Skip to Content
avatar image
Former Member

Quiz about tax classification

Hi, experts,

There is a problem about tax classification that need ur help..

In billing document, there are 2 tax classification, one is <u>TaxClass1-Cust</u> at header , another one is <u>Tax class. mat.</u> at item level, normally, there will only have 1 number on these two tax classification.

But I found in one of our billing document, there are 2 numbers in <u>Tax class. mat.</u>, is anyone know why and what's the impact regarding this?

Thanks for ur kindly help in advance!

Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

3 Answers

  • Best Answer
    Nov 27, 2007 at 02:13 PM

    Hi Ygwendolyn

    If I understood your question correctly, you are asking in sale order, under the item level billing tab, a field "Tax classific" will be there and here why two numbers are flowing.

    Do you mean to say that our of 4 fields, for one particular item, two numerics are flowing in these 4 fields, say for example, instead of 1, 1, 1, 1 it is flowing 1, 2, 2, 1.

    If so, you need to check in material master Sales: sales org.1 view what tax codes you have maintained for the said material.

    Thanks

    G. Lakshmipathi

    Add comment
    10|10000 characters needed characters exceeded

    • Former Member

      Hi, Lakshmipathi,

      Thanks for your reply, ur undersanding is correct, however, it's a little bit speicial in this case, this billing doc is not linked to a sales order, as it's a monthly service charge, so we use the contract function in SAP, and set up a service contract to trigger this monthly service charge. And there is only 1 tax classification number in item level..

      So I have no idea of what's wrong with it...:(

  • avatar image
    Former Member
    Nov 27, 2007 at 01:58 PM

    no one knows??

    Add comment
    10|10000 characters needed characters exceeded

  • avatar image
    Former Member
    Nov 27, 2007 at 02:16 PM

    hi,

    Tax is determined based on

    1) organizational structure, country, region, or city of delivering plants and

    2) country or receiving customer

    3) combination with tax relevancy indicators on the customer and material master records.

    check this

    Customer Taxes Material Taxes Rate Taxes

    0 0 0 %

    0 1 0 %

    1 0 0 %

    1 1 9 %

    In this example, if both the Customer Master and Material Master Tax code is 1, Tax will be included when you create the Sales Order.

    CHAN

    Message was edited by:

    CHAN HARI

    Add comment
    10|10000 characters needed characters exceeded