There could be some material on the above topic on this site but I have my own questions as follows.
The Material tax classification and customer tax classification is defined in material/customer master. My questions are:-
1a) If we have defined only one tax classification indicator in material master and customer master. Why in sales order we have at item level two fields(taxm1 and taxm2) for material tax calissification (item level- billing doc tab) .what is the purpose? where the data is copied into these fields ? I think the data from material master is copied into this first field ? what about the 2nd field ??
1b) Similarly at header level of sales order , we have two fields for customer tax classification ? why ? Can we change it manually.
2) can we maintain in material master three tax classfication indicators(let's say 1,2,3 ) for the same country and same tax category. if yes, then how can all the material tax classification indicators as above will be copied into sales orders and how the condition records for tax conditon type will be found ?
3) In one of our sales order, the material tax classification at item level are 1 and 2 (taxm1, taxm2). But in the material master the tax classifcation is only 2. There is no manual changes in sales order. Then how come system has not copied tax classifcation 2 in the first TAXM1 field ?
I do not have the test system to test. So would request colleagues to advice.