Tax Determination

Question 0

Tax configuration (11)

Answer 0

• assign tax cat to a country (cndty in pric proc)
• only cndty w/ tax cnd class can be used
• define region codes within country for regional taxes
• assign delivery plant to determine source country/region
• define tax classif (ex, tax, half) by tax cat for cust/matl
• tax classif can de defined at cust/matl grp level
• maintain tax classif in cmd/sa/billdoc and mmd/so1
• maintain sales tax id# det rule for VAT reg# in order/bill docs
• maintain tax code/rate in FI by ctry/jurisd/txcod/txty/acctkey
• maintain tax cond rec x ctry/ctxclas/mtxclas/txcod
• tax rate det by tax cod in FI not the cond rec rate

Question 1

Tax determination key factors (7)

Answer 1

• customer tax eligibility from customer master
• material tax relevance from material master
• departure country and location from del plant in sales doc item
• destination country and location from ship-to party
• tax determination uses the cnd technique
• redetermined based on PGI date during billing
• tax code and acct key det GL acct for bill doc posting