Issue with Canada Input tax Codes GST PST HST

[rahul_khanna3]

Greetings Gurus,

I have the following issue w.r.t setting up input taxes in Canada and I am looking for some help.

I have already researched a lot in the forums/threads and my situation is unique so please do not critise saying I should look through the existing threads as I have already done that.

I am suppose to configure Input (A/P) tax codes for Canada for the following providences and the rates are also undermentioned.

Description	Name	GST	PST	HST
Yukon Territory	YT	5.00%
Northwest Territories	NT	5.00%
Nunavut	NU	5.00%
British Columbia	BC	5.00%	7.00 %
Alberta	AB	5.00%
Saskatchewan	SK	5.00%	5.00 %
Manitoba	MB	5.00%	7.00 %
Ontario	ON			13.00%
Quebec	QC	5.00 %	9.98 %
Newfoundland	NL			13.00 %
Prince Edward Island	PE			14.00 %
Nova Scotia	NS			15.00 %
New Brunswick	NB			13.00 %

Following are the tax codes that I configured:

GJ           A/P, GST applicable, PST exempt

HJ           Input Tax HST Only

IJ             A/P, GST applicable, PST applicable

PJ            A/P, GST exempt, PST applicable

SJ            A/P, Self assess GST and PST

The way I have configured these in the system is that since GST is federal tax, I have put the following percentages :

CA00:  5 %  ( Since this is configured at federal level so it appears for both GJ, IJ )

Eg: CAYK: This gets its GST value from CA00 ( which is correct) ( VST: 5 %)

Eg: CABC: VST: 5 % (GST) and NVV 7 % (PST)

Eg: CAON: Since this has only HST taxes, I configured 13 % Flat for Acc Key VSH

Now the problem that I am facing is that if user selects the correct tax code for the above providences, its all good BUT if a user selects tax code GJ by mistake for Ontario instead of HJ, it gets 5 % because GJ is set up at federal level which is incorrect because for Ontario there is only HST taxes.

Similarly if a user selects a tax code for example IJ for New Brunswick ( CANB), system gets 5 % tax rate but it shouldn’t because CANB has only HST taxes. But because CA00 is set up as 5 % , system retrieves that rate for these region as well.

Please help me with your expertise with the solution for the above issue wherein I am trying to figure out how to either configure the system in a way that it gives me error if a user selects a wrong tax code for a given providence or if it is possible to restrict users to only select the correct tax code for these jurisdictions

I really appreciate your time and help.

Rgds

Rahul

[Former Member · Accepted solution]

HI Rahul Khanna,

The easiest way as per understanding is to use Substitution OBBH or validation through - GGB0 In pre-requisite BSEG-MWSKZ = "Tax Code" Substitute:

You can use user exit and ask your ABAper to write a small code that pick WERKS from BSEG and if WERKS =1000 (for ex.) then move BSEG-HKONTH by your tax GL.

We can use Validation ..tax code restriction for user wise,PLease check ABAper and he will give solution...Provide infomration to ABAper..which T.code user using for assigning the tax codes at transactional level,country fileds and Gl Vs Tax codes. and also check user exist available or not.

Thank you

Regards

asuvamsi

[rahul_khanna3 · Accepted solution]

Hello Svamsi

Thanks you for your reply. I really appreciate it. I agree that we can restrict the users in such situations by using a validation or substitution. However, I am wondering if this can be achieved by standard configuration. I am sure there is a solution for this by creating tax codes or by using account keys in a different way.

Any inputs ?

Thanks.