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Former Member
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Dear SAP gurus,

Is there any link between Purchase pricing procedure and taxing procedure.

if so where?


Fayazuddin Syed.

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Answers (3)

Answers (3)

Active Contributor
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Whenever you use Nondeductible tax codes, the Tax amount is captured in this Condition type NAVS / NAVM

The amount in this Condition type will be posted onto the material account.

NAVS is the condition type in Purchasing PP linked to Tax PP

The tax codes for whcih the tax rates have been maintained for the Acct Key - NVV & NAV are termed as non deductible taxes.

You can check the Condition types assigned to this key in Taxing procedure assigned to the Country key.

SPRO-> Financial Accounting (New)-> Tax on Sales/Purchases-> Basic Settings-> Check Calculation Procedure.

Thanks & Regards


Former Member
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In addition to what Kishore has mentioned, the Base price which is entered in the PO is taken as the base amount for the tax procedure and based on the tax code(which contains the tax percentage)entered in the PO, the tax procedure will calculate the tax amount and the same is sent back to the pricing procedure(which is captured in one of the condition type) and depending upon your pricing procedure, the net price is calculated and displayed.

Hope it answers.


Former Member
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In PO, Taxes are maintained using Tax codes.

In the tax code we maintain the tax rates

Calculation of taxe rates is based on the Taxing procedure.

We maintain only some of the Condition types whcih are used both in Taxing procedure as well as Pricing procedure

So you can sya that tax code are one of the main link between Pricing & tax ing procedure