Skip to Content
avatar image
Former Member

Tax Exemption for a Contract Account

Dear Experts,

A tax is raised during invoicing of electricity bill for all Contract Accounts. I have a requirement where I have to exempt tax for some Contract Accounts. The tax code has been defined in IMG in Financial Accounting.

When inputting the Tax Code in CAA2 in the Tax Exemption grid, I get the error message - 'Enter a valid tax procedure' .

Have I missed a Config?

Kindly advise

Malini

Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

4 Answers

  • avatar image
    Former Member
    Mar 23, 2011 at 05:30 AM

    Hi Malini,

    Probably you have missed some settings for tax procedure or you have not assigned it in SPRO. Do so in the below mentioned path :

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

    Regards,

    Richa Tyagi

    Edited by: Richa Tyagi on Mar 23, 2011 6:30 AM

    Add comment
    10|10000 characters needed characters exceeded

  • avatar image
    Former Member
    Mar 23, 2011 at 05:56 AM

    Dear Richa,

    Find below the configuration done:

    1) Financial Acctg >>Fin Acctg Global Settings >> Tax on Sales/Purchases >> Calculation >> Define Tax codes for sales/Purchases>> Define Tax code

    2) Financial Acctg >>Fin Acctg Global Settings >> Tax on Sales/Purchases >>Basic Settings >> Check Calc Proc >>

    (a)Define Cond type (b) Define Proc

    3) Financial Acctg >>Fin Acctg Global Settings >> Tax on Sales/Purchases >>Basic Settings >> Check & Change settings for Tax Proc

    4) Financial Acctg >>Fin Acctg Global Settings >> Tax on Sales/Purchases >> Postings >> Define Tax Acc

    5) Financial Acctg >> Contract Acc Receivable & Payable >> Basic Functions >> Doc >> Maintan Doc Assignment >> Maitain Transanction for ISU/IST > Define Acc Assignment for Auto Posting >> Auto GL Acc Determination >> ISU Define Acc Assignement Data Relevant to Transaction

    6) Financial Acctg >> Contract Acc Receivable & Payable >> Basic Functions >> Postg & Doc >> Doc >> Define Acc Assign >> Auto GL Determination >> Define Acc for Sales & Purchases Tax

    7) Financial Acctg >> Contract Acc Receivable & Payable >> Basic Functions >> Postg & Doc >> Doc >> Maintain Doc Assign >> Define Sales/Purchases Tax Determination

    Have I missed something?

    Add comment
    10|10000 characters needed characters exceeded

  • avatar image
    Former Member
    Mar 23, 2011 at 06:34 AM

    Dear All,

    Can an 'Event' be used to use a zero-rated tax code for the Contract Accounts to be exempted from tax

    Thanks for a reply

    Malini

    Add comment
    10|10000 characters needed characters exceeded

    • Former Member Former Member

      Hi Malini,

      This error occurs because of the following reasons:-

      1) Either you are using more i tax calculation procedure or

      2) You have not assigned the sales tax code to the proper calculation procedure which you need to use.

      Try assigning the sales tax exemption code to the proper Tax calculation procedure.

      Regards,

      Richa Tyagi

  • avatar image
    Former Member
    Mar 25, 2011 at 06:42 AM

    Thanks for the tips Richa,

    All the configs have been done - cal procedure assigned to country code etc.

    We have eventually used an Event to check a flag and then assign a '0%' tax code to billing line items

    Rgds

    Malini

    Add comment
    10|10000 characters needed characters exceeded