Taxes in Sales

[Former Member]

Hi all,

we have a process where we have to use VAT 4% on Line item 1 & 2 and VAT 12.50% on Line item 3 & 4 , here we are using Tax calculation through Tax Code i maintain tax % condition record with combination of CountryPlant RegionCustomer region if i maintain 4% with one combination then system is not allow me to maintain 12.50 for the same. please help me how can i put two taxes in single invoice.

Regards

Vivek K. Sharma

[Lakshmipathi · Accepted solution]

Of course, you can maintain a different tax at line item level, you cannot club all those into one billing document.

To achieve this, do the following:-

1) Create two tax codes for 4% and 12.50% in FTXP

2) In VK11, for your tax condition type, assign these tax codes by differentiating for material tax classification, say 1 & 2

3) Now in sale order, by default, system will fetch a tax code for the one which you assigned in material master. Change this to the one what you want by double clicking "Billing Document" tab at item level in sale order. Go to condition tab and check how tax is flowing for both the items.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Thanks Laxmipati for replying , here have some query related to your valuable answer

1. if we pass 2 different taxes at item level according to u we can not club in single billing document means we have to create two bills for both the line item?

2. we have two tax classification assigned in material code is 0 tax exempt 1 for full tax i maintain 1 for VAT here should i create another tax classification?

3. how can i maintain tax classification in VK11 and how it is related with material code ?

Please help me to resolve this issue thanks and regard in advance

VIVEK

[Former Member · Accepted solution]

Hi Vivek,

tax in SD is typically determined as follows:

(1) Tax Classification for Material

This is to distinguish between 4% and 12.5% for a material.

You can see the classifications in transaction OVK4 (under MWST).

This has to be maintained in the material master record or (at the latest) on the invoice line item.

(2) Tax codes

Tax codes should be maintained for 4% and 12.5% in TA FTXP.

(3) Condition record MWST has to be maintained

(VK11 create, VK12 change)

Typically for combination "Domestic taxes" you maintain an entry like:

TaxClassCustomer = 1 (liable) - TaxClassMat = e.g. 1 (full) - Tax code A1 = 12.5% or TaxClassMat = 2 (half) - Tax code A2 = 4%

(4) Invoice transfer to FI

When the invoice with the various line items/tax codes is transferred to FI, the FI document will have two line items - one for each tax code.

Hope this helps.

Cheers,

Dirk

[Former Member]

HI..

You can extend the your key combination at Material level..

Regards

SDB