Maintaining Material Master Tax Indicator (MM) 

Use

The tax classification indicator on the material master provides the taxability of the material for every purchasing transaction. This indicator and the ship-to/ship-from jurisdictions provide the information necessary to calculate the sales or use tax.

Prerequisites

The material tax classification indicators have been created in Configuring Material Master Data (MM).

Procedure

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      1.      To enter the material tax classification indicator in the material master record, from the SAP Easy Access screen, choose Logistics ® Sales and Distribution ® Master Data ® Products ® Materials (select one such as Trading Goods) ® Create/Change. You can also use transaction MM01 to create or MM02 to change.

      2.      Choose Select View ®Purchasing.

      3.      Enter data as required in the field Tax ind. f. material.