I think.. we can treat the 'Use Tax' as a discount...? because here, we are
not collecting the tax from the customer.
Create a separate condition type as 'Use Tax' and create an account key and
assign the same with a G/L code in account determination. here you can
maintain the condition records also.
regards
Abdul Jabbar
| | | ---------------Original Message---------------
From: SAP_OTC
Sent: Thursday, December 09, 2010 3:27 PM
Subject: Sales Tax Determination - 'Use' Tax - Vertex
I have the following scenario.
We're sending items to our Customers that in general are considered Product Requests and are to be free for the Customer. There are a number of different reasons for these Product Requests.
The Customer will not pay anything; however the business scenario should consider what is called "Use Tax".
This "Use Tax" in reality, will not be paid by the Customer; but by the Company shipping the Product, we could say, by the "Seller".
Our Tax Determination is based on an External Tax System, in this case, Vertex.
The Standard Pricing Condition Types for Taxes are XR1 through XR6 using
Routines 301 through 306 which are basically the Tax Interface System.
Here are my questions / comments :
1. As far as I can see, there's nothing in those Routines themselves that I need to change for Vertex to know that I want "Sales" vs. "Use" Tax.
2. If I'm not wrong, what will tell Vertex that I want "Sales" Tax vs. "Use" Tax is the "Tax Code" that I'm sending at the Item Level, e.g. "O1" vs. "O2" vs. "O3", etc. Is that correct?
3. If I'm right on #2, is there a Standard "Tax Code" that I should be considering for the scenario I mention at the beginning of this message? I can see SAP has "U1"; however, the description for that says "A/P Self-Assessment Use Tax" and some documentation I have says that is mostly used mainly for Purchase Orders, Invoice Verifications and Accounts Payable and I guess I'm a little confused with this part. My scenario is really on the SD side; however as I mention above, the "Use" Tax will not be paid by the Customer; but by the Company itself, so, I wonder if this is the Tax Code I should be proposing in Tax Determination or if I should be creating a new one that has a Tax Type of "A" – Output tax vs. "V" – Input tax, which is the way U1 is created.
4. For proposing this Tax Code, I will obviously need to create Tax Condition Records that will make use of the Tax Classifications from the Customer and Material Masters; but those are not really changing compared to how we use them for Normal Sales. The only thing that I can think of that will tell me I need to propose a different Tax Code is the Order Type that I will be using for these "Product Requests". Does that mean, I need to create a new Condition Table that has the Order Type as part of the Key Fields and include this Table in the Access Sequence for Condition Type "UTXJ" which is ultimately the Condition Type that is used to create the Tax Condition Records? Unless I'm missing something I don't see any other way I can propose a different Tax Code from the one we're proposing for Normal Sales.
5. This previous point confuses me a little bit as well, because, if in fact I should work with Tax Code "U1", some documentation I have, relates that Tax Code to Condition Types XPI1 through XP6I and XP1U through XP6U which seem to be Condition Types only for Tax Calculation purposes that I don't see in the MM or SD Pricing Configuration; but only in the FI Tax Calculation section to be used by Tax Procedure TAXUSX. If I'm supposed to use XR1 through XR6 in my Sales Document to receive the "Use" Tax Rate from Vertex, how does SAP link the XR's to the XP's? or are the XP's supposed to be in my Sales Pricing Procedure? The XP's just like the Tax Code "U1" seem MM oriented though, that's confusing me.
6. For this Sales Scenario, I will ultimately have to create a Billing Document so I can have an Accounting Document, otherwise, I won't have the Tax Postings they're looking for. My question here is, if I get the "Use" Tax Rate into the XR1 through XR6 Condition Types, whenever I create my Accounting Document, isn't that going to taken as an A/R posting and end up being posted to the Customer Account? The Customer will not pay for that Tax, the Company will. What I was planning to do, was to create a separate Pricing Procedure for this Business Scenario where I would have the XR1 through XR6 as "Statistical" Condition Types, so, an amount is calculated; but not taken as part of the Document Value. Does that make sense? Not sure if SAP will allow me to do that or not; but that's what I was thinking I could do.
As you can see I have been researching all this stuff; but if someone out there has configured this part or hasn't but has an idea of what I should be doing, please let me know, I would really appreciate it. |
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