SAP Note 26646 - Error during transfer to FI when using several taxes

Symptom:

During the tax calculation for Canada, billing documents were not transferred to Financial Accounting because the tax conditions MWST and UTX1 used different tax indicators.
The check carried out during the transfer to FI then comes to the conclusion that the transferred tax amounts are incorrect.

Cause and prerequisites

Initial situation in the example:

The tax table TAXCA in FI contains the following condition types: GST Taxes on sales/purchases
PST Sales tax

Two tax conditions are defined in SD Customizing: MWST Taxes on sales/purchases and
UTX1 Sales tax

Condition records are created in SD for both condition types. These condition records are read within pricing and supply the control indicator for accounting.

The tax calculation in FI is designed so that the tax percentage rates are found using the tax indicator. Example:

Tax indicator: SA ---> GST 7% - PST 12%
SB ---> GST 7% - PST 10%
SC ---> GST 7% - PST 11%

The above problem occurs because it is not ensured that the tax condition records found in SD provide the same tax indicator.

Solution

The calculation of the taxes is changed to the method that is already used for U.S. taxes with tax jurisdiction code.
In this case, the tax indicator is found in SD via an object condition UTXJ. This is then used to calculate the percentage rates from FI. The redundant maintenance of the percentage rates in SD and FI is then no longer applicable.

Carry out the following Customizing activities:

1. In the country table, you must first find out which tax table is used for Canada (for example: TAXCA)

2. In FI Customizing you must make a note of the tax conditions in the tax calculation schema (for example PST, GST).

3. In SD Customizing you must then copy tax condition type JR1 into PST including condition category D and then copy group condition X PST into GST.

4. Enter the following conditions in the SD pricing procedure (for example RVCA01) instead of the condition types MWST and UTX1 used up to now:

905 UTXJ with manual = BLANK

910 GST with manual = X

915 PST with manual = X

5. In SD Customizing you must enter UTXJ as the only taxes used in the country in question and maintain the allowed tax classifications for customer and material

6. Finally create the condition records for UTXJ.

Additional key words

SD-FI, CTX1, tax, FF747