What is tax condition type in sales order?

There can be two ways of handling tax in purchase order.

Input tax code in purchase order as shown below.

Tax percentage is applied on net value of purchase order.

Second: Tax can also be applied in purchase order by using tax condition type

Pricing procedure has many conditions, some of the condition types can be created as tax condition type. Tax percentage can be maintained as condition record in table contained in access sequence.

Tax percentage is applied on condition base value for tax amount calculation. Calculated tax amount is posted to GL account assigned to account key which is linked to the tax condition type.

Tax in sales order:
Tax is applied in sales order by using tax condition type.

Some of the condition types can be created as tax condition type.

Tax percentage can be maintained as condition record in table contained in access sequence.

Tax percentage is applied on condition base value for tax amount calculation. Calculated tax amount is posted to GL account assigned to account key which is linked to the tax condition type.

GL ACCOUNTING

ACCOUNTS PAYABLE

ACCOUNTS RECEIVABLE

TAX ACCOUNTING

WITHHOLDING TAX

ASSET ACCOUNTING

SAP CONTROLLING

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