Defaulting Tax Code in PO – Condition

Technique
December 21, 2013 | 8,373 Views |

PRASOON AK
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MM (Materials Management)
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The tax code can be defaulted in PO from info record as well as through condition technique.

The very common method is by maintaining the tax code in info record. But there are some cases where the tax
code has to be pulled based on some special criteria like vendor region, plant region etc . In such cases, the tax
code can be defaulted in PO through condition technique.

Now, we will discuss the scenario for defaulting tax code based on plant and vendor region combination. The
same logic can be used with other criteria also.

Through Condition technique:

Step 1: Go to M/03 and create a new condition table with the access criteria. Here, its plant and vendor Region.
Step 2: Create a new access sequence, (or add to existing access seq) for MM conditions in M/07 and assign
the condition table to the access sequence.

Check the fields:

Step 3: Create a new MM pricing condition type (or use existing condition type with condition class D) by
copying MWST (or use MWST itself) in M/06
Assign the access sequence to the condition type.
Please ensure that the condition class is D (Taxes) as highlighted in the screenshot.

Step 4: Include the condition type in MM pricing procedure in M/08

Step 5: Maintain condition record for the condition type in MEK1.

Maintain the required tax code in the condition record for the correct combination.

Now, If I’m creating PO for the plant and vendor with region in the cond record (here, 07), the tax code ( E3 in
my example) will be defaulted in PO.

Step 6. Create PO for a vendor with the above combination.

Check the region maintained in the vendor master.

Create PO:
Check the PO Item Conditions:

The tax code will be visible in the details of the condition type:

Analyze the pricing to see the access flow:

Note: The tax code from the condition technique has higher priority than the tax code from the info record.

Thank you,

AKPT
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22 Comments
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Former Member
December 23, 2013 at 12:44 pm

Very useful one..

Thanks

Saba

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PRASOON AK Post author

December 23, 2013 at 3:46 pm

Thanks…

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Dibyendu Patra
December 23, 2013 at 5:09 pm

Very good document AKPT MM sir.. Its really helpful for me..

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PRASOON AK Post author

December 23, 2013 at 6:32 pm

Thanks Dev…

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Former Member
December 24, 2013 at 10:19 am

Hi AKPT,

Very nice document…Thank you for sharing your knowledge…

Regards

Sesha

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PRASOON AK Post author

December 24, 2013 at 11:02 am

Thank you…

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Former Member
December 24, 2013 at 11:36 am

Good one.
really liked the last note , similar case here but for a different use

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PRASOON AK Post author

December 24, 2013 at 6:31 pm

Thank you Manu…..

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Mehmet Ozgur Unal

January 7, 2014 at 10:27 pm

Valuable document about conditions. Thanks …

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PRASOON AK Post author

January 8, 2014 at 7:00 am

Thank you…

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Former Member
January 9, 2014 at 6:21 am

Very nice documents….thanks for sharing with us.

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PRASOON AK Post author

January 27, 2014 at 5:45 am

Thanks!

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Cecil D'Souza
February 11, 2014 at 6:30 pm

Good document. Very well explained and laid out. Thank you for sharing.

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Former Member
February 12, 2014 at 3:41 am

Hi AKPT,

Really informative. Thanks for sharing..

Regards,

Sudeep.

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Former Member
July 8, 2014 at 3:00 am

I was going make the tax default as a condition type, but then I finally found this guide which able to use the
tax indicator.

The difference is I make the access sequence for region only (not plant/region) so I could put the region
indicator on any vendor I want.

Again, thank you, it really helps!

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Former Member
July 9, 2014 at 2:45 am

Hi,

Very useful document….Thanks for sharing

Br,

Partha.

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Former Member
July 9, 2014 at 3:42 am

Hi,

Thank you very much for this document.

Regards

Kumar

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Former Member
January 8, 2015 at 9:44 pm

AKPT,
Simply Brilliant boy……..

Regards
Mohsin Abbasi

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Former Member
March 17, 2015 at 1:52 pm

Hi AKTP,

brilliant, really brilliant, it’s gone be really helpful!!

Regards,

Gurren

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Former Member
May 20, 2016 at 10:07 am

usefull information

Thanks

Sudhakar

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Former Member
July 15, 2016 at 10:01 am

Its very useful for everyone..

Keep posting..

Thanks,

Samy

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Former Member
April 19, 2018 at 8:01 am

Hello Prasoon,

Thanks for the document, can you tell me how can we ensure that the tax condition type has the new tax code,
tax percentage and tax amount.when we change the tax code code in PO (determined via condition technique)

Regards,
Chirag Shah

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