S4C Control the Tax by Distribution Channel

[Sheila_Regine_N]

Hi,

In relation to https://answers.sap.com/questions/13244102/sales-area-tax-classification-in-customer-master-d.html

We're doing Service Contracts in S4C, and we would like to know how can we can control the tax.

Tax is based on the VK12 configuration CTC and MTC combination. However, we have some customers where they are exempted from tax in a different distribution Channel of the same country.

We tried changing the CTC per sales area where customer is extended to, but they are all the same.

We tried changing the MTC also per distribution channel, but still whatever change we do in 1 DC, it gets carried to the other DC.

Any advice?

regards,

Sheila

[Enda]

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[Tom_Wei · Accepted solution]

Hi Ng

The answer is the tax classification is based on client, customer number, departure country of sales org, tax category TTX1. It has nothing to do with the sales area even it is show in sale area data. It means it work as design.

In sales order they open the alternative classification on the header for customer. But we do not open it on service contract. My recommendation to you is to create a new condition table like below and add this table on access sequence TTX1.

So here instead of using different customer tax classification, you could easily extend the condition tables by an additional two fields.

• Sales Organization/Distribution Channel / Departure Country / Customer Tax Class / Material tax classification
• Departure Country / Customer Tax Class / Material tax classification

In this case you could find different tax rates/tax codes based on the Sale Organization/Distribution Channel, while still having the customer as ‘1 – Full Tax relevant’. You could change the description in maintain tax relevance for customer SSCUI

Best Regards

Tom