Skip to Content

Dear Fellows ,

I would like to share with you a special business scenario that i faced with my client  for sharing knowledge and also to discuss if there were any other better techniques to apply this scenario

Business Scenario :

– My client have a basic Output Tax 10% , for a certain group of customers , he wants to apply an extra 1 % Additional Tax

Solution :


Create a new condition type for the new tax and include it in pricing with a new access and tables including customer group ,create a new tax code with value 1%

– Assign customer group value to targeted customer and maintain condition records for the condition type

Steps :

  1. Create a new customer group ( t.code : OVS9)

9-18-2013 1-54-19 PM.jpg

2- Create a new tax condition type  for the additional taxes

(Sales and Distribution-Basic Functions-Pricing-Pricing Control-Define Condition Types)

9-18-2013 11-21-18 AM.jpg

3- Create a new table and include the customer group in it to use it in the taxes access sequence

Here, i used only 3 fields : Customer group , tax classification for material, tax classification for customer

(Sales and Distribution-Basic Functions-Pricing-Pricing Control-Define Condition Tables)

9-18-2013 11-24-44 AM.jpg

4- Create a new access sequence and include the previously created table to it and assign it to your condition type

(Sales and Distribution-Basic Functions-Pricing-Pricing Control-Define Access Sequences)

9-18-2013 11-23-48 AM.jpg

5- Include the new condition type in your pricing procedure ( don’t forget to create a new account key for the taxes )

6- Define Tax Determination Rules for the new condition for your country

(Sales and Distribution-Basic Functions-Taxes-Define Tax Determination Rules)

9-18-2013 2-14-25 PM.jpg

7. Define Tax Relevancy Of Master Records for the new tax condition ( define it for both customer and material )

(Sales and Distribution-Basic Functions-Taxes-Define Tax Relevancy Of Master Records)

9-18-2013 11-20-01 AM.jpg


8- Assign your new account key to the proper G/L account in Account Determination

Now after you completed all needed configuration in SD to configure and maintain the new tax condition ,From FI side , you must also create a new tax code for it to complete your configuration and to be able to use it in your condition records

Finally create your condition records for the tax condition using the new tax code

9-18-2013 11-50-31 AM.jpg

Now test your sales order and you will see the new tax is effective in your sales order

Hope that this document will help anyone a little



To report this post you need to login first.

19 Comments

You must be Logged on to comment or reply to a post.

  1. Arun Biswal

    Hi Moshira,

    Tell me one things, this additional tax 1% is calculate on base price or output tax 10%?

    If it is on output tax 10%, then in situation of where output tax is not applicable that time how system calculate additional tax?

    Regards

    Arun

    (0) 
    1. Moshira Ismail Post author

      Dear Arun ,

      this is additional tax calculated on the base price , which is calculated beside the normal taxes with a special condition to be applied for some customers

      (0) 
  2. Pradeep Mani

    Hi Moshira,

    Good work,is the addition tax 1% is on Base price or on 10%Output tax.This is for our know on taxes are captured as per your scenario. Very much informative for beginners.

    (0) 
  3. TW Typewriter

    Moshira,

    Thank you for this document!

    It would be helpful for members wanting to understand Tax related configurations.

    Few questions –

    Below configuration steps are not mentioned, why?

    a. After the creation of this tax condition type ZMWS, it should also be included in the tax procedure.

    Path – IMG>Financial Accounting>Financial Accounting Global Settings>Tax on Sales/Purchases>Basic Settings

    b. The value of this condition type with the choosen Tax code.

    Path – IMG>Financial Accounting>Financial Accounting Global Settings>Tax on Sales/Purchases>Posting

    Business example –

    c. Could you give the business reason for charging extra tax on some customers?

    ‘ MoazzaM ‘ , G Lakshmipathi could you give some business examples for this scenario?

    (0) 
    1. ' MoazzaM '

      Hi TW

      I liked the comment of Jurgen L that there are more ways to kill a Dog except hanging. Same like that we can achieve a requirement from many ways. I had a requirement for tax two months ago. For this fiscal year Pakistan Government imposed different taxes for registered and non registered customers. In our company we have both type of customers. For register customers Tax is 17% and for non register it is 18%. We can also achieve this by creating a new tax indicator which we maintain in Customer Master sales area data billing tab. Maintain condition record according to the customer tax indicators.

      In Moshira’s example I think we can also achieve this with this approach. If the requirement is to post tax in same GL then we can follow the above mentioned approach. If they ask that they want both taxes in different G/Ls then we will create two conditions but grouping can be used from tax indicators.

      Please correct me if I am wrong.

      Thank$

      (0) 
      1. Moshira Ismail Post author

        Thanks Moazzam for sharing another technique for solving such a business case , like what you said there is always a lot of ways to achieve one requirment in SAP , i belive that what gives SAP its strength

        (0) 
    2. Moshira Ismail Post author

      Dear TW ,

      Thank you for your usual support and your efforts 🙂

      Well , i was going to add also tax related configuration but i thought it might be somehow related to financial more , i will edit the topic and add all related screen shots for creating the new tax code from financial accounting view .

      For my business examples , In Egypt all customers are engoing a 10% tax value on every sales order but for some certain group of customers , an additional 1% tax may apply. Each one of them is posting to a different G/L Accounts .

      (0) 
      1. TW Typewriter

        Moshira,

        Thank you for your post! Yes I too thought that because the steps are related to FI, you might have skipped those. But please include those, it would be beneficial and clearer to understand.

        E.g.

        1. MWST is not included in the tax procedure. Why not?

        2. In the tax procedure, we are giving the Account keys, so why do we need to give the same in the pricing procedure also?

        In Egypt all customers are engoing a 10% tax value on every sales order but for some certain group of customers , an additional 1% tax may apply.

        3. What is the reason for some groups of customers paying more tax?

        4. What was the business reason to have the 1% (extra tax) be posted to a different G/L account?

        (0) 

Leave a Reply