Answer / shyam sunder umar

You specify the valid tax types in transaction OVK1. More
than one tax type can be defined for a country by defining
the sequence.

The SAP System determines the taxes automatically within
pricing.

In the standard SAP R/3 System, the elements of tax
calculation are predefined (for example, tax condition
type "MWST" for taxes on sales and purchases).

Assign the plant for Tax Determination in OX10, using the
country key, the SAP System recognizes which tax type is
valid for a plant and thus which taxes are relevant when
creating an SD document.

Define the Customer Taxes in OVK3, you will maintain the
tax code in Customer Master.

Define the Material Taxes in OVK4, which will then be
maintain in Material Master.

For example :-
MWST GST 0 Tax Exempt
MWST GST 1 Liable for Taxes

Now, you define the Tax Determination in VK12.

VK12 - Domestic Taxes/Export Taxes

Condition Type MWST

Customer Taxes Material Taxes Rate Taxes
0 0
0 %
0 1
0 %
1 0
0 %
1 1
9 %

In this example, if both the Customer Master and Material
Master Tax code is 1, Tax will be included when you create
the Sales Order.

Tax Code in Customer Master / Sales Order

How can we maintain the Tax Code (Tax code - which we
maintain in MWST Condtion Records) in Customer Master or in
Sales Order?

There are few points which I would like to remind you:

1) MWST is a tax condition which is applied to customer to
whom we are selling. The rate of tax is depend on various
parameteres, whether is fully liable for tax or expemted
(in case of Defence Customer)

2) There are few parameteres which we apply tax condition.
Whether customer is tax liable? Whether material is tax
exempted?

For example, if you are selling a goods which are free for
tax to any customer, put the Tax Indicator (at MMR as '0').
If your
material is tax liable pur the Tax Indicator (at MMR as 1).
If your customer is not liable for tax at all (like the
case of Indian
Defence organisations) put the Tax Indicator (at CMR as 0)
or 1 in case fully tax liable.

3) Now, at VK11 you need to mainatain your pricning
conditions with all the combinations like:

1 0
1 1
0 1
0 0

4) While maintaining your Material Master Records or
Cusotmer Master Records, you must identify, which are tax
liable and which are tax exempeted.

5) In anycase, as a SAP standard Best Practises, while
processing a sales order, you must retrieve a Tax condition
record from SAP database only and not entered Manually.
Accordingly, at V/06, the MWST condition Defintions, the
field for 'Manual Entries', it would be marked as - D (Not
possible to process Manually).

Due to this setting, normally, you cannot maintain
Condition tax code during sales order processing. And in
Cusotmer Master, you can only maintain Tax Indicator and
not Tax Code.

6) In case your client insists for Manual entry of Tax code
during Sales Order processing, you can change the field at
point 5) above to C-Manual entry is priority instead of D.

Answer / subha

Hi Siva

Please do to VOk0 ( t code for pricing ) and go to pricing
proceedure thereyou wil have to doubble click on RV001 THE
STD CODE for pricing anddoubbl clickon it and go tomwst and
click ityes . once doneyou wilnotge this error. You are
gettign this error as you have not defined the tax
criteria

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