Internal Tax Calculation in CI Invoicing
This post helps to understand how to setup the system to calculate Internal Tax in CI Invoicing. Here we refer to country- US.
In SPRO , In Financial Accounting the tax procedure is defined and assigned to the county and also the tax codes are defined and assigned to the country.
Look for the Tax Calculation Procedure.
The tax procedure to be used- TAXUSX
The sales tax(output tax) condition types are XR1, . . . . ,XR6 and the accounting keys MW1,….,MW4.
Here the tax procedure is assigned to the country US.
Look for the tax codes.
Look for country Us.
Look for O1 and O0. These two we are going to use in CI Invoicing tax setup.
Tax Code- O0
Above tax procedure and tax codes are all defined in Financial accounting.
Consider that in CI invoicing we want to use Internal Tax calculation, Below steps shows how to do it.
In Tx- FICAING with below highlighted path, first define tax determination .
Select new entries.
Below screen appears.
Provide county as US and tax determination as – FT ( free text) and assign a tax code.
FT(Full Tax) is assigned to tax code- O1 .
Similarly create another tax determination NT( NO tax) and assign to the tax code- O0.
Now go to Tx- FQC0 and open the posting area 2610 and company code chart of account.
When CI invoicing is created it loos for this posting area account determination to derive the G/L account and here we can specify the tax code in the tax determination.
Assign the tax determination.
Here let’s define the alternate tax determination for B2B and B2C scenario.
Now its time to assign the tax G/L account to the tax code and account. Go to Tx- FQC0 and open posting area 0010.
Maintain Tax Account for the tax codes and transaction.
With this the CI setup to calculate internal tax is done.
Now create BITs and the tax calculation is set as – 01 ( internal tax calculation).
Create a CI Billing Doc/Invoicing Order.
Perform the CI invoicing.
The item shows 6 tax items and we have 6 condition types XR1 to XR6 in the tax procedure.
Check the posting document.
So here we have a tax line and now check the Taxes in detail.
All tax details.
Now assign the tax determination as – NT
CI Invoicing Order Tax as 01(Internal Tax calculation)
Ci invoicing doc.
If CI invoicing order is created with tax calculation as – 00 ( no tax calculation).
CI invoicing order don;t contain any tax items.
Posting document contains no tax line items.