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Sunday, August 26, 2012

Size wise tax classification in SAP (IS-AFS)

In the typical apparel and footwear business world it is common to have different tax rates for different size ranges. For example, some countries have reduced tax rate for kid's sizes where as adult sizes are fully taxed. Therefore this functionality has been built in SAP AFS (IS-AFS) to maintain size wise prices as well as size wise tax classifications.

As we all know, the tax rate (Eg: 18%, 10%) in the sales order is determined based on the tax condition master record maintained in transaction VK11. This record is maintained for the combination of customer tax classification and material tax classification. Customer tax classification is maintained in the customer master / sales area data / Billing Documents tab. In the standard SAP environment, you maintain the material tax classification in the material master "Sales: Sales Org. Data 1" tab. But in that field you do not have a provision to maintain tax classifications per each size.

Therefore SAP has provided a solution to maintain tax classifications at size level based on Grid control data. This is available only in SAP AFS (IS-AFS).

If you're looking for tax account determination in SAP, please click here.

Happy Reading!!

Please feel free to post your suggestions, feedback and comments!

3 comments:

  1. is that true that in SAP Purchase Order using the highest tax rate in 1 PO if there is any several tax rate apply? ex. 5% & 10%, so the system will use the 10%

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  3. It is comprehensive and before TurboTax it took me a full week to prepareour taxreturns. WIth TurboTax it takes an evening.

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