Example: Tax Code Determination Rules Applied on Marketing Documents

The following information is relevant for all localizations except Brazil, Canada, Chile, Costa Rica, Guatemala, India, Israel, Mexico, Puerto Rico, and United States.

The following examples illustrate how the tax code determination (TCD) rules are applied when you create a sales or purchasing document.

Tax code determination rule with line and header freight tax conditions defined

TCD rule definition			Master data
Line Tax Code	Line Freight Tax	Header Freight Tax	BP	Item
A1	A4	A5	A2	A3
Tax code proposed on document
Item Tax Code	Line Freight Tax Code	Header Freight Tax Code
A1	A4	A5

Tax code determination rule without line tax code defined

TCD rule definition			Master data
Line Tax Code	Line Freight Tax	Header Freight Tax	BP	Item
Not defined	A2	Not defined	A2	A3
Tax code proposed on document
Item Tax Code	Line Freight Tax Code	Header Freight Tax Code
A2	A2	A2

Tax code determination rule with one condition for header freight

TCD rule definition			Master data
Line Tax Code	Line Freight Tax	Header Freight Tax	BP	Item
A1	Not defined	A5	A2	A3
Tax code proposed on document
Item Tax Code	Line Freight Tax Code	Header Freight Tax Code
A1	A2	A5

Tax code determination rule without freight tax conditions defined

TCD rule definition			Master data
Line Tax Code	Line Freight Tax	Header Freight Tax	BP	Item
A1	Not defined	Not defined	A2	A3
Tax code proposed on document
Item Tax Code	Line Freight Tax Code	Header Freight Tax Code
A1	A2	A2

Tax code determination rule without freight tax conditions defined – freight tax code defined in freight setup

TCD rule definition			Master data		Freight Setup
Line Tax Code	Line Freight Tax	Header Freight Tax	BP	Item	Freight Tax Code
A1	Not defined	Not defined	Not defined	Not defined	A6
Tax code proposed on document
Item Tax Code	Line Freight Tax Code	Header Freight Tax Code
A1	A6	A6

More Information

Tax Code Determination