SAP R/3 4.

7 SA38 -> ProgramName: RSTXSCRP

Screenshots

Remarks

Creating Tax Codes

Transaction: FTXP
This area gives you a step by step explanation on how to create a tax code in SAP. Later on these tax codes must be used in
the creation of condition tables such as for MWST.

Go to transaction code FTXP and select the country for which you need to create a tax code. This country is
automatically linked to the Tax Procedure which has been set up in the menu path [IMG - Financial accounting Financial accounting global settings - tax on sales/purchases - basic settings - Assign country to calculation
procedure].

Enter in the field tax code. This must be a 2-digit alphanumeric code i.e. A5, 55, BB, etc.. Before SAP 4.5 (I believe)
you could use other special characters such as @, ? etc But this is no longer applicable. See OSS note 212806.SAP
will ask you to complete other additional fields such as:

description of the tax code: please give a clear description

define the tax type: define whether the tax code is relevant for input or output tax

Indicator which determines that an error message should be issued if the tax amount is not correct. It it
recommended to flag this.

Eu code: One of the most forgotten parameter. If you do not set this parameter at 1 then all transactions
with this code will be not picked up in the ESL listing of that specific country. This code 1 represents all the
Sales from one EU country to another EU country.

The target tax code fields are used in case of deferred taxes. This is applicable for example in France. The VAT
needs to be paid for example not when the invoice is issued but when the customer pays the VAT. There are
here again special programs available in SAP for deferred taxes.

Reporting country: this field needs to be completed when you are using the plants abroad functionality. This
means that when you as a German company have a Belgian VAT number and you have sales in Belgium (+
you need to submit a VAT return in Belgium) , then of course these invoices need to be booked in SAP with a
Belgian tax code.

Further in the menu you can also allocate the amount where this specific tax code is used to a certain tax account.
Page 1 of 11

SAP R/3 4.7 SA38 -> ProgramName: RSTXSCRP

The tax type fields such as Base Amount, Input tax, Output Tax can be determined via the calculation
procedures. Calculation procedures are defined in the IMG at [Financial accounting - Financial accounting global
settings - tax on sales/purchases - basic settings - Assign country to calculation procedure]. Here you will need to
define also the calculation levels. For example the Output tax is level 125 and the output tax will be calculated on the
basis of the base amount. Therefore you put for the output tax in the field from level 100. The level of Base amount
is 100. You do the same for the others.

Account Keys.

NVV: The non deductible VAT is automatically added to the expenses account

NAV: Indicate for this key a separate account for the non deductible VAT

ESA: Output tax in case of Acquisition of EU goods

ESE: Input tax in case Acquisition of EU goodsLast but not least you also need to complete the tax rate field.

Tax Percentage & GL Account assignment

Tax percentage can be maintained in two ways & that depends upon the Tax procedure that has been followed i.e. if tax
procedure is formula based then percentage can be maintained in FTXP only, where as if the procedure is condition based then
percentage has to be maintained under the identified condition type.
Once done GL accounts has to be assigned under OB40 for automatic posting of tax amounts.

Source: http://sapdocs.info/2008/09/16/creating-tax-codes/

Page 2 of 11

SAP R/3 4.7 SA38 -> ProgramName: RSTXSCRP

Page 3 of 11

SAP R/3 4.7 SA38 -> ProgramName: RSTXSCRP

Create new condition type with reference

to MWVS

Page 4 of 11

SAP R/3 4.7 SA38 -> ProgramName: RSTXSCRP

Add another condition type to tax

procedure of TAXMY
We need to create a new account key, V05
in order to cater

Page 5 of 11

SAP R/3 4.7 SA38 -> ProgramName: RSTXSCRP

<Check and Change Settings for Tax

Processing>
Copy another <tax processes>, V05

Page 6 of 11

SAP R/3 4.7 SA38 -> ProgramName: RSTXSCRP

Try to explorer also other functions:

Calculation procedure

Transaction key

Automatic posting

Condition lists

Page 7 of 11

SAP R/3 4.7 SA38 -> ProgramName: RSTXSCRP

Different GL accounts

Page 8 of 11

SAP R/3 4.7 SA38 -> ProgramName: RSTXSCRP

Page 9 of 11

SAP R/3 4.7 SA38 -> ProgramName: RSTXSCRP

Page 10 of 11

SAP R/3 4.7 SA38 -> ProgramName: RSTXSCRP

Page 11 of 11