Defaulting Tax Code in PO – Condition Technique

        The tax code can be defaulted in PO from info record as well as through condition technique.

        The very common method is by maintaining the tax code in info record. But there are some cases where the tax code has to be pulled based on some special criteria like vendor region, plant region etc . In such cases, the tax code can be defaulted in PO through condition technique.

Now, we will discuss the scenario for defaulting tax code based on plant and vendor region combination. The same logic can be used with other criteria also.

Through Condition technique:

Step 1: Go to M/03 and create a new condition table with the access criteria. Here, its plant and vendor Region.

Step 2: Create a new access sequence, (or add to existing access seq) for MM conditions in M/07 and assign the condition table to the access sequence.

Check the fields:

Step 3: Create a new MM pricing condition type (or use existing condition type with condition class D) by copying MWST (or use MWST itself) in M/06
Assign the access sequence to the condition type.

Please ensure that the condition class is D (Taxes) as highlighted in the screenshot.

Step 4: Include the condition type in MM pricing procedure in M/08

Step 5: Maintain condition record for the condition type in MEK1.

Maintain the required tax code in the condition record for the correct combination.

Now, If I’m creating PO for the plant and vendor with region in the cond record (here, 07), the tax code ( E3 in my example) will be defaulted in PO.

Step 6. Create PO for a vendor with the above combination.

Check the region maintained in the vendor master.

Create PO:

Check the PO Item Conditions:

The tax code will be visible in the details of the condition type:

Analyze the pricing to see the access flow:

Note: The tax code from the condition technique has higher priority than the tax code from the info record.

Thank you,

AKPT