Summary -
In this topic, we described about the below sections -
Almost every country has some transactions which are non-taxable. The non-taxable transactions can be incoming or outgoing where input or output tax should not apply. For example, Government transactions.
The creation of tax codes for non-taxable transactions includes the below steps -
- Define 0% input tax
- Define 0% output tax
- Assign tax codes for non-taxable transactions
Define 0% Input Tax: -
Below process is to define 0% input tax.
Step-1: Enter the transaction code FTXP in the SAP command field and click Enter to continue.
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(OR)
Enter the transaction code SPRO in the SAP command field and click Enter to continue.
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Click on SAP Reference IMG.
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Expand SAP Customizing Implementation Guide → Financial Accounting → Financial Accounting Global Settings → Tax on Sales/Purchases → Calculations → Define Tax Codes for Sales/Purchases. Click on Execute.
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Step-2: In the next screen, select the country code and click on right mark.
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Step-3: In the next screen, enter the new tax code (2-digit alphanumeric) and press Enter.
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Step-4: Enter the below details in the new dialog box opened ad click on right mark to proceed.
- Tax code Description – Enter the tax code description
- Tax Type – Enter V or select input tax type.
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Step-5: In the next screen, enter the Input tax -Tax Percent. Rate as ZERO and press Enter.
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Step-6: Once all the details entered, click on the Save button to save the changes.
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Step-7: Status bar displays the below message once the input zero-percent tax code defined successfully.
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Define 0% Output Tax: -
Below process is to define 0% output tax.
Step-1: Enter the transaction code FTXP in the SAP command field and click Enter to continue.
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Step-2: In the next screen, select the country code and click on right mark.
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Step-3: In the next screen, enter the new tax code (2-digit alphanumeric) and press Enter.
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Step-4: Enter the below details in the new dialog box opened ad click on right mark to proceed.
- Tax code Description – Enter the tax code description
- Tax Type – Enter A or select Output tax type.
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Step-5: In the next screen, enter the Output tax -Tax Percent. Rate as ZERO and press Enter.
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Step-6: Once all the details entered, click on the Save button to save the changes.
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Step-7: Status bar displays the below message once the output zero-percent tax code defined successfully.
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Technical Information: -
- Transaction Code: - FTXP
- Navigation path: - SPRO → SAP Reference IMG → SAP Customizing Implementation Guide → Financial Accounting → Financial Accounting Global Settings → Tax on Sales/Purchases → Calculations → Define Tax Codes for Sales/Purchases
Assign tax codes for non-taxable transactions: -
Below process is assigning 0% input, output tax codes for non-taxable transactions.
Step-1: Enter the transaction code OBCL in the SAP command field and click Enter to continue.
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(OR)
Enter the transaction code SPRO in the SAP command field and click Enter to continue.
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Click on SAP Reference IMG.
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Expand SAP Customizing Implementation Guide → Financial Accounting → Financial Accounting Global Settings → Tax on Sales/Purchases → Postings → Assign Tax Codes to Non-Taxable Transactions. Click on Execute.
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Step-2: In the next screen, navigate to the specific company and enterinput tax code, output tax code.
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Step-3: Once all the details entered, click on the Save button to save the changes.
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Step-4: It prompt for the Change Request. Create/Select the change request and Click on right mark to proceed.
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Step-5: Status bar displays the below message once the zero-percent tax codes assigned to non-taxable transactions successfully.
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Technical Information: -
- Transaction Code: - OBCL
- Navigation path: - SPRO → SAP Reference IMG → SAP Customizing Implementation Guide → Financial Accounting → Financial Accounting Global Settings → Tax on Sales/Purchases → Postings → Assign Tax Codes to Non-Taxable Transactions
- Database Table: - T001