Maintaining Tax Jurisdiction Code Condition Records  

Use

In this procedure, you maintain the tax jurisdiction code condition records that are necessary for determining the tax code. The tax code in combination with the tax jurisdiction code determines the tax rate.

The tax jurisdiction code condition record is created for condition type UTXJ and country US. For every region in which taxes are calculated, you must create a tax jurisdiction code condition record.

For each tax jurisdiction code condition record, you maintain the following:

·       Region (state)

·       Tax classification for material (0 or 1)

·       Tax classification for customer (0 or 1)

·       Tax code

Procedure

To create condition records, from the SAP Easy Access screen, choose Logistics ® Sales and Distribution ® Master Data ® Conditions ® Create or Change ® Taxes ®Canada/USA. You can also use transaction VK11. Enter US in Country and UTXJ in Condition Type. Enter the combinations for region, customer tax classification, material tax classification, and tax code.

Even exempt status must be assigned a tax code. The entry for the tax code contains the tax rate 0.0%.

Example

For country US and condition type UTXJ, you maintain the following entries:

Region	Tax classification for customer	Tax classification for customer	Tax code
PA	0	0	S0
PA	1	0	S0
PA	0	1	S0
PA	1	1	S1