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Output Tax for tax exempted materials also picking

HI All...

I have an output tax(VAT - 5%) which is charged to the client. but there are some materials which are exempted from this VAT.

I have done the following config :

1) Tax liability of Material & Customer as "NO TAX" & "FULL TAX" maintained.

2) All the assignments done and tax is triggering properly for tax liable materials.

3) In tax exempted material i have kept VAT as "NO TAX" and in VK11 for this combination maintained tax percentage as 1%(as system was not taking 0%). I am using the std MWST access sequence and using the 2nd access - Domestic taxes. In this i have maintained both the combination i;e Customer tax - Full + Material Tax - Full = 5% , Customer Tax - Full + Material Tax - Zero = 1%.

Now while creating Sales order for this tax exempted material system is picking 5% for this VAT condition type.

Then i went to FTXP and changed VAT over there from 5% to 0%. still system picking 5%, when i saw pricing analysis it is showing that it is taking the value from : Customer tax - Full + Material Tax - Full = 5%.

Kindly suggest what i need to do for Tax exempted materials to pick 0% or not visible in that order only.

Thanks in advance.

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2 Answers

  • Posted on Oct 11, 2010 at 02:18 PM

    Have you maintained "0%" to your output tax condition type in OVK3 ???

    thanks

    G. Lakshmipathi

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  • Posted on Oct 12, 2010 at 07:53 AM

    In fact, you should not maintain any percentage in VK11 / MWST. It should be only 100% there.

    All percentages (5%, 2%) should be maintained in FTXP for your tax code and this code only, you need to assign in VK11/MWST.

    As you indicated, for Domestic Tax, the combination would be

    a) Origin Country

    b) Valid on

    c) Valid To

    d) Customer Tax Classification

    e) Material Tax Classification

    f) Amount (should be 100)

    g) Tax Code

    and in your case, you need to just assign two different tax codes by differentiating either the customer tax classification or material tax classification.

    thanks

    G. Lakshmipathi

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    • Former Member Former Member

      Hi,

      I found the reason why for VAT condition record :- Customer -Full Tax, Material - Full Tax is taking. It is because i have 1 more tax type (Turnover Tax)before it and for that this condition record is applicable.

      Now can you please tell me how can i trigger the values from both the condition records with different combinations i;e for Turnover tax - it should use condition record from : Customer -Full Tax, Material - Full Tax and

      for VAT - it should use condition record from Customer - Full Tax, Material - NO Tax.

      Thanks,

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