Tax code FTXP

Tags
FTXP, OB40, OBCN, OBQ1, OBQ3, TAX CODES FTXP

by Jayanth Maydipalle on December 18, 2012

Tax codes defined for each countries in SAP. Tax codes shows the actual rates to be used
while calculating the tax on the basis of tax calculation procedure. Each country can have
multiple tax codes for different types of taxes such as input, output etc.

Enter the country in pop up.

Enter tax code and tax jurisdiction code also enter validity date.

Enter the tax rates, this is the tax rate that can be used while posting an SAP document.

After creating Taxcode , we have to assign tax code to Company code in table
J_1ICONDTAX
Please use path
SPRO > Logistics general > Tax on goods mvmt > India > Determination of excise
duty > Assign tax code to company code..
You can create Tax code in Development and assign Tax code to Company code. Transport
request will not be created in FTXP creation. Again go to FTXP and Input Tax code and in
Menu use Export option. It will prompt you for Transport request. Only thing is Condition
records are Master data and cannot be Transported.
You have to manually create condition records in FV11 for Required condition types.
Configuration for Tax Code steps are
1. Maintain the Tax Procedure OBQ1

2. Maintain the Tax Processing in Accounting OBCN

3.Change View of procedure & go to control OBQ3
4. Maintain the Tax Code FTXP
5. Changing in GL Master for assign TAX Code FS00
6. GL assign to Maintain Configuration for automatic posting OB40
7. Make your posting with Tax Code.
https://scn.sap.com/thread/3143808
http://help.sap.com/erp2005_ehp_04/helpdata/en/9e/0b941b0fd64873bc54e8745fb044e7/co
ntent.htm
http://help.sap.com/saphelp_rc10/helpdata/en/0e/db7eb4e9114d85a9335fb1df617504/conte
nt.htm
http://wiki.openbravo.com/wiki/ERP_2.50:Configuration_Manual/Setting_up_taxes#Tax_C
oncepts7
http://www.itstuffs.net/2013/01/tax-settings-salespurchase-configuration.html
http://www.sapficoconsultant.com/pdf/GL%20configuration%20free%20e-book.pdf
http://www.saptechies.org/taxonsales-purchases/
Text
: Assign Tax Code to Company Codes
T-code
: S_AL0_96000329
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Tax Configuration For SAP Implementations

You are here: Home SAP Training Blog Tax Configuration For SAP
Implementations
July 18, 2012 by Pete 3 Comments

Introduction To Tax Configurations In SAP

Tax configurations are done in SAP at the country level. This is because all businesses in
the same country need to follow the same taxation policies and generally accepted

accounting principles while preparing their financial statements. Therefore, tax

configurations in SAP are done for each country. Any company code which is then created
in that country can then automatically use the tax configuration that is done for that country.
So tax configurations need not be done for each and every company code again and again.
This saves the effort required to carry out the tax configurations for every company code
separately.
SAP allows the tax rates to be defined internally or the tax rates may be fetched from an
external taxation system like Vertex. The tax configurations are stored in SAP in the form
of tax calculation procedures and tax codes. These procedures can then be assigned to
different countries. These procedures then become available to any company code which is
created in that country.
The tax rates are provided by the tax codes are the different tax types while the method of
calculation is defined in the tax calculation procedure. SAP allows the following taxes to be
processed while posting documents:

Tax on sales and purchases.

Additional taxes like VAT which our country specific.

Sales and Use tax as in USA.

Withholding tax like income tax in India.

Concept Of Tax Jurisdictions

Tax jurisdictions represent the government authorities to which the taxes are paid. SAP
allows up to 4 levels of tax jurisdictions representing state, county, city and others. The tax
jurisdiction structure needs to be defined before the tax jurisdictions can be created in SAP.
As mentioned before, the tax jurisdiction structure can have four levels. The tax jurisdiction
structure defines the length of characters which will be used to represent each level in the
tax jurisdiction code. The tax jurisdiction code structure needs to be defined for every tax
calculation procedure.
Once the tax jurisdiction code structure has been defined, the next step is to create the
actual tax jurisdiction codes. The tax jurisdiction codes need to be created for every
government authority to which the tax needs to be paid.

Assign Tax Procedure To Country

Step 1: The tax configuration details are stored in the tax procedure. The first step is to
assign the tax procedure to the country in which the company code exists. Navigate to the
Implementation Guide menu path as shown below or execute the transaction code OBBG.

Step 2: Position to the country to which the tax calculation procedure is to be assigned and
enter the tax calculation procedure details as shown in the screenshot below.

Step 3: Click on the save button to save the changes. A success message showing that the
changes have been saved is displayed.

Define The Tax Jurisdiction Code Structure

Step 1:Navigate to the implementation guide menu path as shown in the screenshot below
or execute the transaction code OBCO from the SAP easy access menu.

Step 2: Select the tax procedure for which the tax jurisdiction code structure needs to be
defined and enter the length for the various jurisdiction levels as shown in the screenshot
below. The length chosen should be sufficiently large to accommodate enough tax
jurisdiction codes as per the requirement. For e.g. the first level represents the state. If the
number of states is large then it is better to have a four letter key to represent it rather than
having a two letter key. This is because the number of combinations possible with a four
letter key will be much more than those possible with the two letter key.

Step 3: Click on the save button to save the changes. A success message indicating that the
changes have been saved is displayed.

Define The Tax Jurisdiction Codes

Step 1:Navigate to the implementation guide menu path as shown below or execute the
transaction code OBCP from the SAP easy access menu.

Step 2: Enter the work area details in the pop-up as shown in the screenshot below and
click on the continue button.

Step 3: Enter the tax jurisdiction code and its description as shown in the screenshot below.
On the basis of the configuration for the tax jurisdiction code structure, the first two letters
of the tax jurisdiction code will represent the state, the next three letters will represent the
county, and the next four letters will represent the city. Therefore, every tax jurisdiction
code will be nine characters long. It will be possible to determine the correct taxing
authority on the basis of the tax the jurisdiction code described above.

Step 4: Click on the save button to save the new tax jurisdiction code. A success message
indicating that the new tax jurisdiction code has been saved is displayed.

Define Tax Codes

The tax codes are defined for each and every country. The tax codes contain the actual rates
to be used while calculating the tax on the basis of the tax calculation procedure. Each
country can have multiple tax codes for different types of taxes like input tax sales and
purchases, output tax on sales and purchases, etc.
Step 1:Navigate to the Implementation Guide menu path as shown in the screenshot below
or execute the transaction code FTXP from the SAP Easy Access menu.

Step 2: Enter the country in the pop -up as shown in the screenshot below and click on the
continue button.

Step 3: Enter the tax jurisdiction code and the other details on the screen as shown in the
screenshot below and press the Enter key. The tax code represents the type of the tax for
which the rates are going to be maintained.

Step 4: Enter the tax rates as shown in the screenshot below. These tax rates can be used to
calculate the tax while posting a document in SAP. The method of calculation will be
determined on the basis of the tax calculation procedure.