Taxes at Service Level

Description

As of Release 4.0A, it is possible to calculate taxes in the service entry sheet at individual service level. The tax and jurisdiction codes are stored not only at item level but also at the level of the individual service line, since the individual services or activities defined in a set of service specifications may be taxable at different rates. This is the rule in countries with jurisdiction-dependent taxes.

When services performed are entered, an automatic tax determination process is carried out for each service line of the entry sheet. The tax code is determined via the tax indicator stored in the service master record and the condition tables for tax determination that are stored in the system. Maintenance of the condition tables is carried out using the same transactions as for materials.

If no tax code can be determined automatically, the code from the PO item is adopted in the relevant line of the service entry sheet as the default (suggested) value.

When the invoice is entered, the tax codes are adopted from the lines of the relevant entry sheet. They can similarly be changed.

Change system parameters in customizing

In Customizing, you can set up the automatic tax code determination process in the same way as for materials.

For more on this topic, please also refer to
Taxes and
Define tax jurisdiction.