Material Master - Tax Indicator

[Former Member]

Hi Guru,

can someone advise if the usage of tax indicator in material master is to default the tax code in the purchase order? If yes, kindly advise the steps to default the tax indicator.

Thanks.

Regards,

new@SAP

[Former Member · Accepted solution]

Hi

The usage of Tax indicator is for calculation of the Tax amount it is not for defualting the Tax code.

If in the material master you have mainatined the tax indicator for a condition type as 50 % & in the tax code the tax rate in the condition type is 16 % . then in the PO it will calculate as 8% for that material.

You can defulat tax codes by mainatining the condition records (MEK1) & through Purcahse infor records only.

Thanks & regards

Kishore

[Former Member]

A tax code can be set as default in purchasing info record T.code ME11.

Vivek