Posting Taxes in MM

Use

In MM, the tax codes appear as default values based on the settings made in Customizing. The IDES System is configured so that only purchase orders requiring an account assignment are taxable. When a purchase is made for stock or directly for a production order, tax code I0 appears as a default value. If a purchase is made for a cost center, tax code I1 appears as a default value and the tax rate depends on the tax jurisdiction code that is linked to that cost center. If you want to have different default values for taxes in some situations, you can overwrite the default value in the info record. In this process, you post four different invoices using four different tax codes (I1, I0, U1, and U0).

Write down all numbers assigned by the system.

Procedure

Entering a purchase order

1. Call up the transaction as follows:

Menu Path	Logistics ® Materials Management ® Purchasing ® Purchase Order ® Create ® Vendor/Supplying Plant Known
Transaction Code	ME21N

2. Enter the following data:

Field	Data
Vendor	3920

Make sure that Standard PO is selected.

3. To open the item header area, choose Header.
4. Choose .
5. On the Org. data tab, enter the following data:

Field	Data
Purchasing org.	3000
Purch. group	001
Company code	3000

When you generate invoices #2 to #4, a dialog box may appear, informing you that a purchase order already exists for today. In this case, choose Purchase order ® Other purchase order.

6. To open the item overview area, choose Item overview.
7. Enter the following data:

Field	Data
Item number	10
Material	V10
PO quantity	1
Deliv. date	A few days in the future
Net price	100.00
Currency	USD
Plant	3000
Stor. loc.	0001

8. Choose .



Choose if the system outputs any warning messages.

9. Select your item, then choose Item detail.

The tax code that was selected appears on the Invoice tab. Each example requires a different tax code.

10. On the Invoice tab, enter the following data:

Field	Data
Tax code for invoice #1	I1

11. Choose .
12. To see the tax rate, select your item and then choose Taxes.

The system displays the default tax jurisdiction code for the plant.

13. Choose .
14. Choose .
15. Note the purchase order number.
16. Repeat steps 2 to 12 for invoices #2 to #4.

Field	Data
Tax code for invoice #2	I0
Tax code for invoice #3	U1
Tax code for invoice #4	U0

17. Choose until the overview tree appears.

Goods receipt

1. Call up the transaction as follows:

Menu Path	Logistics ® Materials Management ® Purchasing ® Purchase Order ® Follow-On Functions ® Goods Receipt
Transaction Code	MIGO

2. Enter the following data:

Field	Data
Purchase order	Your PO number

3. Choose .
4. Flag the OK indicator in the item overview area for your item.



If the OK indicator is not active in the item overview area, either close the item detail area or select Item OK in the lower part of the item detail area.

5. Then select Post at the top of the screen.



The system confirms the posting and assigns a material document number. Take a note of this number.

6. Repeat steps 2 to 4 for invoices #2 to #4.
7. Choose .

Invoice receipt

1. Call up the transaction as follows:

Menu Path	Logistics ® Materials Management ® Purchasing ® Purchase Order ® Follow-On Functions ® Logistics Invoice Verification
Transaction Code	MIRO

2. Enter the following data:

Field	Data
Document date	Today’s date
Invoice date	Today’s date
Amount for invoice #1	104.00
Calculate tax	Select
Tax code for invoice #1	I1 A/P sales tax, taxable
PO order/scheduling agreement	Your PO number



The tax code is not transferred from the purchase order because the system is configured to always use I0 as a default value.

3. Choose .
4. Choose .

Confirm any warnings by choosing . The system posts your document automatically.

5. Make a note of the document number.
6. Repeat steps 2 to 6 for invoices #2 to #4.

Field	Data
Amount for invoice #2	100.00
Amount for invoice #3	100.00
Amount for invoice #4	100.00
Tax code for invoice #2	I0 A/P sales tax, exempt
Tax code for invoice #3	U1 A/P use tax, taxable
Tax code for invoice #4	U0 A/P use tax, exempt

7. Choose until the overview tree appears.