SD Tax Condition Records
This post describes how to maintain tax condition records( for country US).
Let’s look at a SAP delivered pricing procedure for country: US . It can have 4 tax jurisdiction code.
There are different condition types related to TAX- UTXJ, JR1, JR2, JR3 and JR4.
SD condition records are maintained in Tx- VK11/VK12/VK13.
Let’s check UTXJ condition type in Tx- VK13.
In the condition type- UTXJ is used to find out the tax code- based on the customer tax classification and material tax classification. Once the tax code is found further condition types JR1, JR2,JR3 & JR4 can be sued to find out a particular tax percentage based on the tax jurisdiction code.
To maintain TAX condition records Tx- FV11/FV12/FV13 can be used.
Open TX- FV13(display) . A 4 level tax can be maintained for 4 tax jurisdiction code.
Here it says: if the tax code is – O1 and tax jurisdiction code is- PA000000, then 6% is the tax.
Generally tax jurisdiction code is maintained on the BP/Customer. The customer tax classification is maintained on the customer master and material tax classification is maintained on the material master. When you create a order and provide a sold-to-party , then customer tax classification is derived and from the partner ship to party the tax jurisdiction code is determined, once you enter a a material in the order, the material tax classification is derived from material master.
So the information, customer tax classification combined with material tax classification, together uses the condition type UTXJ to determined the tax code.
Then COUNTRY, tax code and the tax jurisdiction code used to derive a tax percentage from the tax condition type JR1/JR2/JR3/JR4. Then finally tax amount is calculated for the material on the order.