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Former Member

Tax Determination procedure for Customer

Dear All

We have requirement form customer that customer tax classification needs to pick in case of tax determination procedure needs to pick from different partners

If the product type is GOODS

Tax Classification needs to pick from Ship to party

If the product type is SERVICES

Tax classification needs to pick from sold to party.

Can you please advise how can i achieve this?

Currently we have the following determination is happening

SAP functionality and logic has been confirmed through testing. This concurs with the standard SAP design.

  • A tax classification code is held on Ship to and Sold to.

Where there is no VAT registration number held on either of these partners, SAP will use the tax code held in Ship to, to calculate tax.

  • Where a VAT registration number is held on the Ship to, SAP will continue to use the value held in Ship to, for the tax calculation and show the customers VAT reg number on VAT output

Only where a VAT registration number is held on the Sold to, will SAP use the Sold to partner tax code to generate the tax calculation

Thanks

Sri

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1 Answer

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    Former Member
    Apr 05, 2016 at 02:28 PM

    This message was moderated.

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