SAP FI CO (Financial Accounting & Controlling)
SAP FI CO (Financial Accounting & Controlling) Forum
I am having this query regarding Tax code basics, May I know how many types of Tax code basics are there.
Please assist me so i can proceed further.
Thanks in advance.
Tax code basics: Generally we have three types of tax considering the global environment, withholding tax, taxes at federal/country level, taxes at state/jurisdiction level, when we create tax code into the system, a tax calculation procedure is defined for every tax code which is assigned to every country for calculation of tax.
Calculation procedure contains levels for tax procedure (100, 110, 120), conditions (basb which represents base amount, MWAS which represents output tax, MWVS which represents input tax and there also conditions for any other type of tax) apart from that account keys are also specified for each condition type, each gl account created into the system has "tax category field" in which the below mentioned entries can be made as per the requirement:
" " for non tax relevant postings (bank postings for example)
“-“ for postings that require an input tax code (for example reconciliation account for payables from goods and services)
“+” for postings that require an output tax code (for example reconciliation account for receivables from goods and services)
“*” for postings that require any tax code
“xx” for postings with the predefined tax code
Once the tax code is created we need to make an entry of the tax code in customizing for sap enjoy transactions for which it is to be used, for example out put tax code would be used for outgoing invoices and the path for that would be Financial accounting new-----accounts receivable and accounts payable----business transactions---outgoing invoices/credit memos----outgoing invoices credit memos enjoy----define tax code per transaction, the same for input tax code the path would be for incoming invoices.
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