Could you please tell me the steps to configure currency and tax in the system
I tried configuring tax. However was getting error with respect to tax jurisdiction.
Could sombody help me on this...
Following are the steps for tax fonfiguration:-
1.Check W.Tax Countries
2. Define Official Witholding Tax Codes
3. Define Business Place (If more than one TAN No.)
4. Assign factory calendar to Business Place
5.Define W.Tax type for Invoice Posting and Payment Posting
6. Define W.Tax Code for Invoice Posting and Payment Posting
7.Check Receipiant Types
8. Maintain Tax due dates
9. Maintain surcharge calculation method
10.Maintain Surcharge rates
11.Assign tax types to company code
12. Create GL Account - Withholding tax
13. Assingment of GL Account to Withhold tax
14. Maintain Document types for challan updatation
15.Maintain Number ramges group (SAP script forms)
16.Assign Number ranges to number group
17. Maintain number ranges
18. Assign TDS Number in Global Parameters
19. Assign Tax codes in Vendor Master
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A currency is SAP is donated by 3 characters like INR for indian rupee.
A currency is defined in SAP using the IMG Path
> check exchange rate
Different types of currency are
Local Currency: Defined to mention in which currency you will be maintaining the accounts. It is also called as Comapny Code Currency.
Group Currency: It is defined at client level.
Account Currency: Defined in which an account is maintained.
SAP use Condition method to calculate taxes. It make use of Tax Codes for calculating the quantity of tax.
Tax Code is the starting point in the tax calculation. It is country specific. Every country has a country specific tax procedure defined in the standard system. The system use the tax code to verify the 1) Tax type 2) Amount of Tax 3) GL account for posting.
Tax Code is assigned to a Tax Procedure which is tagged to a GL master record.
Tax Procedure contains the following
STEPS : determine the sequence of the lines within the procedure
Condition Type: How the tax calculation model will work.
Reference steps: From where system will obtain the amount
Account & Processing Keys Provide the link between tax procedure and GL account. This will help in Automatic tax account assignment.
Hope you will find this useful.
Please assign points if helpful.