SAP Knowledge Base Article - Public

2771350 - Tax Classification for Free-Text Items not Working in Sales Order

Symptom

You have made the setup of activity Tax Classification for Free-Text Items in business configuration, however when creating a sales order the tax classification is not as per setup.

Environment

SAP Business ByDesign.

Reproducing the Issue

  1. Go to Sales Order work center.
  2. Go to Sales Order view.
  3. Create a new sales order with a specific product ID. The product category of this product ID has a given tax classification in the fine-tune activity Tax Classification for Free-Text Items.

Once all required data is entered in the sales order, you noticed that the tax details are not as per the setup in the aforementioned activity.

Cause

A free-text document means that the line item does not have a Product ID reference, it has only a description and a dedicated product category in the Product Category ID field. Free-text items as well as the fine-tune activity Tax Classification for Free-Text Items is relevant only for purchasing documents.

Since sales order is a sales document and must have reference to a product ID, the tax classification for free-text items does not apply.

Resolution

The system works as designed.

Note that in the master data of the Product ID it is possible to include additional tax settings. If there are no tax settings, by default the highest VAT rate is applied as the standard tax rate.

Keywords

Tax Calculation. Tax Code. Tax Determination. Tax Classification. Free-text item. Sales order. Purchasing Document. , KBA , AP-TTE-TC , Tax Calculation , How To

Product

SAP Business ByDesign all versions