Create Tax Content for Non-Localized Countries/Regions in SAP Cloud Applications Studio – Part 4

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This blog represents part 4 of the 6-part series ‘Create Tax Content for Non-Localized Countries/Regions in SAP Cloud Applications Studio’.

 

Steps of Configuration

We will understand the various steps of configuration in the following blogs :

Overview

Part 1 :

Configure Tax Types
Configure Tax Calculation Procedure (Optional)

Part 2 :

Configure Tax Event
Configure Accounting Attributes for Tax Events (Optional)

Part 3 :

Configure Tax Codes

Part 4 (the blog that you are reading now) :

Configure Tax Rate Schedules
Configure Tax Decision Tree

Part 5 :

Configure Account Determination Product Tax Event Group
Configure Product Tax Event Type Account Determination Product Tax Event Type Group

Part 6 :

SAP Delivered Standard Tax Calculation Procedures

 

To recap from the preceding blog, we learnt how to configure tax codes.

 

In this blog, we will understand how to configure tax rate schedules and tax decision tree.

 

Configure Tax Rate Schedules

For information on how to configure new tax rate types, see section ‘Configure Tax Types’ mentioned above.

You can assign tax rate percentages to tax rate types by following the steps below:

 

1. Follow steps 1 and 2 as outlined in section ‘Configure Tax Types’ mentioned above and continue with the below steps.


2. Under Business Configuration Object -> Name, select Tax Rate from the drop-down list.


3. Click Next. A new window opens.


4. Enter the values as below:

• Country: Specify the country/region for which you need to configure tax rate percentages.

Note: The country/region you want to configure must be available in the tax country table already delivered by SAP. For the list of delivered tax countries, see  Tax Basic Countries. You can only create tax content for the countries included in this list.

• Tax Type & Tax Rate Type: Enter the tax type code and the tax rate type code for which you need to configure the new tax rate percentages.


• Valid From Date: Specify the tax rate schedule validity start date. If you do not know the exact date on which the tax rate percentage has become valid, it is sufficient to specify a date that is earlier than the tax date of business transactions that will be processed in your system.


• Rate in %: Specify the percentage with which the tax needs to be calculated when the above Tax Type and Tax Rate Type combinations are used.

 

 

5. To deploy the new BC set, follow steps as outlined in section ‘Configure Tax Types’ mentioned above.

 

Configure Tax Decision Tree

To determine the product taxes automatically, you need to create a decision tree.

For more information, see Create a Tax Decision Tree.

 

What's next ?

We will have a detailed look and understand the steps of configuration of Account Determination Product Tax Event Group and Product Tax Event Type Account Determination Product Tax Event Type Group in part 5 of this blog series as mentioned above.