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Tax indictor for material

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Tax indicator for material (Purchasing)

This field is available in Material master Purchasing view. what is the use of this field and how to use or utilise it (in which scenario)

Regards

sapman man

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2 Answers

  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on Sep 23, 2009 at 11:01 AM

    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.

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  • author's profile photo Former Member
    Former Member
    Posted on Sep 23, 2009 at 10:56 AM

    Hi,

    The tax indicator is used in the automatic determination of the tax code in Purchasing.

    The tax code can be determined automatically within the framework of price determination (via the conditions).

    Tax indicators are used to facilitate this process. They can be derived from the material master record, Customizing, or the purchasing document. The system determines the tax code from the combination of these tax indicators.

    Example

    Automatic determination of the tax code is useful, for example, if different tax rates apply depending on whether a material is placed in stock or consumed directly.

    Dependencies

    If the tax code can be determined automatically via conditions, it takes precedence over the tax code that has been maintained in the purchasing info record.

    Cheers!!!

    UTSAV

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