Sales Area Tax Classification in Customer Master Data

[Former Member]

Good day,

We have one customer that is extended to two company codes (thus we have two sales areas as well). when we maintain the "Tax Classification" field for the one sales area to be exempted from taxes the system automatically updates the other sales area with the same value.

However, the one company code is liable for VAT and the other one is exempted from VAT.

Can you please advise us with how we can achieve this using a single customer master record for both company codes?

Thanks and regards,

Andro

[Sai_Kasturi · Accepted solution]

Hi Andro,

I have moved your question to Sales LoB as its related to Sales area tax classification in BP.

A plant assigned to a combination of sales org + distribution channel in configuration (SSCUI 102287) drives the taxation for a sales area. The taxes are based on whichever country the plant is located in.

For example, if Plant 0004 is assigned to Sales Org 1 and is located in CA, then all customers in Sales Org 1 must enter a tax classification for that customer in regards to country CA.

Please double check the configuration you have maintained to understand the current system behavior in this case.

Thanks

Sai

[hibruce]

Hello Andro.

I face the exact same issue.

Did you manage to fix it?

Anyone with it's solution please advise.

Thank you.

[Sai_Kasturi]

Hello Andro,

Can you please confirm if you were able to gather required inputs from the responses provided so far? If Yes, please mark the best answer to the appropriate response.

Thanks for your time and reaching out to the Cloud Customer Community.

Thanks

Sai

[MarNow]

Hi Andro,

This seems like Sales LoB topic. I have asked Sales community to have a look at your question.

By the way I just checked and the system behaviour is the same in other S4HC system. Just to let you know this is not specific to your system only.

Regards,

Marcin

[MarNow]

...while we are waiting for possible more complete feedback from Sales LoB ...

Tax classification that you see under sales area data of BP master data is customizable on country level and not individual sales area. Field 'tax classification' TAXKD is stored in table KNVI. Sales are is not in the table key of KNVI.

You will see additional raw in the 'Output tax' table is BP master data app only if you add sales area that is associated with additional country. System stores this information per country and not sales area.

Regards,

Marcin