1:-Create Condition Type T-Code (OBQ1)
The condition type is used for different functions. In tax for example, the condition type lets you differentiate between different kinds of tax based upon tax % and tax type.
2:-Tax processing in accounting Key T-Code (OBCN)
The internal processing keys are used by the system to determine accounts or posting keys for line items which are created automatically. The processing keys are defined in the system and cannot be changed by the user.
3:-Define Tax Procedures T-Code(OBQ3)
A Tax Procedure in SAP is a configuration that outlines the sequence of steps and rules for calculating taxes in financial transactions. It includes information about tax codes, conditions, and the order in which different tax-related functions are executed. Tax procedures are essential for automating the calculation, posting, and reporting of taxes, providing a structured framework for handling various types of taxes, such as sales tax or value-added tax (VAT).
4:-Assign country To Tax Procedure T-Code(OBBG)
Assigning a country to a tax procedure in SAP involves configuring the system to use a specific tax procedure for transactions related to a particular country. This assignment is essential for complying with country-specific tax laws and regulations. By associating a tax procedure with a country, SAP ensures that the correct tax codes, rates, and rules are automatically applied during financial transactions in that country.
5:-Create Tax Related GL Accounts. T-Code(FS00)
6:-Create Tax Code T-Code(FTXP)
You have to define a separate tax on sales/purchases code for each country in which one of your company codes is located. Each code contains one or more tax rates for the different tax types. If you have to report tax-exempt or non-taxable sales to the tax authorities, you need to define a tax rate with the value 0.
Tax code is a unique identifier that represents a specific type of tax in financial transactions. Tax codes are used to automate the calculation and posting of taxes based on predefined tax rates and rules. Each tax code is associated with particular tax accounts and conditions.
Assign Tax processing to GLs for Taxes
7:-Account Determination Assign GL to Transaction Key T-Code(OB40)
Tax on sale or purchase code will be defined at account master control data tab. Here we can defined all tax code for input tax or output tax for tax procedure attached to country and company code or a single tax code.
Tax procedure is attached to country not company code, and company code is attached to country. Hence tax procedure indirectly attached to company code.
8:-Vendor Invoice T.Code (FB60)