Taxes amount not prorated.

[Former Member]

Hi Experts,

We have configured tax for Sales and Use Tax (VS1 - Account Key). We need tax percentage to be 5% till mid November 2013. Then after that we need tax percentage of 7%.

Tax for 16-Nov-2010 to 15-Nov-2013 = 5%

Tax for 16-Nov-2013 to 31-Dec-9999 = 7%

So in configuration these tax rates are maintained with correct time slices.

But now when we bill customer with period where there is tax change in that period, system is not prorating tax amount. Here is how system is behaving

Suppose net amount it 100 - We are billing customer for period 01 Nov to 30 Nov (There is tax change starting 16th Nov).

System is applying 7% tax. it is not prorating to refect tax change.

Thanks,

Suhas.

[former_member269154]

Hi Ravi,

You mention Acount Key, so I assume you are billing in SD?

Since their are no answers, i can share what we found re IS-U Billing, on the off chance it helps given Tax is pretty central.

We did a tax change back in 2010 and found the Tax Configuration timeslice only relates to the ISU billing document creation date [so an effective from date rather than a proration date].

One scenario did require proration which was achieved using ABAP in Enhancement spot EBIA0002.  We then used ABAP in Enhancement spot EBIA0001 to determine the correct Tax code for each Time slice.

For this to work we needed to have different Tax Codes mapped to our Tax Determination Values in TE011 for the old and new Time Slices.

Hope this helps you find a solution.

Best wishes

Neill

[Former Member · Accepted solution]

Hi ,

         you need to maintain time slices in the following path

CA/AR/AP--Basic function ---posting and Documents --Document --Maintain Document assignments --Define Sales/purchase Tax Determination .

[Former Member]

Hi,

I tried doing this. But some how whatever changes I make here, they are not reflected. system allows me to make changes in SPRO, but when I go back in SPRO changes are wiped out. Any idea what's wrong?

[Former Member]

Hi ,

            I think you are trying to maintain values for the same  tax code where the time slices overlap .for example if you had

tax code A1 = from nov-2010 to 14 Nov 2013 =5% in FI (R/3) and you changed the time slice in FI

tax code A1 = from 15 nov-2013 to Dec 9999   = 7% 

and you want to maintain the same in the above path , it would  let you save with NO effect , because time slice in the customizing in FI -CA are overlapping .

Create a new tax code A2 =from nov-2013 to Dec 9999   = 7%

and then in the customizing

country         tax determination id       valid from       tax code(FI)              valid to date

IN                    E1                                 NOV-2010       A1                  14-NOV 2013

IN                    E1                            15- NOV-2013      A2                      DEC 9999

Note - when you maintain the second tax code , the first tax code valid to date will automatically change to one day less than the valid from date in the new tax code  .

[Former Member]

Thanks for your response. Does this mean that we have to update this new tax code in EK02 as well? Or the tax determination ID will remain as is.

Here I am not able to differenciate between tax determination ID and tax code.

Can you please further clarify how these two things are linked and how where we configure tax code (I guess FTXP) and where we configure tax determination ID?

[Former Member]

Hi ,

          1) Tax code is not updated in EK02, tax determination id are. In your case you dont have to change the tax determination id in EK02.

          2) you are not able to differentiate your tax determination id and Tax code because you have defined both to be same i.e tax determination id = V1  and also Tax code =V1 .

          3)  Tax determination id is defined and allocated to tax code in the path i have mentioned above

CA/AR/AP--Basic function ---posting and Documents --Document --Maintain Document assignments --Define Sales/purchase Tax Determination .

For how tax determination id  and tax code are related see the below screen shot

[Former Member]

Thank you very much. This clears everything.