INVOICE'. (in Smart Form)
The field(which holds the Sales Tax value is 'KWERT' -LBBIL_INVOICE-IT_KOND ), with datatype 'CURR', reference table 'KOMK' and reference field 'WAERK'.
In my smart form,i have declared a variable 'SALES_VALUE' of datatype 'KWERT' and reference field 'IT_PRICE-WAERK' (LBBIL_INVOICE-IT_PRICE), where 'WAERK' is the SD document currency.
Now when i display the field 'SALES_VALUE' i get 735.00 , whereas the original value in the field is 73.5
how to correct this and where am i wrong ?
Thankyou for yur time and really appreciate the help.
Shehryar

You are using currency fields that reference a currency code. Most currencies in SAP have two decimal places. Dividing by 100 will work in most cases. Ideally you should get the CURRDEC value in table TCURX for the currency you are working with... then divide by 10 that number of times.
example-
USD, 2 decimals, divide by 10 twice.
There is a function module that will do this for you. Can't think of the name...???

Origin of Sales Tax ID Number in billing document

Hi
In the billing Header, Taxes, there is a field "Origin of Sales Tax ID Number". Can you pls. guide me what is the mean of this field and how the value for that particular field is detemined.
with regards

Hi Lin
The field "Origin sls.tax no." actually indicates that from where the VAT registration no. in Billing Document is coming. If you check the F4 help of this field then you will find that there are different option like - from Ship to party, Payer or Sold to Party etc. The determination rule is maintained in customising at IMG> Sales and Distribution>Basic Functions -->Taxes -->Maintain Sales Tax Identification No. Determination.
Hope this will clear your doubt.
Regards
Amitesh Anand

Origin of sales tax ID number in billing documents

Hello,
The field "Origin of sales tax ID number" in billing documents determines from where the tax ID number is taken, for example:
   A - Ship-to party
   B - Payer
   C - Sold to Party
When the partner functions of the customer are different, how can I decide whose tax ID number the billing document takes? I need to take the tax ID of the payer but it takes of the ship to party.
Thanks in advance, best regards,
Silvia

hi,
The path here is IMG, Sales and distribution, Basic functions, Taxes, Maintain sales
taxIdentification number determination.
Three available options can be assigned to each sales organization. It is recommended that in order to keep consistency throughout the system, use the same determining rules across all sales organizations.
The first is determination rule A, which indicates that the tax number and tax indicator classification are generally taken from the sold-to party customer master record.
Determination rule B indicates that the tax number and tax classification are generally taken from the customer master record of the payer.
Finally, if the field is left blank, the system determines the tax number and the tax classification according to the following sequence:
1.If the payer has a VAT registration number and is identical to the sold-to party, the tax number and tax classification are copied from the payer (in this case, the ship-to party is not relevant). The tax number is copied according to the country of destination relevant for taxes.
2. If 1 does not apply, the ship-to party has a VAT registration number, and the sold-to party does not, the tax number and tax classification are copied from the ship-to party.
3. If 2 does not apply, the tax number and tax classification are copied from the sold-to party.
CHAN

Customization for Origin of sales tax ID number

hello,
I am trying to understand how Tax is being determined according to the field "Origin of sales tax ID number" which get to the sales order and Billing document.
I have a situation where the value of this field in the Billing doc is different then the Order and it is has different options. sometimes "sold-to" sometimes "ship-to".
Which customization affect the value of this field in the Billing document?
Regards,
Tomer Zimmerman

Hi Tommer,
Check the path: spro-sd-basic func---taxesmaintain sales tax ident no.
This field is used to control determination of the VAT registration number in the order and the billing document.
It is linked to determination of the tax classification.
If BLANK is set, then the standard prioirty ruls apply, as follows:
1. If PY has a VAT ID no. and PY <> SP, then the tax number and tax classification are taken from PY (the SH is no longer relevant).
The tax number is taken according to the 'tax country of destination'.
2. If 1 does not apply:
If SH has a VAT ID no. or SP has NO VAT ID no., then the tax number and the tax classification are taken from SH.
3. If 2 does not apply:
Tax number and tax classification are taken from the sold-to party.
If 'A' is set, then the tax number and the tax classification are generally taken from the sold-to party.
The tax number is taken according to the 'tax country of destination'.
If 'B' is set, then the tax number and the tax classification are generally taken from the payer.
The tax number is taken according to the 'tax country of destination'
Reward points if it helps.
Regards
Karan

Calculation of surcharge on sales tax

hello everyone
how do we calculate SC on sales tax amount
base amount                         100
sales tax say 10%                  10
surcharge say 2% on 10          2
amount to be collected           112

HI,
Calculation of Surcharge use the conditionstype (JIP4)
Reg
Madhu M

Discount After Excise & Sales Tax

I have one scenario
Vendor will give Discount, For which excise & sales tax will not be calculated.
To fullfill this scenario where i have to put discount condition in pricing

Hi Mr. Satya,
For this scenario give the define the new discount condition type and assign at the end of the MM pricing procedure. In the discount condition give the subtotal as 6. This will solves your problem.
Regards
Satya

Where to collect sales tax?

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