1660610 - Product Category Tax Classification in Purchase Order or Shopping Cart

SAP Knowledge Base Article - Public

1660610 - Product Category Tax Classification in Purchase Order or Shopping Cart

Symptom

Wrong tax rate type determined in tax calculation even though a tax classification is maintained for this product category in the common task Tax Classification for Free-Text Items (work center Purchase Requests and Orders).

Cause

More than one rule in the product category tax classification is applicable in a scenario. This can occur in case a rule for a specific product category exists and in parallel a general rule for the same country (wildcard for product category).

Depending on the order of these rules, the last applicable rule will overwrite the tax classification of the rules processed before.

 

Example:

Customer specific rule for reduced tax rate for Product Category "Exhibition Stand Building" and standard rule defined for country Germany.

Seq. Product Category Tax Rate Type Tax Exemption Reason Taxable Service Point Country Region Tax Type
1 EQ(Exhibition Stand Building) Reduced   False Germany   Value Added Tax
2 * Standard   False Germany   Value Added Tax

Purchase Order with two free-text items created, item 10 with product category "Exhibition Stand Building" and item 20 with product category "Office":

For item 10 (product category "Exhibition Stand Building"), both rules stated above apply. Due to the processing order, the tax rate is first set to "reduced" (rule 1), and then again to "standard" (rule 2).

For item 20 (product category "Office"), only rule 2 applies.

 

Resolution

Due to the mixing of the product category tax classification with the general standard tax classification (not visible to the user), the "standard" rule delivered by SAP is not necessary any more.

In case a standard rule for a country in the product category tax classifications leads to several rules being applicable in a scenario, see example above for product category "Exhibition Stand Building", the meanwhile superfluous standard rule can be deleted.

 

Example:

Customer specific rule for reduced tax rate for Product Category "Exhibition Stand Building" and standard rule defined for country Germany.

-> Solution: Delete standard rule (#2).

Seq. Product Category Tax Rate Type Tax Exemption Reason Taxable Service Point Country Region Tax Type
1 EQ(Exhibition Stand Building) Reduced   False Germany   Value Added Tax
2 * Standard   False Germany   Value Added Tax

Purchase Order with two free-text items created, item 10 with product category "Exhibition Stand Building" and item 20 with product category "Office":

For item 10 (product category "Exhibition Stand Building"), the tax rate will be determined as "Reduced rate".

For item 20 (product category "Office"), no rule from above applies, hence the default standard tax classification applies with the "standard rate".

 

Keywords

KBA , AP-PRP , Purchase Request Processing , How To

Product

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