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How the taxes get calculated in MM

Hi

I want to know - How exactly the taxes get calculated in SAP MM Purchasing

Is it through Tax code only ?

Is it using condition records ?

Can I fetch different tax values with one Tax Code using condition record ?

Bhushan

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4 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Aug 01, 2012 at 05:18 AM

    Hi Bhushan,

    (This query was asked many times. Plz check the forum.)

    Tax Amount was picking from tax procedure.

    See it in obq3

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  • Posted on Aug 01, 2012 at 05:27 AM

    Hi

    You can use Both Tax Procedure (Tax Codes) and Condition Records to Determine the Taxes.

    Normally VAT, NBT and Services Taxes use Tax Proccedure.

    Import Taxes and Non Recoverable taxes we use Condition Records.

    Below Thread Article will give you Clear Understanding of tax Calculation

    http://wiki.sdn.sap.com/wiki/display/ERPSCM/Taxes+in+purchasing

    Regards

    viru

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  • author's profile photo Former Member
    Former Member
    Posted on Aug 01, 2012 at 05:34 AM

    Hi,

    Usually the tax codes are picked up in the po based on the condition types defined in the tax procedure.

    if you have the tax code creation based on the tax classification, you can able to create the condition record for MWST condition type in Mek1 transaction for the combination of tax classification.

    This condition type MWST should be available in your pricing procedure.

    you can able to maintain different values for the same tax code with different validity periods.

    Regards,

    velu

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  • Posted on Aug 01, 2012 at 12:06 PM

    Hi,

    Tax rate calculated based on tax procedure you used for your country.You can go for condition based tax procedure and formula based tax procedure.

    1.In formula based tax procedure, you can find routine used in tax procedure where each routine have formula in it for calculating tax where tax rate picks from J1ID and tax code play role of referal key.

    2.In condition based tax procedure, you can go for tax rate for tax code based and condition based.
    2.1.In condition based, the tax rate picks from tax condition record in t.code:FV11 which maintaioned with tax condition type with tax code and where tax rate play role of referal key.
    2.2. In tax code based , the tax rate picks tax code which is maintaioned at t.code:FTXP where tax rate maintaioned with tax condition type in tax code itself.But you need to maintaion tax rate as 100 % for statistical condition types JMX1 ,JMX2 ,JAX1.JAX2,JSX1 and JAX2

    Yes, you can have different tax rate for a tax code with condition type by having different validity period.

    Regards,

    Biju K

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