Countries for tax classification in material master-sales org 1 tab

[Former Member]

Hi All,

When we create a material master for a plant and sales org, the system asks for mandatory tax classification data. so we enter tax classification against various countries in the tax data screen in sales org 1 tab in material master.

I have following questions.

1) I need to know how the countries  appear on the screen for the tax classification data ( under tax data in sales org -1 tab )? Any config . How is it decided that which country appears in the tax data in sales org 1 tab ?

2) one of my material number X  is maintained for sales org 3000 and plant 3000 and the tax classification data is maintained for countries like   belgium,switzerland, china, denmark, france, britain but countries like Japan, austria appear on the TAX data screen but without any tax classification  indicator maintained for Japan, austria.

Now when I extend my above material X to new sales org 4000 and new plant 4000, the system mandatorily asks for tax classifcation data for Japan, austria plus system asks for tax classification data for some new countries like Indonesia ? 

2 a ) I need to why this is so when for sales org/plant=3000, we do not have tax classification data  maintained for Japan/austria but while extending it to new sales org/plant=4000 , the system asks for tax classification data for Japan , Austria ?

2b) I also need to know when above material is extended to new sales org/p-plant=4000, the system brings in a new country Indonesia for the first time and mandatorily asks for tax indicator for the same ? why so ?

regards

Pamela

[bsivasankarreddy_reddy · Accepted solution]

hi

1) I need to know how the countries  appear on the screen for the tax classification data ( under tax data in sales org -1 tab )? Any config . How is it decided that which country appears in the tax data in sales org 1 tab ?

ans)  tax classification procedure it applicable for all country  , like check below screen

at OVK1 screen , here japan also assign the tax calcification procedure.

japan assign mwst tax classification -MWST every country maintain , at material master sale organisation 1 , its maintain  ,like below screen it for Indonesia material 

her also assign the ztxj ,

2)one of my material number X  is maintained for sales org 3000 and plant 3000 and the tax classification data is maintained for countries like   belgium,switzerland, china, denmark, france, britain but countries like Japan, austria appear on the TAX data screen but without any tax classification  indicator maintained for Japan, austria.

ans) when you can extend the material for one sales organisation to another sales organisation , it extend for sale view , on that system ask the sale organisation 1 tax field , you can assign to tax type , here you maintain the this material is tax bull or non tax bull, but out this you cannot save ,this for mandatory field for every country  , but some country not maintain excise duties , like austria , japan , Indonesia, usa, dubay . etc , every country , but here  maintain tax procedure s, but no bed, cess , hcess not maintain , only taxs maintain

check path

img-financial accounting-financial accounting global settings -tax on sales/ purchases  - basic settings -assign country to calculation procedure  , here check country wise assign one procedure ,

this procedure main out ,in out taxes maintain

like austria tax procedure, at OBYZ t code you will check 

here not maintain any excise duties , aed,bed,cess, h cess , sed .

for every country and every material maintain out, input taxes , it is tax bull or non tax bull you can assign the at material ,

check like above material screen, same as customer also.

here i post Indian material sale organisation 1 view , here miantain utxj, jtx1.jtx2,jtx3, but another not maintain , only maintain utxj or mwst

so this different with India material , Indonesia material. some country s  not maintain J1id, another excise details .

please check this

regards

reddy

[Former Member]

Hi All ,

Here is the Scenario and the Solution .

  Plant X' ( CN)  is assigned to sale org A' ( US ) causing CN Tax Cat being determined in Material Master along with US tax data.

Checking TVKWZ , X' is the only CN plant that is assigned to US sale org A' causing the tax data to be determined for CN .

Possibility :

1. Plant country ( CN )  may be Incorrect .

or

2. Incorrect Mapping of sale org A' to this CN plant X' .

Correction :

Step: 1  Get all Plants assigned to sale org A'  in Table TVKWZ .

Step: 2  Pass those Plants in T001W to get the Country ...

Step: 3  Get the Country CN' and its related plants. ( these Plant are causing this issue )

Step: 4  Dlink that specific plant and sale org in SPRO.

Step : 5 Validate by creating Material by just passing the sale org A' and now the Tax data should populate for US only .

Thanks !

Manojkumar Radhakrishnan

[Former Member]

Hi Pamela,

We assign sales organization /distribution channel to Plants in Enterprise Structure configuration. This specify the list of plant from which particular material will be sold for a particular sales organization. System finds all the plants from this assignment for a sales organization and present the unique country list for tax classification maintenance. In your example, probably sales organization 4000 have some extra plants in country Japan and austria assigned as compare to sales organization 3000, that is why when you maintain material for sales organization 4000, it present Austria & Japan for tax maintenance. Tax classification for material is not linked to any sales organization or plant but it is maintained at country level (Tax classification table primary keys) hence previously maintained countries are auto populated. Classification values for each country comes from OVK1 configuration.

Hope this answers your question.  This is true for customer tax classification maintenance as well.

Regards,

Naveen Aggarwal

[Former Member]

Hi Naveen,

thanks for the reply.But  you did not reply to my 2nd question part A,

the material X is already maintained for sales org/plant  3000 and  has country Austria in the tax data with " blank" tax classification. How is this possible to have a blank tax classification against a country since one cannot save a material master without putting the material classifcation ?

secondly when the above material X is extended to new sales org/plant=4000, the Austria country is there in tax data but the system is mandatory asking for tax classifcation data for the same. Whereas if you see the above  point in first para, system has saved the material for old sales org/plant=3000 without any tax classifctaion.

Thridly can the tax clasiffication data is maintained manually in material master. Can the tax classification  indicators be automatically populated in material master ?

request you to answer all the above three questions.

regards

Pamela

[Former Member]

Hi Pamela,

Can you list down the Plant with the country mapped to sales organization 3000 & 4000 ?

Tax classification cannot be auto populated nor it can be defaulted to any value. Tax is a jurisdictional master data hence needs to be maintained manually after all precaution.

Regards,

Naveen Aggarwal

[marcin_milczynski]

Hi,

First - the tax classification is empty for country Austria, as the material master record was created before any plant with country AT was assigned in the org structure. Now when you try to change such material, the system requires you to maintain the tax classification for the new material. You can get such materials using transaction RTAXMCHECK.

Second - you copy data from the material created before extending the org structure, so now the system requires to maintain the tax classification for all countries in the newly created material.

You can assign defaul values using BAdI BADI_MATERIAL_REF.

Regards,

Marcin

[Former Member]

Hi,

  The tax classification in the material master / sales: sales org 1 tab is populated based on a configuration under transaction OVK1.

Thanks

Prasad