Skip to Content

Need to configure automatic income tax on different purchase orders

Hi,

Here I attached the screenshot of different purchase orders range. we need to configure automatic income tax impose on different purchase orders.

for E.g;

PO range of 42 should automatically deduct 16% income tax

PO range of 43 should automatically deduct 15% income tax

PO range of 41 should automatically deduct 8% income tax.

I need to know configuration process, how to automate the income tax against different sequences of PO's.

Thanks

po-doc-type.png (26.3 kB)
Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

3 Answers

  • Best Answer
    avatar image
    Former Member
    Feb 22 at 04:12 PM

    Tax calculated based on how material or service behaves to business upon the procurement process. Different PO document types along with different PO number ranges are used to differentiate between different procurement processes.

    For your requirement 16%,15% and 8% deduct tax rates*- you can configure tax procedure along with tax condition types* (OBYZ) and to make tax deduct in nature(OBCN and assign G/L account to accounting key-OB40)- you can use accounting key for those purpose. Have tax condition record(FV11) and create tax codes(FTXP). Based on tax rate maintained- your PO will have those tax calculation.

    Add comment
    10|10000 characters needed characters exceeded

  • Feb 21 at 05:52 AM

    I have never heard that taxes are depending on number ranges. Why do you at all refer to the number range, you could more easier say document type? And even a document type as basis for tax would be a very vague basis and very much be user driven based on the selection he made. Is there nothing else as a hard fact on which it can be determined that tax has to be included?

    About what country and tax are you talking (use the local name): Income Tax is a tax you pay on your earnings. A tax that governments impose on financial income generated by all entities within their jurisdiction. By law, businesses and individuals must file an income tax return every year to determine whether they owe any taxes or are eligible for a tax refund.

    What do you earn with an individual purchase process?

    Add comment
    10|10000 characters needed characters exceeded

    • Jürgen L Syed Muhammad Abbas

      Just imagine, someone who is telling you that the turn signal on your cars rear site is broken is not necessarily the person who is able to repair it.

      But now, with the correct information, there might be others who can step in.

      Had you already searched for this information, I just did with Google

      using search terms like:

      withholding tax customizing site:sap.com

      withholding tax purchase order site:sap.com

      and found wikis, and blogs and help.sap.com documentation and question with answers

      I am still the opinion that purchase order number ranges have nothing to do with WHT.

  • Feb 21 at 05:44 PM

    Hi,

    As Jurgen already mentioned, its not income tax, its tax on purchase.

    Based on the above explanation, it seems you can have the tax based on PO document type. You may check below options:

    • Create different tax codes based on the tax percentage and maintain tax percentage at tax classification level (A003 table in access sequence). In this case, you may default the tax code in PO based on PO doc type with an append structure to KOMKAZ and through the access method explained in the doc:https://blogs.sap.com/2013/12/21/defaulting-tax-code-in-po-condition-technique/
    • Maintain single tax code and maintain the tax percentage based on document type - In this case, you need to append the KOMK structure to pull the PO document type in tax pricing level. After that you may maintain different % at PO doc type level in FV11. Default the tax code in PO based on the doc mentioned above.

    Regards,

    Prasoon

    Add comment
    10|10000 characters needed characters exceeded