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Former Member

Tax code in SD

Hi

since i maintian Tax Code in ftxp for input and output tax for eg in purchase i've to maintain TAX code and this tax code is assigned to Tax procedure which i assign to pricing procedure

now my question : in SD where we define pricing procedure where i maintain my tax conditon type and the it gives the tax values so what is the point of having TAX code for SD

Vinz

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4 Answers

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    Former Member
    Jan 13, 2010 at 07:07 AM

    Hi

    If you are using TAXINN procedure then for SD

    Tax rates are picked from the relevant tax condition type's condition records

    But The GL account is picked from the GL account mentioned in the relevant tax code in FTXP settings

    say your Tax account key is MWS

    In VKOA if you maintain For MWS ( + others ) the account is say 179601

    and in FTXP for the relevant tax code GL account is 179602

    Then the value is posted to 179602 not in the GL account of VKOA

    So TAX code plays a vital role in picking up the tax GL accounts for tax value postings

    Regards

    Raja

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    • Former Member Former Member

      Hi

      If you are in TAXINN procedure

      The GL account is taken from TAX code

      Does tax code serve only this purpose?

      I dont know

      Tax code might have a lot of other features and advantages that an FI consultant will be able to expalin you better

      Note In FTXP against a tax code there is a provision to mainatin TAX rates

      But system will not take it

      For TAXINN procedure tax rates will be taken from tax condition records maintained in VK11 not here

      If for a particular tax condition type if you maintain rate as 4% in VK11 in a tax code

      The same tax code in FTXP against that condition type or account key if you maintain rate as 6%

      4 % record will be considered

      The 6% record itselt will vanish when you save it ( it will not be displayed at all system will erase it)

      But all these are for TAXINN procedure

      If TAXINJ is used story is different

      Regards

      Raja

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    Former Member
    Jan 13, 2010 at 06:58 AM

    Hi,

    Tax procedure is defined in Finance,

    You can define your pricing procedure, in that u speciefy your TAX condition type,

    Now in sd u can define tax categories & tax clssification - t-codes OVK3 & OVK4,

    Maintain tax clssification in Customer master & in material master,

    Now maintain TAX code in FTXP.

    Then in condition record - VK11

    Put customer & material tax classification,also put tax code & enter sytem will drag tax value in condition record,save it

    Kapil

    Edited by: Kapildev Farakte on Jan 13, 2010 7:59 AM

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    • Dear,

      In FTXP you need to maintain follwing entries,

      Tax code name : xy( for exp) Press Enter

      under Properties, in front of xy-- its discription like CST 1% with C Form

      Tax Type : input/output ( any of it as per requirement)

      check: Activate and press Enter

      and MAINTAIN % against required condition types

      and finally assign Condition Types to G/L Account in Tcode: VKOA against Account key for Condition type

      Regards

      AJIT K SINGH

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    Former Member
    Jan 13, 2010 at 07:01 AM

    Hi,

    Taxes in SD will be an saperate configuration, it is not related to other module as you mantioned MM. We can't use the same MM settings, as from SD point of view the tax determination has changes for outgoing shipments.

    Define Tax condition type - V/06.

    Following are the important link related to Taxes in SD:-

    Financial Accounting - Financial Accounting Global Settings - Tax on Sales/Purchase - Basic Settings.

    Check Calculation Procedure - OBYZ,

    Assign Country to Calculation Procedure - OBBG,

    Define Tax Juridisctions - OBCP

    TAX code - FTXP.

    Under Sales and Distribution - Basic Functions - Taxes, you can define Tax determination rules.

    Define Tax Determination Rule - OVK1

    Maintain tax clssification for Customer master (OVK3) & in Material master (OVK4),

    regards

    Vivek.

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    Former Member
    Jan 13, 2010 at 07:04 AM

    Hi,

    TAX CODES are mandatory to define in SD also as we will maintain

    1. TAX RATE

    2. TYPE OF TAX whether it is Input or Output tax

    3. CALCULATION PROCEDURE ( percentage or fixed amount)

    Based on the above three settings in the TAX CODE , we can define whether a customer is liable or not from the tax, or material is liable or not from tax.

    regards,

    santosh

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