Incorrect Tax determination

[Former Member]

Hi,

I have a question about the tax classification code on header vs. item. Initially all items have same tax classification code as the header but then I change the ship-to for one of the line items and that changes the tax classification code (VBAP-TAXM1) on that item. Should it change the value of header VBAK-TAXK1 as well? Please advise.

Also I have some custom code for tax rule in the Move field to VBAK and Move field to VBAP user exits. Is that the right place for manipulating tax rules or should we do it in pricing prepare TKOMK and pricing prepare TKOMP user exits?

[Former Member · Accepted solution]

Hello Carrie

TAXK1 which is at Header level signifies Customer Tax classification and TAXM1 which is at Item level is for material tax class.

I am wondering why would material (item) tax classification change when you change the Ship-to. Do you have any user exits in place? On the contrary, it should change the customer tax class for the document. You should not see this change getting populated in TAXK1 because I don't think VBAK- TAXK1-9 hold any values unless you manually changed them.

Also Alt. Tax class is a facility ( hence the name 'Alt') to manually change customer tax class in the Sales or Billing document (while creating using VF01) and drive the customer, material tax class combo to a new tax code and I don't think it should change if you change TAXM1.

[Former Member]

How to configure the tax determination? Tax 1 already maintained in Customer master but when I input the customer code both on sold to party and ship to party, vbak-tax is still blank. no variant exists for my sales orders. Kindly help me or replly with my thread

[Former Member]

Tax is calculated as per shipto party settings for tax classification.

Logic in move_field_to_vbap looks relevant for tax purpose. So you should be all set.

Regards

Sai

[Former Member]

But my question is that should class on line item affect tax class on header? So lets say I have a order with VBAK-TAXK1 = 0 and VBAP-TAXM1 for all items = 0. Now I change the ship to on one of the lines to one-time ship to and VBAP-TAXM1 becomes 1 for this item. Should VBAK-TAXK1 also change to 1 at header?

[Former Member]

Hello Carrie

TAXK1 which is at Header level signifies Customer Tax classification and TAXM1 which is at Item level is for material tax class.

I am wondering why would material (item) tax classification change when you change the Ship-to. Do you have any user exits in place? On the contrary, it should change the customer tax class for the document. You should not see this change getting populated in TAXK1 because I don't think VBAK- TAXK1-9 hold any values unless you manually changed them.

Also Alt. Tax class is a facility ( hence the name 'Alt') to manually change customer tax class in the Sales or Billing document (while creating using VF01) and drive the customer, material tax class combo to a new tax code and I don't think it should change if you change TAXM1.

[Former Member]

Hello Carrie

TAXK1 which is at Header level signifies Customer Tax classification and TAXM1 which is at Item level is for material tax class.

I am wondering why would material (item) tax classification change when you change the Ship-to. Do you have any user exits in place? On the contrary, it should change the customer tax class for the document. You should not see this change getting populated in TAXK1 because I don't think VBAK- TAXK1-9 hold any values unless you manually changed them.

Also Alt. Tax class is a facility ( hence the name 'Alt') to manually change customer tax class in the Sales or Billing document (while creating using VF01) and drive the customer, material tax class combo to a new tax code and I don't think it should change if you change TAXM1.

[Former Member]

Hello Carrie

TAXK1 which is at Header level signifies Customer Tax classification and TAXM1 which is at Item level is for material tax class.

I am wondering why would material (item) tax classification change when you change the Ship-to. Do you have any user exits in place? On the contrary, it should change the customer tax class for the document. You should not see this change getting populated in TAXK1 because I don't think VBAK- TAXK1-9 hold any values unless you manually changed them.

Also Alt. Tax class is a facility ( hence the name 'Alt') to manually change customer tax class in the Sales or Billing document (while creating using VF01) and drive the customer, material tax class combo to a new tax code and I don't think it should change if you change TAXM1.

[Former Member]

Hello Carrie

TAXK1 which is at Header level signifies Customer Tax classification and TAXM1 which is at Item level is for material tax class.

I am wondering why would material (item) tax classification change when you change the Ship-to. Do you have any user exits in place? On the contrary, it should change the customer tax class for the document. You should not see this change getting populated in TAXK1 because I don't think VBAK- TAXK1-9 hold any values unless you manually changed them.

Also Alt. Tax class is a facility ( hence the name 'Alt') to manually change customer tax class in the Sales or Billing document (while creating using VF01) and drive the customer, material tax class combo to a new tax code and I don't think it should change if you change TAXM1.

[Former Member]

Please ignore the multiple posts which happened due to a tech hitch. Pardon the repetition.