What is SAP tax category?

What is SAP tax category?

Document entry. When you enter the document in SAP, it is tax category that controls the existence of a Tax Code field on the document entry screen. Tax category = “*”. In this case, any tax code will be allowed.

Where to define tax category in sap?

Go to Business Partner (BP) in general role, click on Identification Tab, under tax numbers enter the category which you have created and click on save. See here it is showing tax category which was crated by us. i.e ZIN1. You can create more tax categorise based on your requirement.

What is SAP tax code?

Tax code in SAP is an object that determines the tax treatment of certain transaction. It also drives the postings generated be the system when the tax code is used. Generally speaking, there are two types of taxes that are relevant to SAP Finance postings: withholding tax and sales tax.

How do I create a tax category in SAP?

How to create Tax number category of Business Partner?

1. Click on new entries, enter the tax category code and text & click on save.
2. Note: You should follow 2 digit country code (As per ISO) and sequence number.
3. Enter your category code & select On if required duplicate check and click on save.

What is tax procedure in SAP FICO?

You can maintain tax calculation procedures in SAP by following one of the navigation method. Transaction code: – OBYZ. Menu Path: – SPRO –> IMG –> Financial Accounting (New) –> Financial Accounting Global Settings (New) –> Tax on sales/purchases –> Basic settings –> Check calculation procedure.

What is SAP tax process?

SAP uses Condition Method technique to calculate taxes (except Withholding Tax) in the system. Tax Calculation Procedures (defined in the system) together with the Tax Codes are used in calculating the amount of tax. The Tax Code is the first step in the tax calculation procedure.

How do I set tax code in SAP FICO?

How to Create tax codes in SAP – FTXP

1. Step 1: – A pop up screen will be open asking for country key that you are configuring for.
2. Step 2: – Enter new tax code in the tax code field and enter.
3. Step 4: – Enter tax rate in the tax.percent.rate field.
4. Choose save icon to save the data.

How do I create a tax code in SAP?

Define a tax code.

1. From the SAP Business One Main Menu, choose Administration Setup Financials Tax Tax Codes .
2. In the Code field, specify the tax code, and in the Description field, describe the tax code.
3. From the Tax Type Combination dropdown list, select the tax type combination you defined earlier.

How do I set default tax code in SAP b1?

Setting Up Default Tax Codes in Purchasing and Sales Documents

1. Define an item category. From the SAP Business One Main Menu, choose Administration Setup Inventory Item Groups .
2. Define a tax code determination. From the SAP Business One Main Menu, choose Administration Setup Financials Tax Tax Code Determination .

How does SAP calculate tax?

SAP uses a technique called Condition Method to calculate taxes (except Withholding Tax) in the system. The system makes use of Tax (Calculation) Procedures defined in the system together with the Tax Codes for calculating the quantity of tax. The Tax Code is the starting point in the tax calculation.

What is SAP Tax Code?

Tax codes are sequenced collections of one or more tax components that define the tax rates applied on line items and how to calculate the tax amount. Only one tax code can be applied on a line item. Tax codes are used in the enhanced tax engine configuration and also in third-party tax calculation systems.

What is SAP FICO tax?

Tax calculation. The system calculates tax amounts with or without cash discount based on the tax base amount. Tax codes are used to calculate and check the amounts. Tax posting. The system posts the tax amounts to defined tax accounts.