hows does the system calculate taxes ..i mean both ... deductible and no deductible... how can go about it to check whether it has calculated or not.?
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Tax deductible or non-deductible is decided by the Account key assgned to the respective codition type in the tax procedure.
For having tax non-deductable, use the account key NVV. Please see the properties of NVV in transaction OBCN. (NVV is identified as non-deductible).