Configuration Settings for Determining IPM
Input Tax
Tax-Relevant Master Data
Product
The product is the central component for defining tax-relevant data and therefore for determining the tax relevance of a contract item. You can influence data used in the area of Intellectual Property to determine the tax percentage rate or indicators for each country and region using the note on the tax type and tax group. You can use the tax group used for this product to determine a full, half or no tax percentage rate.
Make the following setting:
SAP Menu (SAP CRM) |
Setting |
Master Data ® Products ® Maintain Categories and Hierarchies |
Assign the set type CRMM_PR_TAX Product Taxes to your product hierarchy for Intellectual Properties, so that you can edit the tax data in the Intellectual Property. |
Enter the tax data in the Intellectual Property:
SAP Menu (SAP CRM) |
Setting |
Industries ® Media: Intellectual Property Management ® Master Data ® Products ® Maintain IP Product. |
Enter the tax type and tax group for each country and region. Example: Country = DE Region = blank Tax type = VAT Tax group = FULL |
The tax-relevant data in the CRM product master is not identical to the tax-relevant data managed in the ERP System. If the tax group in CRM is defined by a word (such as NONE, FULL), this is defined by a number (such as 0.1) in the corresponding tax classification field in ERP.
A mapping table transfers the control parameters and transfers the conversion of the parameters that are not identical in the CRM and ERP Systems.
You edit an assignment table in CRM that converts the ERP tax category and the tax classification to the CRM tax group.
You must ensure that this table is complete, since you cannot otherwise transfer the product data (see also the unit Assign Tax Groups to SAP ECC Tax Classifications (Product) in this document).
Business Partner: Sales
In addition to the product, the business partner also defines the tax relevance of a contract item. The business partner, who defines the tax relevance in CRM, is the ship-to party. You can assign a different business partner here for individual customers (BadI implementation for TAX_PARTNER_SELECT).
Make the following setting:
Customizing Activity (SAP CRM) |
Setting |
SAP Implementation Guide ® Customer Relationship Management ® Basic Functions ® Taxes ® Transactions ® Partner Determination ® Add-In: Determination of Taxable Business Partner |
If the system is to use the sold-to party or the payer for tax determination, you can record the corresponding logic to define the tax-relevant partner in this Business Add-In. This Business Add-In is available to the business partners in the partner functions Sold-to Party, Ship-to Party, Bill-to Party and Payer and the Recipient Country and Region. |
As is also the case during processing in the product master, you can assign the respective tax type and tax group to a business partner for each country and region.
Enter the tax data for the business partner:
SAP Menu (SAP CRM) |
Setting |
Master Data ® Business Partners ® Maintain Business Partner |
Choose the role for the General Business Partner. Switch to the Central Data tab page. Enter the tax type and tax group for each country and region. Example: Country = DE Region = blank Tax type = VAT Tax group = FULL You can also specify the tax category and the corresponding tax number. Example: Tax category = DE0 sales tax ID number for Germany and Tax number = DE123456789 |
You edit an assignment table in CRM that converts the ERP tax category and the tax classification to the CRM tax group.
You must ensure that this table is complete, since you cannot otherwise transfer the product data (see also the unit Assign Tax Groups to SAP ECC Tax Classifications (Business Partner) in this document).
Business Partner: Sales Organization
The system uses the sales organization in the contract as the issue destination to determine taxes in the business transactions. The country defined in the issue destination is used as the basis for the tax calculation. This ultimately determines whether sales or VAT tax calculation is performed.
In addition to the country, additional data that is relevant for determining taxes is recorded on the Identification tab page. The tax classification defines the tax type and tax group for the respective country.
Enter the tax data for the business partner:
SAP Menu (SAP CRM) |
Setting |
Master Data ® Business Partners ® Maintain Business Partner |
Choose the Organizational Unit role for the sales organization. Switch to the Address tab page. Enter the country. Example: Country = DE Germany Switch to the Identification Data tab page. Enter the tax type and tax group for each country and region. Example: Country = DE Region = blank Tax type = VAT Tax group = FULL |
Basic Principles on Tax Determination in CRM Transactions
Contract: Tax Groups
As is also the case in standard SAP pricing, the tax groups in the sales document, which you have recorded for the business partner and the product, determine the percentage rate for taxes. Condition rates, whose access sequences use these groups as a key, are recorded in the system for this.
The standard access sequence MWST, which was set up in ERP and transferred to CRM automatically, is relevant to this.
A general tax exemption for business partners, as is the case for trade with ship-to parties located abroad or in free trade zones, is managed using the tax code in the business partner master for the ship-to party. If this indicator has the “No tax” characteristic, the system uses the tax percentage rate 0 for the respective case involved.
Business Partner
You can define a business partner who is not the same as the ship-to party using the Customizing taxes in the system. In this case, the system determines taxes taking account of this business partner (see also Business Partner: Sales unit in this documentation).
Pricing
The conditions 0TTE (tax percentage separate) and 1TTE (tax percentage included) are required for tax determination using the Transaction Tax Engine (TTE). These are supplied in the standard CRM Customizing settings.
Use a pricing procedure for pricing, which contains the TTE trigger condition 0TTE or 1TTE. You should assign calculation formula 11000 to these conditions (see also Customizing: Calculation Procedure in this document).
Business Transaction
The CRM System is generally only used to manage output tax-relevant transactions.
However, in some industries such as media, purchasing transactions are managed in which it is also necessary to determine an output tax.
These require tax determination (TTE) to be informed about the direction in which tax determination is to be active for the respective purchasing or sales transactions.
To do so, the transaction type (sales/purchasing) is determined and the TTE result is shown using a variable (direction indicator). This variable uses the corresponding queries in the decision tree to trigger sales or purchasing events, which in turn determine the correct tax percentage rate or tax code during subsequent processing within the TTE.
Billing Document
Contracts are billed using the Billing Engine (BE) in CRM. Tax determination is performed using the TTE functions, as is also the case for the contract.
If the tax data in the contract is determined during the runtime and the result is not saved in the contract, the system records the result of TTE tax determination persistently in the billing document. This can be accessed at any time, even in the display mode.
You must use a separate pricing procedure for pricing in the billing document, which must meet the same prerequisites (trigger condition, formulas etc.) as the pricing procedure used in the contract.
Customizing
Settings in Customer Relationship Management (CRM)
You make these settings in Customizing for CRM using the SPRO transaction.
Create Pricing Procedure
Customizing Activity (SAP CRM) |
Setting |
SAP Implementation Guide ® Customer Relationship Management ® Basic Functions ® Pricing ® Define Settings for Pricing ® Create Pricing Procedure |
Separate pricing procedures are used in the contract and billing document. The following pricing procedures are supplied in the standard system: For license acquisition with license sales 17IPM1 IPM Acquisition 17IPM3 IPM Acquisition Billing Document For license acquisition with product sales 17IP10 IPM “Acquisition with ProdSale“ 17IP11 “PM Acq.Billing Doc with ProdSale” The condition 0TTE in tax line 915 is used to determine tax here. Alternatively, you can also use the condition 1TTE here. This would perform tax determination percentage included. The condition 0TTE determines the tax amount percentage separate. Define the trigger condition as statistical and mandatory. Continue to compare basic formula ‘2’ (basis = net value). |
Determine Pricing Procedure
Customizing Activity (SAP CRM) |
Setting |
SAP Implementation Guide ® Customer Relationship Management ® Basic Functions ® Pricing ® Pricing in the Business Transaction ® Determine Pricing Procedures |
Enter the corresponding entries for determining the pricing procedure. Determining the pricing procedure can be dependent on the following: o Sales organization o Distribution channel o Document pricing procedure (can be assigned to a sales transaction at the third level) o Customer procedure (assignment in the business partner master) |
Define Tax Type and Tax Groups
Customizing Activity (SAP CRM) |
Setting |
SAP Implementation Guide ® Customer Relationship Management ® Basic Functions ® Taxes ® Basic Settings ® Tax Types and Tax Groups ® Define Tax Types and Tax Groups |
In this IMG activity, you define the tax types, business partner tax groups and product tax groups. These correspond to the tax classifications in SAP ERP, which are used in the material and customer master records, and can also be used by tax condition rates. Example for Country = DE Germany Tax types: Country = DE Tax type = VAT Business partner tax groups: Country = DE Tax type = VAT Tax group = FULL and NONE Product tax groups: Country = DE Tax type = VAT Tax group = FULL, HALF and NONE |
Assign Tax Groups to SAP ECC Tax Classifications (Product)
Customizing Activity (SAP CRM) |
Setting |
||||||||||||||||||||
SAP Implementation Guide ® Customer Relationship Management ® Basic Functions ® Taxes ® Basic Settings ® Tax Types and Tax Groups ® Assign Tax Groups to SAP ECC Tax Classifications (Product) |
In this IMG activity, you assign the SAP CRM product tax groups to the corresponding tax classifications from the SAP ECC material master.
|
Assign Tax Groups to SAP ECC Tax Classifications (Business Partner)
Customizing Activity (SAP CRM) |
Setting |
|||||||||||||||
SAP Implementation Guide ® Customer Relationship Management ® Basic Functions ® Taxes ® Basic Settings ® Tax Types and Tax Groups ® Assign Tax Groups to SAP ECC Tax Classifications (Business Partner) |
In this IMG activity, you check that the tax groups for the SAP CRM business partner have been assigned to the correct tax classifications from the SAP R/3 customer master.
|
Assign Tax Transaction Key
Customizing Activity (SAP CRM) |
Setting |
SAP Implementation Guide ® Customer Relationship Management ® Industry-Specific Solutions ® Media ® Intellectual Property Management ® Billing and Settlement ® Integration with Accounting ® Transfer to Accounts Payable Accounting (FI-AP) ® Assign Tax Transaction Key |
In this IMG activity, you assign the combination of the tax condition type and tax calculation procedures to a tax transaction key. These account keys for tax lines are used in ERP to determine the account and posting key for tax lines in accounting documents. Example for Country = DE Germany Direction indicator = 2 Tax type = VAT Calculation procedure = 200002 Posting indicator = initial Tax transaction key = VST |
Assign Tax Codes
Customizing Activity (SAP CRM) |
Setting |
SAP Implementation Guide ® Customer Relationship Management ® Industry-Specific Solutions ® Media ® Intellectual Property Management ® Billing and Settlement ® Integration with Accounting ® Transfer to Accounts Payable Accounting (FI-AP) ® Assign Tax Codes |
In this IMG activity, you assign various default tax codes and other specific
tax codes to various Countries of
Departure for tax, which are to be used when billing documents are
transferred from CRM Billing to ERP Accounting. Example for Country = DE Germany Assign the following default tax codes to the country of departure DE = Germany: Tax code 0% = A0 Tax code = A1 Enter the dependent entries described in the following table for the tax code. |
Table 1: Dependent Entries for the Tax Codes A0 and A1 for the Country of Departure Germany for the Transfer and Accounts Payable Accounting (FI-AP)
Tax Category |
Direction Indicator |
Tax Event |
Tax Type |
Tax Rate ID |
Posting Indicator |
Tax Code |
1 |
2 |
200 |
VAT |
FULL |
Initial |
V1 |
1 |
2 |
200 |
VAT |
NONE |
Initial |
V0 |
Settings in the Tax Transaction Engine
Define Tax Location
Customizing Activity (SAP CRM) |
Setting |
SAP Implementation Guide ® Cross-Application Components ® Transaction Tax Engine ® Tax Maintenance Settings ® Tax Location ® Define Tax Location |
In this IMG activity, you define the tax location, and assign a community if necessary. The system only supports EU. Example for Country = DE Germany Community Valid from = 01.01.2000 Valid to = 31.12.2099 Community = EU |
Define Decision Tree Variant Fields
Customizing Activity (SAP CRM) |
Setting |
SAP Implementation Guide ® Cross-Application Components ® Transaction Tax Engine ® Technical Settings ® Define Decision Tree Variant Fields for Withholding Tax |
In this IMG activity, you define: o Field catalog variant o Fields available for the field catalog variant for the decision tree for tax event determination Example for Germany:: Activate the following fields in the field catalog variant “VAT” (field catalog VAT) according to the table below for the decision tree type "TXDT". |
Table 3: Fields to be Activated for the Decision Tree Type "TXDT" in the Field Catalog Variant “VAT” (Field Catalog VAT)
Parameter |
Field Used |
Field Usage |
BusinessProcess |
X |
1 Test fields |
BusinessTransaction |
X |
1 Test fields |
Community |
X |
1 Test fields |
Country |
X |
1 Test fields |
DirectionIndicator |
X |
1 Test fields |
ExemptedRegion |
X |
1 Test fields |
ExemptedRegionStatus |
X |
1 Test fields |
OrgUnitValue |
X |
1 Test fields |
OwnPartnerID |
X |
1 Test fields |
PartnerID |
X |
1 Test fields |
PartnerTaxGroup |
X |
1 Test fields |
PartnerTaxNumber |
X |
1 Test fields |
PartnerTaxability |
X |
1 Test fields |
ProductTaxGroup |
X |
1 Test fields |
ProductTaxability |
X |
1 Test fields |
Region |
X |
1 Test fields |
TaxEvent |
X |
3 Target field |
TaxFromRole |
X |
3 Target field |
TaxTariffCode |
X |
1 Test fields |
TaxToRole |
X |
3 Target field |
TransactionPropertyValue |
X |
1 Test fields |
UsageShipTo |
X |
1 Test fields |
Define Tax Settings
Customizing Activity (SAP CRM) |
Setting |
SAP Implementation Guide ® Cross-Application Components ® Transaction Tax Engine ® Tax Maintenance Settings ® Tax Determination and Calculation ® Define Tax Settings |
In this IMG activity, you define: o The tax type and characteristics for the tax type (such as the country, tax group and deductibility reason, etc.) o Tax events and characteristics for the tax events (such as assigned countries tax types and pricing procedures) o Product usage indicator Example for Country = DE Germany Make the additional settings for the standard Customizing settings, which are described in the following tables. |
Table 2: Additional Tax Events for Country Germany (DE)
Tax Event |
Non-Taxable |
Direction |
EU Triangle |
Description |
20 |
X |
2 Incoming |
|
Input tax, not taxable |
200 |
|
2 Incoming |
|
Input tax – Domestic acquisition |
Table 3: Assign a Tax Type to Tax Event 200 for Country Germany (DE)
Tax Type |
Description |
VAT |
Tax on sales/purchases |
Table 4: Assign a Tax Calculation Procedure to Tax Event 200 for Country Germany (DE)
Valid To |
Valid From |
Pricing Procedure |
Procedure |
31.12.9999 |
01.01.2000 |
200002 |
Input tax VAT 1 |
Define Tax Event Determination
Customizing Activity (SAP CRM) |
Setting |
||||||||
SAP Implementation Guide ® Cross-Application Components ® Transaction Tax Engine ® Tax Maintenance Settings ® Tax Determination and Calculation ® Define Tax Event Determination |
In this IMG activity, you define rules for tax determination under the decision tree usage. You must define a specific decision tree for the requirements of IPM tax determination. This contains the queries/results required for both acquisition and sales contracts. The settings required are found in the example below.
|
Assign Tax Event Determination and Calculation Rules
Customizing Activity (SAP CRM) |
Setting |
SAP Implementation Guide ® Cross-Application Components ® Transaction Tax Engine ® Tax Maintenance Settings ® Tax Determination and Calculation ® Assign Tax Event Determination and Calculation Rules |
The settings you make in this IMG activity define tax event determination and the calculation procedure. You make these settings for each country. This activity contains the following sub activities: o Assign decision tree Decision trees, which have been defined in the Define Tax Event Determination IMG activity, are available to you. o Assign tax procedures o Assign reporting currency and additional sub activities. Example for Country = DE Germany Make the settings described in the following tables. |
Table 5: Assign Decision Tree for Country Germany (DE)
Valid To |
Valid From |
Decision Tree ID |
Description |
31.12.9999 |
01.01.2000 |
IPM_EU_DE |
IPM Germany |
Table 6: Assign Tax Calculation Procedure for Country Germany (DE)
Pricing Procedure |
Extended Assignment |
Pricing Procedure |
100001 |
|
Output tax VAT |
200002 |
|
Input tax VAT 1 |
Table 7: Assign Reporting Currency for Country Germany (DE)
Valid-to Date |
Currency Unit |
31.12.2001 |
DEM |
31.12.9999 |
EUR |
Define Business Partner Taxability
Customizing Activity (SAP CRM) |
Setting |
SAP Implementation Guide ® Cross-Application Components ® Transaction Tax Engine ® Tax Maintenance Settings ® Tax Determination and Calculation ® Define Business Partner Taxability |
In this IMG activity, you define the business partner taxability. This classifies a business partner for tax determination. The business partner taxability can be used in the tax event decision tree. The following settings are supplied in the standard system: 100 Company 200 Natural Person |
Define Product Taxability
Customizing Activity (SAP CRM) |
Setting |
SAP Implementation Guide ® Cross-Application Components ® Transaction Tax Engine ® Tax Maintenance Settings ®Tax Determination and Calculation ® Define Product Taxability |
In this IMG activity, you define the product taxability. You classify a product according to tax factors. The product taxability can be used in the tax event decision tree. The following settings are supplied in the standard system: 100 Product 200 Service 300 Exchange |
Define Tax Code and Account Determination Key
Customizing Activity (SAP CRM) |
Setting |
SAP Implementation Guide ® Cross-Application Components ® Transaction Tax Engine ® Tax Maintenance Settings ® Tax Determination and Calculation ® Define Tax Code and Account Determination Key |
In this IMG activity, you define the tax code and the account determination key used to transfer CRM invoices to ERP for tax reporting. Example for Country = DE Germany 1.
Insert a new account determination key for input tax |
Table 8: Tax Code for Country Germany (DE)
Tax Code |
Valid-to Date |
Valid-From Date |
Description |
V0 |
31.12.9999 |
01.01.1990 |
VAT, incoming 0% |
V1 |
31.12.9999 |
01.01.1990 |
VAT, incoming 16% |
V2 |
31.12.9999 |
01.01.1990 |
VAT, incoming 7% |
Table 9: Tax Events for Tax Code V0
Tax Event |
Default |
Description |
20 |
X |
Not taxable |
Table 10: Rates and Parameters for Tax Code V0
Tax Type |
Valid-to Date |
Tax Rate ID |
Valid-From Date |
Account Det.Key |
Non-Ded.Rate ID |
Posting Indicator |
|
31.12.9999 |
|
01.01.1996 |
VST |
|
|
Table 11: Tax Events for Tax Code V1
Tax Event |
Default |
Description |
200 |
X |
Input tax – Domestic acquisition |
Table 12: Rates and Parameters for Tax Code V1
Tax Type |
Valid-to Date |
Tax Rate ID |
Valid-From Date |
Account Det.Key |
Non-Ded.Rate ID |
Posting Indicator |
VAT |
31.12.9999 |
FULL |
01.01.1996 |
VST |
NONE |
10 |
Table 13: Tax Events for Tax Code V2
Tax Event |
Default |
Description |
200 |
X |
Input tax – Domestic acquisition |
Table 14: Rates and Parameters for Tax Code V2
Tax Type |
Valid-to Date |
Tax Rate ID |
Valid-From Date |
Account Det.Key |
Non-Ded.Rate ID |
Posting Indicator |
VAT |
31.12.9999 |
HALF |
01.01.1996 |
VST |
NONE |
10 |
Maintain Tax Rates and Exemptions
Customizing Activity (SAP CRM) |
Setting |
SAP Implementation Guide ® Cross-Application Components ® Transaction Tax Engine ® Tax Maintenance Settings ® Tax Determination and Calculation ® Exemptions and Tax Rates ® Maintain Tax Rates and Exemptions |
In this IMG activity, you define the exemptions, tax rates and deductibility for each country and tax type. Example for Country = DE Germany Enter the condition rates described in the following table for the country DE = Germany, tax type VAT and access sequence 130 = product tax group/partner tax group |
Table 30: Condition Rates for Country DE = Germany, Tax Type VAT and Access Sequence 130 = Product Tax Group/Partner Tax Group
BP Tax Group |
Product Tax Group |
Amount/Percentage |
Currency (%) |
per |
Tax Rate ID |
From |
To |
FULL |
FULL |
16.000 |
% |
0 |
FULL |
01.01.1990 |
31.12.9999 |
NONE |
FULL |
0.000 |
% |
0 |
NOBP |
01.01.1990 |
31.12.9999 |
FULL |
HALF |
7.000 |
% |
0 |
HALF |
01.01.1990 |
31.12.9999 |
NONE |
HALF |
0.000 |
% |
0 |
NOBP |
01.01.1990 |
31.12.9999 |
FULL |
NONE |
0.000 |
% |
0 |
NOP |
01.01.1990 |
31.12.9999 |
NONE |
NONE |
0.000 |
% |
0 |
NOBP |
01.01.1990 |
31.12.9999 |
Assign Objects From External Systems
Customizing Activity (SAP CRM) |
Setting |
SAP Implementation Guide ® Cross-Application Components ® Transaction Tax Engine ® Utilities ® Assign Objects From External Systems |
In this IMG activity, you define the way in which objects from external systems are compared with existing objects in the TTE System. You must perform this Customizing activity after every upgrade so that you can ensure that the condition rates are complete and correct. The CRM System is connected to an ERP System. This system was defined in the first activity (Define External System IDs). A different tax code was defined in each system. 1. Enter the ID of the calling system. This must be the name of the logical system from table T000. 2. Choose the object that you want to assign. 3. Enter the necessary data. 4. Choose Save. Example for Country = DE Germany Enter the external system ID, such as DMMCLNT771. Make the entries described in the following tables. |
Table 15: Assign a Tax Type to External System ID for Country Germany (DE)
Country |
External Tax Type |
Tax Type |
DE |
VAT |
VAT |
Table 16: Assign Account Determination Key to External System ID
External Account Determination Key |
Account Det.Key |
MWS |
MWS |
VST |
VST |
Table 17: Assign Tax Code to External System ID for Country DE = Germany
Country |
External Tax Code |
Valid-to Date |
Valid-From Date |
Tax Code |
DE |
A0 |
31.12.9999 |
01.01.1990 |
A0 |
DE |
A1 |
31.12.9999 |
01.01.1990 |
A1 |
DE |
A2 |
31.12.9999 |
01.01.1990 |
A2 |
DE |
V0 |
31.12.9999 |
01.01.1990 |
V0 |
DE |
V1 |
31.12.9999 |
01.01.1990 |
V1 |
DE |
V2 |
31.12.9999 |
01.01.1990 |
V2 |
Settings in SAP ERP
Make the following settings in Customizing for ERP using the SPRO transaction.
Assign Country to Calculation Procedure
Customizing Activity (SAP ERP) |
Setting |
SAP Customizing Implementation Guide ® Financial Accounting ® Financial Accounting Global Settings® Tax on Sales/Purchases ® Basic Settings ® Assign Country to Calculation Procedure |
In this IMG activity, you enter the key for the calculation procedure for each country, which defines the conditions that are admissible for each document and the sequence of conditions in the document. Example for Country = DE Germany Enter the calculation procedure TAXD for the country DE = Germany.. |
Define Tax Codes for Sales and Purchases
Customizing Activity (SAP ERP) |
Setting |
SAP Customizing Implementation Guide ® Financial Accounting ® Financial Accounting Global Settings® Tax on Sales/Purchases ® Calculation ® Define Tax Codes for Sales and Purchases |
In this IMG activity, you define your own tax code for sales and purchases for each country in which one of your company codes is located. Each indicator contains one of more tax rates for the different tax types. If you want to report tax-exempt or non-taxable sales to the authorities, define a tax rate with the value 0. Example for Country = DE Germany Enter the following tax rates for the country DE = Germany, calculation procedure TAXD and tax type V: 1. Tax rate Tax code = V0 Tax category = input tax Account determination key = VST Tax percentage rates: 0 2. Tax rate Tax code = V1 Tax category = input tax Account determination key = VST Tax percentage rates: 15.000 |