Define Tax Codes for Sales and Purchases

Use 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. Note Do not delete or change any taxes on sales/purchases codes and their definitions as long as items with these codes exist in the system. Otherwise, the SAP system displays the tax amounts with incorrect tax rates in the corresponding reports and determines incorrect amounts during a tax adjustment for payment transactions. Standard settings SAP supplies a tax calculation procedure for each country. The procedure comprises a list of all common tax types with rules for tax calculation. In addition, example tax codes are defined for some countries. Activities 1. Check the standard tax codes for your country. Add further tax codes, if necessary. 2. Ensure that tax accounts are defined for the automatic posting of taxes. Notes on transporting tax codes When tax codes are transported, the tax rates of the tax codes are transported using auxiliary table T007V. Logical transport object FTXP is used to transport the definition data of the tax code from table T007A and the language-dependent name to table T007S. The tax accounts for the tax codes (table T030K) are not transported. The internal jurisdiction codes are also not transported. The transport of tax codes between systems or clients consists of two steps: 1. Step: Export tax codes from source system or source client 2. Step: Import tax codes into target system or target client

Export
1. In the source system or client, in Customizing for the Financial Accounting Basic Settings, choose Tax on Sales/Purchases -> Calculation -> Define Tax on Sales and Purchases Code. 2. Choose Tax Code -> Transport -> Export. 3. Assign the export to the relevant transport request and make a note of the request number. 4. Select and save the tax codes to be transported. 5. Make sure that the selected tax codes have the transport number in table T007V. To check the table, in the SAP menu choose Tools -> ABAP Workbench -> Overview -> Data Browser. Enter the table name. The tax codes are in the MWSKZ fields, the tax jurisdiction codes in the TXJCD fields.

6. Arrange the transport of the request to the target system. To transport the request, in the SAP menu choose Tools -> ABAP Workbench -> Overview -> Workbench Organizer -> Environment -> Customizing Organizer.

Import
1. Make sure that the transported tax codes are recorded in table T007V of the target system or target client. 2. In the source system or client, in Customizing for the Financial Accounting Basic Settings, choose Tax on Sales/Purchases -> Calculation -> Define Tax on Sales and Purchases Code. 3. The tax codes should have been created in the target system without a tax percentage rate by the import. Otherwise you can do this manually: In the target system, create the tax codes that do not exist there. Create the tax codes completely, but without tax percentage rates. If you use internal systems in company codes in the USA or Canada, the relevant tax jurisdiction codes should also exist. You make the settings for the tax jurisdiction code in Customizing for Financial Accounting Basic Settings under Tax on Sales and Purchases -> Basic Settings -> Define Tax Jurisdiction Codes. 4. Choose Tax Code -> Transport -> Import. 5. Check the proposed values for the transport request and country. 6. Run the import.