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by Sundar Krishnan: Sap and Taxation
by Sundar Krishnan: Sap and Taxation
- By Sundar Krishnan
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Now question arises as to how the taxes are calculated if no percentages are maintained? They are
calculated based on the MASTER DATA maintained in conditions as tax percentages; Like in MM module,
FV11 transaction is used and in SD module, VK11 transaction is used to maintain. Multiple combinations
are available for maintaining the above said master data. By using the above transaction code select the
respective TAX condition type to maintain the tax percentages. The condition types are already attached
with the access sequence and the master data can be maintained with various combinations. In case if
you want more combinations, modify the access sequence table to suit your need. The below illustration
will help to understand the same.
Lets say the Value Added Tax (VAT) % is 20%
The condition type relevant to VAT is JVAT
Now in FV11, for a material, vendor and Plant combination, you can update the % and the relevant TAX
code V1 as a tax code and the description as INPUT VAT 20% KARNATAKA
As a next step when you create the PO, the system will calculate 20% as VAT tax on the Base price. As
per the above illustration each and every TAX condition type needs to be updated as master data.
The next master data that needs to be maintained for India implementations is through the transaction
Code J1ID. In this separate vendor master, customer master and material master needs to be
maintained. Also, the material classification, chapter Id, PAN no and VAT no needs to be maintained.
Based on the above master data updated, the TAX engine calculates the related taxes and posts the
same as per the General Ledger determination.
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