Taxes in purchasing | ERP软件技术分享

Created by Sanjeev Shrivastava on Dec 07, 2015

Taxes in purchasing

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Created by Sanjeev Shrivastava on Dec 07, 2015

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Purpose

This Wiki document discuss about input taxes in purchasing.

Overview

It will provide details on type of input taxes in Purchasing, their types, usage and customization. This document will also provide you information about common problems and areas where you can look for their cause and their solutions. This document also talks about special cases and related notes.

INDEX

Basics: Taxes in Purchasing

Tax code in the Purchase order (PO)

Tax calculation in the PO

Customizing for Taxes: FI (Financials)and MM-PUR (Material Management - Purchasing)(Summary)

Important Forms/Modules for Taxation

Typical problems and where to look

Special cases

Types of taxes in Purchasing :

Non-deductible input tax :

This amount should be regarded as an additional cost item of the procurement because the tax authorities do not refund this amount unlike the deductible part of the tax. Therefore, the non-deductible part of the tax is added to the stock value during the inventory posting.“ (Reference FAQ note 501054, question 3).

(Remark: Which tax has to be considered as a non-deductible tax in this sense depends on the local tax law)

Deductible Taxes:

This input tax is paid to the vendor, who passes this on to the tax authorities. The offsetting entry for the tax is posted to a separate input tax account, on the basis of this account and the sales tax account, Financial Accounting can calculate the difference between the tax received and tax paid and pay this amount to the appropriate tax authority.

The system creates a line for every tax code you enter. If various line items have the same tax code, the tax postings are added together.

Tax code in the PO :

The tax code determines the tax rate.

Taxes are calculated on a base amount with the tax rate from the tax code.

The tax rate for the tax code is maintained in FI customizing (transaction FTXP, see below).

Taxation is country specific; i. e. tax code N1 for India could mean another tax rate than N1 for Germany.

Relevant for taxation in Purchasing is the country of the (receiving) plant.

Taxes in the PO are calculated on item level (table EKPO).

Tax code is stored in field EKPO-MWSKZ.

Tax amount is stored in field EKPO-NAVNW.

You can see the tax code in the PO

Enjoy transaction PO: “Invoice” tab

Non enjoy transaction PO: “Item details” screen

To see how tax has been calculated

Enjoy transaction PO: “Invoice” tab, button “Taxes”

Non enjoy transaction PO: menu path > Item -> More functions > taxes

Tax code determination in PO happens as below:

preceding item

contract

RFQ

info record

condition technique

(see Form MEPO_ITEM_FILL_MWSKZ include LMEPOF3Y for the enjoy transaction PO and the UEBERNAHME_… - routines called from NEUE_POS_BESTELLUNG for the non enjoy transactions PO)

Condition technique for taxes in the PO - 1

Condition type NAVS, customizing settings (cf. FAQ note 501054, question 4)

Condition class: 'D' (Taxes)

Calculation rule: 'B' (Fixed amount)

Condition category: 'N' (Non-deductible input tax) (Remark: ‚D‘ would also be possible, but ... see below)

Scale type: ' ' (must remain empty)

Access sequence (for condition tables): ‚003‘

Condition technique for taxes in the PO - 2

Maintain condition tables with transaction MEK2 (country specific!)

Define tax indicators for material, plant, account assignment category in purchasing customizing (transaction OLME -> Taxes)

Assign tax indicators for plant, account assignment category in purchasing customizing (transaction OLME -> Taxes); assign tax indicators for material in material master, purchasing tab.

Condition technique for taxes in the PO - 3

Determination of tax code with condition technique is done in function module PRICING (from SD (Sales and Distribution), component SD-BF-PR)

PRICING is called in form PREISFINDUNG. Tax code is moved into EKPO-MWSKZ in PREISFINDUNG. (MEPO and SAPMM06E)

Interface structures for PRICING are KOMK and KOMP. They are filled in function modules ME_FILL_KOMK_PO and ME_FILL_KOMP_PO. (MEPO and SAPMM06E) Calls:

SAPLMEKO FUNCTION ME_FILL_KOMP_PO

SAPLMEPO FORM KOND_KOMP_FUELLEN

SAPLMEPO FORM PREISFINDUNG_VORBEREITEN

SAPLMEPO FORM PREISFINDUNG

Condition technique for taxes in the PO - 4

Important fields in structures KOMP and KOMK for tax

determination:

KOMK-LAND1: country relevant for taxation, taken from (receiving) plant.

KOMK-TXJCD: tax jurisdiction code, relevant for US tax (see below).

KOMP-TAXIM, -TAXIK, -TAXIW, -TAXIL, -TAXIR: tax indicators, e. g. KOMP-TAXIM: Tax indicator for material, taken from material master.

(For more details have a look at the structures in SE11 and at function modules ME_FILL_KOMK_PO and ME_FILL_KOMP_PO.)

Tax calculation in the PO

Determination auf tax code (from preceding documents or via condition technique).

Move tax code into EKPO-MWSKZ (form PREISFINDUNG, after call of function module PRINCING).

Call form KOND_TAXES (MEPO and SAPMM06E)

Some checks (e. g.: Does EKPO-MWSKZ exist? à no tax calculation without tax code!)

Fill interface structure for tax calculation TAXCOM.

Call tax calculation function module CALCULATE_TAX_ITEM (responsible is FI, component FI-GL-GL-F).

Call function module PRICING (again!) from CALCULATE_TAX_ITEM to calculate tax amount. Call stack:

SAPLV61A FUNCTION PRICING

SAPLTAX1 FUNCTION CALCULATE_TAX_ITEM

SAPLMEPO FORM KOND_TAXES

SAPLMEPO FORM PREISFINDUNG_UEBERNAHME

SAPLMEPO FORM PREISFINDUNG

Write tax amount into EKPO-NAVNW in form KOND_TAXES.

Write tax amount into the first condition with condition category 'N' (in Standard condition type NAVS) in form KOND_TAXES. Remark: Like this tax calculation becomes part of the pricing procedure.

Prerequisite : calculation schema must contain tax condition type with condition category ‚N‘

Customizing for Taxes: (FI part)

Basic settings for taxes have to be customized in FI (Purchasing uses FI functionality for taxes!):

Tax calculation procedure Tax calculation uses condition technique too. In Purchasing we usually just rely on these settings, but on customers systems we sometimes have to check them. Assign tax calculation procedure to country: IMG (SPRO) -> Financial Accounting > Tax on Sales/Purchases > Basic settings > Assign country to tax calculation procedure Check settings of tax calculation procedure: IMG > Financial Accounting > Tax on Sales/Purchases > Basic settings > Check Calculation procedure

Remark Relevant for Purchasing are tax conditions with the following feature: -> There is a posting indicator ‚3‘ assigned to the account key. In Standard these are conditions with an account key ‚NVV‘. -> To check this in debugging put break point in form NAV_ANTEIL_AUS_T_KOMV called from function module CALCULATE_TAX_ITEM.

2. Tax codes IMG > Financial Accounting > Tax on Sales/Purchases > Calculation -> Define Tax Codes for Sales and Purchases (or directly with transaction FTXP) Type in country. Type in tax code you would like to check, to create, or to maintain. Look for line with account key ‚NVV‘ (in Standard).

Customizing for Taxes: Purchasing

Define and assign tax indicators for material, plant, and account assignment: IMG > Material Management > Purchasing > Taxes (for material see also the ‚Purchasing‘-tab in material master)

Check tax condition type: IMG > Material Management > Purchasing > Conditions > Define Price Determination Process > Define condition types

Check calculation schema for PO: IMG > Material Management > Purchasing > Conditions > Define Price Determination Process > Define Calculation Schema

Check entries of condition tables: transaction MEK2 > type in condition type (e. g. NAVS) > choose table with radio button -> type in country

Important Forms/Modules for Taxation :

Get tax code from preceding documents:

MEPO (“new” PO): MEPO_ITEM_FILL_MWSKZ

SAPMM06E (“old” PO): fill routines UEBERNAHME_2_KONTRAKT for contracts, UEBERNAHME_2_ANFRAGE for RFQs, UEBERNAHME_INFOSATZ for info records, all called from NEUE_POS_BESTELLUNG

Get tax code with condition technique: form PREISFINDUNG calls SD-function module PRICING to determine tax code (both MEPO and SAPMM06E), moves tax code to EKPO-MWSKZ

Calculate taxes: form KOND_TAXES prepares interface structure TAXCOM, calls function module CALCULATE_TAX_ITEM, moves tax amount to EKPO-NAVNW and condition table TKOMV

Typical problems and where to look :

Tax code has not been determined correctly

Check whether tax code comes from preceding document or from condition technique.

When it has been determined by condition technique.

Check tax code customizing with transaction FTXP.

Check condition tables with transaction MEK2.

Place break point in form PREISFINDUNG. Check interface structures KOMK and KOMP. Check what PRICING gives back in table TKOMV and what is written into EKPO-MWSKZ.

Tax has not been calculated correctly: Place break point into form KOND_TAXES. Check interface structure TAXCOM (e. g.: is TAXCOM-LAND1 correct?). Check what CALCULATE_TAX_ITEM gives back in HWERT.

Tax amount has not been written correctly into EKPO-NAVNW: Place break point into KOND_TAXES. Look what happens with HWERT which comes back from CALCULATE_TAX_ITEM.

Tax amount has not been written correctly into tax condition: - Check customizing of tax condition (cf. FAQ note 501054, question 4). - Place break point into KOND_TAXES and look what happens in the first DO-ENDDO-loop with HWERT.

Special cases :

Tax calculation with tax jurisdiction codes (US taxes) -> separate knowledge paper will be available

Taxes in services (MM-SRV) -> separate knowledge paper will be available

Special localization (Brazil, India)

501054 - FAQ: Taxes in purchasing

SAP Note, Version: 10, Released On: 13.01.2014

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Symptom

This text contains a list of frequently asked questions on the topic taxes in purchasing.

Catalog of questions

1. How is the tax code determined in purchase orders?

2. How is the tax jurisdiction code (tax jurisdiction code) determined in purchase orders?

3. How is the tax amount calculated?

4. What must I take into account for Customizing of a tax condition type for purchasing?

5. The deductible tax amount is not to be considered as a cost item of the procurement. Is it nevertheless possible to display it when printing a purchase order, for example?

6. How is the tax determination in purchasing linked with the tax determination in the service (MM-SRV)?

7. For the automatic specification of the tax code in purchase orders, I defined an access sequence with own condition tables in Customizing. Why does the system not determine the tax code again when changes are made to a purchase order which affect fields of these condition tables?

8. I use a tax handling that works with tax jurisdiction codes. Is it possible to determine the tax jurisdiction code depending on the actual delivery address and to use it for the tax calculation?

9. I use a tax handling that works with tax jurisdiction codes. At the same time, I defined plants with a foreign location for company code in the system. However, the tax handling for purchase orders for these plants does not work or does not work correctly.

10. You create a purchase order for a plant abroad or change such a purchase order. The system generates an error message and/or the tax code is not determined correctly.

--------------------------

1. Question:

How is the tax code determined in purchase orders?

Answer:

In the standard system, the system consideres the following sources for the tax code (in this sequence): Reference item, contract, request for quotation, info record. It can also be entered manually. Furthermore, the tax code can be automatically determined via the condition technique. This then has priority. For the determination of the tax code via the condition technique, condition type NAVS with assigned access sequence 003 is available in the standard system. With Transactions MEK1/MEK2, depending on tax indicators (material, plant, account assignment, origin) you can define different tax codes in the condition tables. In principle, you can assign this access sequence also to other condition types. The tax code is only transferred to the purchase order if class 'D' (taxes) is the condition type. If there are several condition types of this class in the condition schema, then the first condition schema which contains a tax code has priority. --------------------------

2. Question:

How is the tax jurisdiction code (tax jurisdiction code) determined in purchase orders?

Answer:

You activate the tax handling with tax jurisdiction codes in FI Customizing (transaction OBCO). In the standard system during the creation of a purchase order, the system consideres the following sources for the tax jurisdiction code: Reference item, request for quotation, contract, plant, the account assignment object. During this process, the system overwrites the respective preceding value in this list. If, for example, you have maintained a tax jurisdiction code with the account assignment object for a purchase order item, this entry "wins" as opposed to the entry in the plant table. Besides this, the tax jurisdiction code can be entered manually. If you use the function from Note 493515, also the tax jurisdiction code from the delivery address can be taken into account (see below.). --------------------------

3. Question:

How is the tax amount calculated?

Answer:

Only the non-deductible part of the tax is calculated. This amount should be regarded as an additional cost item of the procurement because the tax authorities do not refund this amount unlike the deductible part of the tax. Therefore, the non-deductible part of the tax is added to the stock value during the inventory posting. In the purchase order item, the non-deductible tax amount is saved in field EKPO-NAVNW and, if existing, it is saved in the first condition type of category 'N' (non-deductible tax). In the standard system, these are condition types NAVS and NAVM. For this reason, calculation rule 'B' (fixed amount) must be set for the condition type (also refer to Note 138434). Moreover, you have to take into account that the non-deductible tax amount is calculated with function module 'CALCULATE_TAX_ITEM' program-internally. The calculation does not occur within the price determination. As a result of this, the tax amount is only calculated after you have returned from the condition screen and is not calculated on the condition screen when you change the price. --------------------------

4. Question:

What must I take into account for Customizing of a tax condition type for purchasing?

Answer:

In order to ensure that the tax code is transferred to the purchase order and that the tax amount is calculated correctly, you should make the following settings:

Condition class: 'D' (Taxes)

Calculation rule: 'B' (Fixed amount)

Condition category: 'D' (Tax) or 'N' (Non-deductible input tax)

Scale type: ' ' (must remain empty, this means 'can be maintained in condition record')

In addition, take into account that you have to set the tax record which is assigned to a tax code in purchasing in FI Customizing (transaction FTXP). --------------------------

5. Question:

The deductible tax amount is not to be considered as a cost item of the procurement. Is it nevertheless possible to display it when printing a purchase order, for example?

Answer:

This is possible. For this, proceed as described in note 214151. --------------------------

6. Question:

How is the tax determination in purchasing linked with the tax determination in the service (MM-SRV)?

Answer:

Answer: For detailed information on this, refer to Note 495316. --------------------------

7. Question:

For the automatic specification of the tax code in purchase orders, I defined an access sequence with own condition tables in Customizing. Why does the system not determine the tax code again when changes are made to a purchase order which affect fields of these condition tables?

Answer:

In order to determine the tax code again, the price determination must be triggered again. Due to performance reasons, in the standard system not all changes are taken into account in the header and item fields. As of Release 4.6B using Business Add-Ins (BAdIs) you can, however, define additional fields the change of which triggers a new price determination (see note 495264). --------------------------

8. Question:

I use a tax handling that works with tax jurisdiction codes. Is it possible to determine the tax jurisdiction code depending on the actual delivery address and to use it for the tax calculation?

Answer:

This is possible. As of Release 46B, by means of a Business Add-In (BAdIs) you can define that and how the tax jurisdiction code defined in the delivery address is to be considered at the tax calculation in the purchasing (cf. Note 493515). This, however, only applies to the 'new' SAP ordering transaction ME21N. --------------------------

9. Question:

I use a tax handling that works with tax jurisdiction codes. At the same time, I defined plants with a foreign location for company code in the system. However, the tax handling for purchase orders for these plants does not work or does not work correctly.

Answer:

The purchasing uses the FI function for the calculation of taxes. In order to ensure that the tax handling for foreign plants works, you must activate and set the option "Plants abroad" in the FI Customizing. However, this option is not compatible with a tax handling with tax jurisdiction codes. You cand find additional information in the Notes 332499 and 335816. --------------------------

10. Question:

You create a purchase order for a plant abroad or change such a purchase order. The system generates an error message and/or the tax code is not determined correctly.

Answer:

For this application area, the following notes exist:

492935: ME21N ME22N FICORE704 upon company code change

423019: ME21N Incorrect tax code after change of plant

494420: ME21N Incorrect price determination when plant is abroad

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	Software Component	From	To	And subsequent
This document is not restricted to any software component	This document is not restricted to any software component	This document is not restricted to any software component	This document is not restricted to any software component	This document is not restricted to any software component	This document is not restricted to any software component	This document is not restricted to any software component

SAP Note/KBA	Component	Title
793583	MM-PUR-GF-TAX	Tax Jurisdiction code from address number
792672	MM-SRV-GF-TAX	ME21N Tax jurisdiction code disappears from address
673346	MM-PUR-PO-BAPI	BAPI: External number assignment and tax jurisdiction code
661915	MM-PUR-PO-BAPI	BAPI tax jurisdiction code is not determined
633534	MM-PUR	ME21N BAdI functions are not availabe
625819	MM-PUR-GF-TAX	Enhancement for US tax calculation
583756	MM-PUR-GF-TAX	Problems with report RM06ENMW
545108	MM-PUR-GF-TAX	ME21N Error when changing tax jurisdiction code
495264	MM-PUR-GF-PR	ME21N: Controlling the pricing - Enhancing the std system
494420	MM-PUR-GF-PR	ME21N: Incorrect price determination when plant is abroad
493515	MM-PUR-GF-ADR	ME21N: Tax jurisdiction code from delivery address
492935	MM-PUR-GF-TAX	ME21N ME22N FICORE704 upon company code change
335816	FI	Plants abroad and tax jurisdiction code
332499	FI	Plants abroad in systems with jurisdiction code
323019	SCM-APO-FCS-BF	SDP selector: Selection of intervals not correct
302998	XX-PART-TIF	Collecting fields for user-exit
214151	MM-PUR	Tax processing in purchasing
1828700	MM-IM-GF-COBL	ML81N/MIGO: Tax jurisdiction in the material document
138434	MM-PUR	ME21: Incorrect value for percentage conditions
1039435	SRM-EBP-CA-TAX	FAQ: Trigger of tax update

SAP Note/KBA	Component	Title
2154020	MM-PUR-GF-TAX	Error 06388 when no Plant is defined in the Info Record
3134714	MM-SRV-PR	Tax code not updated automatically for service PO item
2441302	MM-IM-GF-POVL	Taxes in goods movements
2792330	MM-SRV-GF-TAX	Separate tax line in the accounting document for SES
2568701	CO-OM-OPA-D	Commitment value in report for Non-deductible input tax PO/PR
2644237	MM-IV-LIV	How non-deductible tax is calculated in transaction MIRO
1977897	MM-PUR-GF-CO	Non-deductible input tax in commitment of material management documents
1927517	MM-PUR-GF-TAX	Tax (like NAVS) changes on condition tab after going to the invoice tab's taxes screen
2519121	XX-CSC-IN-MM	ME21N: Tax Code not default from Transaction FV11.
3067001	FI-LOC-LRQ-JP	Japan - HEISEI 28 (FY 2016) Tax Reform - Introduction of Invoice Method (TEKIKAKU SEIKYUSHO TOU HOZON HOUSHIKI), effective on October 1st, 2023
3018298	MM-SRV-GF-TAX	BREXIT: Determination of Tax Indicator Import (KOMP-TAXIL) for Services in Purchasing Documents - Northern Ireland Protocol
2998267	MM-PUR-GF-TAX	Adaption in Purchase Order for Northern Ireland Protocol / BREXIT
2997274	MM-PUR-GF-TAX	ME21N:/ME31L: Tax code not adopted from condition record
2934984	FI-GL-GL-F	Procedure for changing VAT rates
2603798	XX-CSC-JP	Japan - HEISEI 28 (FY 2016) Tax Reform - VAT Rate Change, effective on October1st, 2019
2028154	TM-FRS	Tax Handling Implementation for SAP TM 9.1 for FSD integration with SAP ERP
1828700	MM-IM-GF-COBL	ML81N/MIGO: Tax jurisdiction in the material document
335816	FI	Plants abroad and tax jurisdiction code
1039435	SRM-EBP-CA-TAX	FAQ: Trigger of tax update
495264	MM-PUR-GF-PR	ME21N: Controlling the pricing - Enhancing the std system

	Key	Value
	Transaction codes	TRANSAKTIONEN
	Transaction codes	OBCO