Define Tax Procedure Check Calculation Procedure

Copy from TAXINN Define Procedures Create Access Sequence T Code VK03

Edit/Create Condition Types on Define Condition Types

Check and Change Settings for Tax Processing

Define Procedures

Assign Country to Calculation Procedure

Define Tax Codes for Sales and Purchases

Define Tax Accounts

Create Condition Type T Code FV11

This is the normal Configuration we are doing for tax calculation. If you want to assign both sales tax and vat in a single invoice do the rest shown below.

1. Define a common Tax Code for using the both taxes such as sales tax and service tax, in the above configuration we are using one tax code for sales and another for services. Ie create a single tax code like C1 T code FTXP(IMG-Financial Accounting-Global Settings-Tax on sale/purchasecalculation- Define Tax code)

2. Assign GL account for the Tax code T code-OB40 (IMG-Financial Accounting-Global SettingsTax on sale/purchase-Posting-Tax account)

3. Assign Tax Code to Condition Type Both the Sales Tax and Service Tax T code- FV11. Here we can enter the required Rate of tax in each type of tax