Taxes in SAP CRM setup, configuration , steps and pdf

When you decide to use SAP CRM to calculate taxes, there is a need for it to understand about the taxes that needs to be applied for different business partners, for different products or services, and at what specific rates. It doesn’t matter which tool you use for calculating the taxes – the condition technique or Transaction Tax Engine (TTE) – you need to clearly define the taxes that your channel partners will have to bear. In SAP CRM, taxes like exercise duties or VAT (value-added tax) on commodities like cigarettes, are also referred to as ‘tax types’. The ‘tax groups’ can be different like, VAT at ‘0%’, ‘7.5%’, and ‘15%’.

taxes-in-sap-crm-setup-configuration-steps-and-pdf-tutorial

How to setup SAP CRM for implementing TTE?

Setting up SAP CRM for implementing TTE is easy. For this, first, you need to have the cross application components customized.

First, you need to select ‘IMG’ under ‘SPRO’. Once there, select ‘Cross-Application Components’ followed by ‘Transaction Tax Engine’. Then, under the ‘Tax Maintenance Settings’ option, click the ‘Tax Determination and Calculation’. Finally, click the ‘Define Tax Event Determination’ option.

 

Important Concept

Whether it is service or sales processing, determining taxes is an important step. In a vast number of cases in which the back end integration of SAP ECC (SAP ERP Central Component) is required, taxes involved for services are defined within SAP CRM. However, for sales processes, like sales taxes, these are defined using SAP ECC and then transferred to SAP CRM. Therefore, a SAP CRM technical user has to be comfortable in using tax settings in both SAP CRM and SAP ECC.

Tax Configuration

Understanding and implementing tax configurations can be pretty confusing, especially when you are required to deal with ECC managerial accounting (CO), financial accounting (FI), and sales and distribution (SD). Nonetheless, it is important to determine taxes as they are necessary for finding out the price component of sales and service processing. Therefore, before anything else, you need to know the basic settings that have to be done in SAP ECC and then proceed with tax configurations in SAP CRM. It is important to understand these settings as they’ll provide you an idea of the real-world issues that play their part in the taxation area. For example:

 

Steps for calculating the Tax Calculation Process

Refer the USA Tax configuration guide in PDF

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