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SAP – Sales and Distribution – Tax control and Revenue Account Determination – Lesson 10

SAP – Sales and Distribution ��� Tax control and Revenue Account Determination – Lesson 10

Previous Lesson 

 

Define Tax condition type

 

Taxes as applicable in a country as per material and customer can be configured using pricing condition types for the relevant taxes.

Tax rates can be maintained by integration with FI. Departure and destination can also be used in configuring taxes.

Specific requirements of local taxes with tax jurisdiction can be mapped by allowing interface with external tax systems like Vertex.

Instructions

Follow Menu Path: IMG –> Sales and Distribution –> Basic Functions –> Pricing –> Pricing Control

Taxes are defined as condition types in pricing

Define Tax condition type

Double click on “Maintain Condition Types”

Example – Tax determination for US sales documents with tax jurisdiction

Country – United States

Tax condition type – UTXJ, XR1 to XR6

UTXJ is statistical tax type to pass jurisdiction data to external system.

Define Tax condition typeXR1 to XR6 are defined to receive tax rates for local taxes. On the screen displayed, search condition type UTXJ.

Select condition type XR1

Define Tax determination rules

Let us understand how tax condition types are configured for determination in sales documents.

Instructions

Define Tax determination rules

Click on “Define Tax determination rules”

Define Tax determination rulesClick on

Enter

Define Tax determination rules

Define Tax determination rules

Define Tax relevancy of master records

Instructions

Define Tax relevancy of master records

Click on “Tax relevancy of master records”

Define Tax relevancy of master records

In this configuration, select tax classifications allowed per tax condition type for material and customer taxes.

As taxes could be exempt for certain customers and materials or could be charged with different rates depending upon the classification of materials or customers as per tax laws, tax classifications are maintained against a tax condition type.

In material and customer masters, for a tax condition type, one of these tax classifications is entered. While maintaining tax records, material and customer tax classifications could be used as a part of key combination.

Click on “Customer taxes” Select UTXJ

Define Tax relevancy of master records

Define Tax relevancy of master recordsClick on “Material taxes” Select UTXJ

When tax jurisdiction code is required for external tax system for delivering location, it is taken from the plant definition.

Define Tax relevancy of master records

The above configuration gives the tax jurisdiction number, which is passed on to external tax system like Vertex for calculation of tax rates.

 

Revenue account determination

 

We will study Revenue Account Determination, which is important to understand from SD point of view.

The settings in revenue account determination enable posting of billing values like sales revenue, discount & tax to the correct G/L (General ledger) account.

There are following factors given by standard SAP to determine G/L accounts

  • Chart of account (As assigned to company code)
  • Sales organization (Sales organization of the sales document)

Optional factors can be

  • Account key (It gets determined as per the account key assignment to condition type in the pricing procedure of the sales document)
  • Material account assignment group (sales org data of the material)
  • Customer account group (sales area data of Payer master record)

Let us see where they are maintained in IMG

Instructions

Follow Menu Path: IMG –> Sales and Distribution –> Execute Project

Revenue account determination

Click on “Execute Project”

Enter Transaction Code – “SPRO”

Master data relevant for account assignment

Of the optional factors mentioned above, let us understand the configuration of Customer and Material Account Group.

Instruction

Menu Path:- IMG –> Sales and Distribution –> Basic Functions –> Account Assignment/Costing –> Check master data relevant for account assignment

account assignment

Click on “Check Master Data relevant for Account Assignment”

account assignment

clip_image015Keep the cursor on the line and click on

Material account assignment group can be used to post billing values of different types of materials, for example – trading goods to different G/L accounts than finished goods.

account assignment

Note - With configuration, also understand where material account assignment group maintained in the material master.

account assignment

Customer account group can be used to post billing values to different G/L accounts depending on requirement like reporting revenues separately for domestic and export sales.

account assignment

Note - With configuration, also understand where customer account assignment group maintained in the customer master.

account assignment

Define and assign account key

Instruction

Menu Path: – IMG –> Sales and Distribution –> Basic Functions –> Account Assignment/Costing –> Define and Assign Account Keys

Click on “Define and assign account key”

assign account key

assign account key

Double click on “define account key”

assign account key

Assign Account key to condition types in the pricing procedure

assign account key

So far, we have seen configuration for factors / criteria, which could be used in determining G/L accounts.

Condition technique for account determination

Now, understand use of condition technique to use these factors

Steps:

1. Create condition tables by selecting fields from the field catalog. These fields would be required to map the criteria.

2. Create Access Sequence to add condition tables

3. Create Condition type to link the access sequence.

4. Create Procedure to include condition types, which would be checked and processed during document processing

5. Assign procedure to the document type so that procedure is used during processing of document.

Step 1

Click on “Define dependencies of Revenue account determination”

account determination

account determinationDouble click on Field catalog: Allowed fields for the tables

This will have the fields required as criteria for G/L account determination.

account determination

Tables can be created using above fields. Each table can then used in access sequence KOFI.

clip_image028Let us see standard table, 1 used in access sequence KOFI Double click on “Account determination: Display tables”

Click on clip_image029

account determination

In table, 001, criteria set is seen in selected fields.

Step 2:

account determination

Click on “Access sequences and Account determination types”

account determination

Double click on “Maintain access sequences for account determination”

account determination

Select KOFI and click on Accesses

account determination

Standard tables created in step 1 are assigned in this access sequence.

Select access 10 and click on fields, it will show fields which were used in table 001.

Step 3

clip_image032[1]

Double click on “define account determination types”

account determination

Access sequence KOFI is linked to Account determination type KOFI.

Step 4:

account determination

Click on “Define and Assign Account Determination Procedures”

account determination

Double click “Assign account determination procedure”

account determination

Select KOFI00 and click ‘control data’

account determination

Step 5:

account determination

Double click “Assign account determination procedure”

account determination

With the above configuration set up, G/L accounts can be setup using different criteria.

account determination

Double click on “Assign G/L accounts”

account determination

These are standard criteria given. Using condition technique steps above, new criteria can always be setup creating new condition tables and then following rest of the steps as required.

Example

Double click on table 001

Table 001 can have entry like the one below.

account determination

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