I am sharing this document here because I faced this issue a couple of days ago and I was not able to find out the reason and solution to this strange behaviour of system. I am not sure whether this is new information for you or not but as it was for me so I thought I should share here so that it may be helpful for some knowledge seekers like me in future.
We had one tax category here in Pakistan till last week and we were using MWST condition for that. Government declared two new tax categories and I was asked to configure these new taxes in a way that finance department could see three taxes in standard reports separately and for that reason I had to create two new tax codes and tax conditions as well.
The steps I followed to achieve this requirement were
- Created two conditions by copying MWST with the names of ZTX1 and ZTX2. I didn’t create any new access sequence or condition table because I was going to use Tax classifications standard fields.
- Added those new tax conditions in pricing procedure.
- As these conditions were copies of MWST so I didn’t make any changes in FI side but I verified all the settings there in Tax pricing procedure.
- Made the necessasry settings in OVK1, OVK3 and OVK4 for tax classifications.
- Maintained tax classifications in material master and customer master data.
- Maintained condition record for 1 1, 0 1, 1,0 combinations where 0 is for Tax Exempt and 1 is Liable for Tax.
- Created Sales order where 1 1 situation was applicable and everything was working fine from order to accounting document of FI invoice.
- Created order for 0 1 or 1 0 combination but system was determining 1 1 combination and in analysis screen was showing the same.
Go through the following screen shot.
At this time tax classification for this material in material master was 0 but in order system was determining 1. I was not aware of use of fields TAXM2, TAXK2 and so on. This was the time when company’s sale was discontinued due to these sales tax changes. I had pressure to complete the configuration ASAP so that sales persons may delivery the materials. I searched in SCN, Google and tried my every possible way but was not able to find out the reason.
For using multiple tax conditions SAP has delivered TAXK1,TAXM1 to TAXK9,TAXM9 fields. For every tax condition we have to create new condition table and access sequence with these fields. You can view these fields in fields catalog as in below screen.
I also tried by creating a new condition table with following fields and an access sequence for ZTX1. Then I maintained new condition record and it determined condition record for 1 0 and 0 1 combination as per my requirement.
Same was the case with ZTX2. For this I used TAXK3 and TAXM3 fields and it worked fine.
Although I solved the issue but still I am confused why SAP has delivered these fields for tax classifications. I have searched in SCN, Google and service market place for SAP notes and found nothing about the reason. There are few threads discussing this solution (which I couldn’t find at the time of need due to different search texts) and also SAP Note 191932 but the reason why we can’t use TAXKD for customer tax classification and TAXKM for material tax classification is still a question mark for me. If someone knows the reason and logic behind this functionality of Tax classifications determination in condition records please share in comments. I have seen a thread in which Jyoti Prakash was sharing the solution with OP so I wonder if JP could share the logic and reason behind this behavior.