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Tax Conditions config for USA Use Tax scenario

Hi All

Have an issue with determining a Tax code for Purchase orders in USA. We use Vertex for Tax rate determination, but also need to derive a different tax code for USE Tax. This is tax that is accrued and not remitted to vendor. This is applicable when purchase is interstate. Vendor supplies from another state.

As this must be very common scenario, I am wondering how people typically do it?

I have looked at Std Condition table A088 (Matl/Plant/Acct Assign/Origin/Region) but am struggling on how to determine nicely that the vendor is in another state.

I guess at this stage I need a Condition Record for every state (Region), other than the one my plant is in?

Hope someone has some experience with this issue.

best regards

AC

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  • Posted on Dec 09, 2011 at 07:54 AM

    Hi Charlie,

    Have you tried to define and use the Tax Code to calculate the USE Tax? If it isn't remitted to vendor(Non Deductible) then hope it is going on material? I hope you should be using one of the Tax Calculation Procedure that suits US type viz TAXBRA or you can copy a suitable one. You will have to look in for an acces sequence such as the one you mentioned. If there are too many different rates per state, then you will have to define codes for each of them (thats the standard procedure) and use them in your PO. In the calculation procedure you will have to chose the condition types to define your required tax rates and maintain condition records.

    Pls check and revert if need be...

    Regards

    Shiva

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