Value Added Tax (VAT)

Configuration Documentation
For
Value Added Tax (VAT)
2005

Siemens Information Systems Ltd

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Value Added Tax (VAT)

INDEX
Structure for Jurisdiction code (OBCO).03
Jurisdiction Code for TAXINJ (OBCP)04
Condition Types for Sales / Purchases (OBQ1)...05
Condition Types for Sales / Purchases (OBQ1)...06
Excise Tax condition Types (OBQ1)...07
Tax Processing in Accounting (OBCN)..08
TAXINJ procedure (OBQ3).09
TAXINJ procedure....10
New Condition Types for SD V/06....12
Pricing Procedure: ZJDEPO..13
Pricing Procedure: ZJFACT..14
SD Condition Types V/06....16
UTXJ Condition Type V/06..17
GL account for new Tax transaction keys (FS00)...18
Customer Tax Classification - OVK3..20
Material Tax Classification OVK4.21
Tax Codes (VAT) in UTXJ- SD ..22
Tax Codes (VAT) in FTXP-MM...23
Business Places...24
Assign Business Places to Plants...25
Maintain Master Records26
Migration.27

Siemens Information Systems Ltd

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Value Added Tax (VAT)

Delete the Structure for Jurisdiction code (OBCO)

Active Settings:
The tax procedure TAXINJ from Jurisdiction code structure at field Proc. (V_TTXDKALSM) is not present.

Remarks:
This is in compliance with SAP recommendation.

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Value Added Tax (VAT)

Delete Jurisdiction Code for TAXINJ (OBCP)

Active Settings:
Jurisdiction Code for TAXINJ is deactivated.

Remarks:
This is in compliance with SAP recommendation.

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Value Added Tax (VAT)

Define Condition Types for Sales / Purchases (OBQ1)

Active Settings:
For Inbound transactions three new Tax condition types to be introduced:
1. JIP4: A/P CST Non Deductible under VAT as a copy of JIP1.
2. JIP5: A/P VAT RM Deductible as a copy of JIP2
3. JIP6: A/P VAT RM Non Deductible as a copy of JIP3
For Outbound transactions new Tax condition type have introduced:
1. JIN6: A/R VAT Payable as a copy of JIN2
For all the above, Condition Category is maintained as D and the Access sequence
"MWST" is assigned.

Remarks:
The above condition types have been in place and in compliance per SAP
recommendations.

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Value Added Tax (VAT)

Define Condition Types for Sales / Purchases (OBQ1)

Active Settings:
For Inbound transactions following conditions need to be maintained with Condition
Category D and Access Sequence MWST:

1. JIP1: A/P C Sales Tax Inv.

2. JIP2: A/P L Sales Tax Inv
3. JIP3: A/P Sales Tax setoff
For Outbound transactions following conditions need to be maintained with
Condition Category D and Access Sequence MWST:
1.
2.
3.
4.

JIN1: A/R Centr. Sales Tax

JIN2: A/R Local Sales Tax
JIN4: CST Surcharge
JIN5 : LST Surcharge

Remarks:
For all the above, Condition Category is maintained as D and the Access sequence
"MWST" is assigned which is in compliance with SAP recommendations.

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Value Added Tax (VAT)

Change in Excise Tax condition Types (OBQ1)

Active Settings:
For following conditions Tax Category D & Access sequence "MWST" has to be
maintained:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.

JMO1 - A/P Excise duty for Setoff

JAO1 - A/P AED for Setoff
JSO1 - A/P SED for Setoff
JMO2 - A/P Excise duty for Inventory
JAO2 - A/P AED for Inventory
JSO2 - A/P SED for inventory
JMOD - A/R Excise Duty
JAED - A/R Add. Excise Duty
JSED - A/R Sp. Excise Duty
JCES - A/R CESS
JECS - IN A/R Education Cess
JEC1 - A/P Ecess for setoff
JEC2 - A/P Ecess for Inven

Remarks:
For all the above, Condition Category is maintained as D and the Access sequence
"MWST" is assigned which is in compliance with SAP recommendations.

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Value Added Tax (VAT)

Settings for Tax Processing in Accounting (OBCN)

Active Settings:
For following transaction keys for new tax conditions to be defined.

Akey

Description

JP4

A/P CST Non

Deductible
A/P VAT RM
Deductible
A/P VAT RM Non
Deductible
A/R VAT Payable

JP5
JP6
JN6

Tax Types

Non Deduct

Posting Ind.

2
2
1

2
X

3
2

Remarks:
The above transaction keys have been maintained as per SAP recommendation.

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Value Added Tax (VAT)

Change TAXINJ procedure (OBQ3)

Active Settings:
In tax procedure TAXINJ, condition types JIP4, JIP5, JIP6 have been added
immediately after JIP1, JIP2 and JIP3.
Transaction/ Account Keys and Alternative Calculation type have been assigned
as follows
1. JIP4 - JP4 and 371 (ST inventory - India)
2. JIP5 - JP5 and 370 (ST setoff - India)
3. JIP6 - JP6 and 371 (ST inventory - India)
For the sales side, conditions JIN6 have been added in TAXINJ immediately after
JIN1, JIN2, JIN4 and JIN5 conditions.
Transaction/ Account Keys and Alternative Calculation type have been assigned
as follows:
1. JIN6 - JN6
Remarks:
Above is in compliance with SAP Recommendation.

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Value Added Tax (VAT)

The details of the TAXINJ procedure as maintained is given below:

Step Cntr

100
110
120
150
155
160
162
165
170
175
180
182
213
214
215
216
217
218
219
221
222
223
230
231
243
248
260
270
280
440
460
470
480
485
490
510
511
512
513
514
515
517
518
520
530
532
534
535

CTyp Description

BASB Base Amount

Calculated call
Sub Total
JMO1 A/P Eduty for Setoff
JAO1 A/P AED for Setoff
JSO1 A/P SED for Setoff
JEC1 A/P Eduty for Inven
ZMO1 A/P AED for Inventry
JMO2 A/P SED for inventry
JAO2 A/P AED E-cess Inv
JSO2 A/P SED for inventry
JEC2 A/P Ecess for Inven
Sub total for Sales Tax
LSTT TOT%LST-Fullsalestax
JIP1 A/P C Sales Tax Inv
LSTX A/P L Sales Tax Inv
JIP3 A/P Sales Tax setoff
LSTC SURCHARGE%-LST
LPTT TOT%LST(formBD/15EC
LPTX A/P Local Purch Tax%
ZPI3 A/PSTsetoff(BD/15EC)
LPTC Surcharge%-Pur.Tax
ZPTX A/P Loc PurTax(Prov)
ZUTX A/P Loc PurTax(Unrg)
ZF31 Fm-31 ST Set off red
ZRST F31-Resale tax
JIP4 A/P CST Non deductib
JIP5 A/P VAT RM Deductibl
JIP6 A/P VAT RM Non-Deduc
ZRTU A/P RIGHT TO USE TAX
ZSER A/PService Tax Cenvt
ZSC1 A/P Ecess on ser cvt
JSER A/P SERVICE TAX
ZSC2 A/PEdu Cess on Serv
JSVD SERVICE TAX DEBIT
JMOD A/R Excise Duty
JAED A/R AED [Edu Cess]
JNED A/R N.C.C.D.
JSED A/R Sp. Excise Duty
JCES A/R Cess
Sub total
JECS A/R Education Cess
Total of all central taxes
JIN1 A/R Centr. Sales Tax
JIN2 A/R Local Sales Tax
JIN6 A/R VAT Payable
LST / VAT surch base
Subtotal
Siemens Information Systems Ltd

From

To

Man Mdt

Stat

SubTo

Reqt

AltCTy

AltCBV

ActKy Accrls

962
100
100
100
100
150
150
100
100
100
170
120
213
213
213
213
216
213
213
213
221
213
213
213
213
213
213
213
100
100
460
100
480
250
120
510
120
120
120

652
X
X

974
864
868
864

VS1
VS2
VS3
VS1
NVV
NVV
NVV
NVV
NVV

162

862
865
869
865

207
182

X
371
371
370

221
217

972
222

X
370
370
370
370
371
370
371

515
515 517
518
518
518
530 532
518 532
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X
X
X
X
X
X
X
X

352
352
352
352

363
363
363
363
363

NVV
NVV
NVV
VS5
NVV
363 NVV
363 NVV
363
NVV
363 ZS5
363 ZS6
363 VS5
363 NVV
363 JP4
363 JP5
363 NVV
NVV
ZS1
ZS2
NVV
NVV
ESE

363
366
366
360
367
366
MW1
MW2
JN6

352

Value Added Tax (VAT)

540
550
555
560
570
580
590

JIN4
JIN5
ZJAS
ZTT1
ZTT2
ZST1
ZST2

CST surcharge
LST surcharge
LST surcharge- Addn
A/R TO Tax(incl. ST)
A/R TO Tax(Inc ST)
A/R SrvTx Payable
A/R E cess serv tax

Siemens Information Systems Ltd

520 520
534
534
518
535
100
580

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MW3
MW3
ZAS
MW4
MW4

Value Added Tax (VAT)

Active Settings:
New SD condition types to be defined for VAT with Condition Category D.

JIN6: A/R VAT Payable

Remarks:
Above SD Condition Type are already in place in following Pricing Procedures:
ZJDEPO
ZJFACT
ZJGDN1
ZJSCRP
ZJFSPR
ZJFSRT
ZJFSP1
ZJBRAN
YJFSPR
YJGDN1
ZAHBAJ

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Value Added Tax (VAT)

ZJDEPO:
Proc.

ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO

Step Cnt Ctyp

r

100
180
190
250

ZDSP
ZP01
ZTTR
ZDF1

255
275
300
310
350
400
550
720
740
740
760
770

YDF1

772
775
777
778
780

ZJAS

785

YDF2

790
800
820
860
870

ZENT
ZPDI
ZVSC
ZVS2

880

ZSRA

882

ZSRC

885

ZSRW
ZDFP
ZND1

UTXJ
JMOD
JEX2
JCES
JIN1
JIN2
JIN6
JIN4
JIN5

ZTT1
ZTT2
ZDF2

ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO
ZJDEPO 890
ZJDEPO 900

Description

Depot Selling Price

Taxable Insurance
Territorial Rebate
Dep Taxable Freight
Dep Add.Taxable
Frt
Tax Base
Tax Jurisdict.Code
Sub Total 1
A/R Basic Excise
A/R Basic Excise
A/R Cess
Central sales tax
Local sales tax
VAT Payable
CST surcharge
LST surcharge
LST surchargeAddn
Base Price+ST
Turnover Tax
Turnover Tax
Dep Non-tax Freight
Dep Add Non-Tax
Frt
Dealer Purchase
Price
Entry tax
Pre Delivery Inspect
Veh service charges
Veh ser chg Year II
Stock Reserve
Akurdi
Stock Reserve
Chakan
Stock Reserve
Waluj
Dep Freight payable
Net Dealer Price

Siemens Information Systems Ltd

From

To

Man.

Mdt Stat

P SubTo

X
X
X
X

1
4
5

602

ERL
INS
ERL
FRT

602

FRT

100

250
100
275
100
300
350
100
275
275
275
720
740
740
310
775
775
775

AltCTy

AltCBV

ActKy

260
X

652

260
X
X
190 X
X
X
X
720 X
740 X
740 X
772
X
775 X

X
X
X
X
X
X
X
X
X
X
X
X

780
775

Reqt

X
X
X
X
X
X

355
353
359

3
A

X
X
X

3
3

602

FRT

602

FRT

785

A
X
X
X
X

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D
2
H
3
3
3
3
3

902
PDI
VSC
VS2

SR1

SR2

X
X
X

SR3

Accrls

Value Added Tax (VAT)

ZJFACT:
Proc.

Step

ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT
ZJFACT

Cntr

100
110
150
175
200

590
600
605
610
625
630
635
640
641
643
644
645
647
648
650

775

Description

Net Dealer Price

Special Price
Forwarding/ Handling
CSD Dealer Markup
Ass Value
Ass value
ZNCD (SED/NCCD)
UTXJ Tax Jurisdict.Code
JMOD A/R Basic Excise
Base Prices
JEX2 A/R Basic Excise
ZEX2 A/R Basic Excise
Base prices + BED
JCES A/R Cess
JCED A/R Cess
Basic Price + BED +
CESS
JSED A/R Special Exc.duty
JNED A/R NCCD
JAED A/R Add. Excise duty
JEXS A/R SED
JEXN A/R NCCD
JEXA A/R AED
BED
CESS
Sub total of central
taxes
JECS A/R Education Cess
JECX A/R Education Cess
Basic price
Sub total of central
taxes
Sp. Disc. For CSD
Sub TotalPrice+ED+Edu.cess
ZCDM CSD Dealer Mark-up
Ex-Factory Price
ZP01 Taxable Insurance
ZFR1 Taxable Freight
YFR1 Add. Taxable Freight
JIN1
Central sales tax
JIN2
Local sales tax
JIN6
VAT Payable
JIN4
CST surcharge
Base
Price+Excise+ST+Dis
count

From

To Man Mdt Stat P SubTo Reqt AltCTy AltCBV ActKy Accrls

.

ZNDP
ZSPP
ZFHA
ZDR1

250
300
350
375
400
410
475
550
575

653
655
675
700
710
715
720
740
740
760

CTyp

Siemens Information Systems Ltd

X
X
100 175

X
X
X
X

1
1

652
355

353

EXD

X
X

959
353

EXC

X
X
X
X
X
X

H
H
H

959
959
959
353
353
353

EXD
EXN
EXD

959
353

EDC

702

ERL

602
602
959

INS
FRT
FRT

200
200

X
X

200
350
400
375 400
200
X
550
475 550
250
X
250
X
200
X
600
605
610
400
575

X
X
X

X
X
X

X
X
X

X
X

625 642
643
X
644
375

X
X

643
645 648

X
X

645 648

653 655
675

710
675 715 X
675 715 X
675 715 X
740
X

X
X
X
X

675 770

14 of 27

ERL
ERL
FLH
ERL

3
X
X
X
X
X
X
X

Value Added Tax (VAT)

777
ZFR2 Non Taxable Freight
Add. Non Taxable
779
YFR2 Fre
781
Copy of Ex factory
783
Taxes for Insurance
Non Taxable
785
ZP02 Insuranc
Dealer Purchase
790
Price
930
ZND1 Net Dealer Price
940
ZVS2 Veh ser chg Year II
950
ZENT Entry tax
960
ZPDI Pre Delivery Inspect
970
ZFDI Factory Direct Incen
980
ZDLR Dealer MarginInspect
990
ZVSC Veh service charges

777
675
720 760

602

FRT

959

FRT

602

INS

X
X

781 784
775 785

X
X
X
X
X
X
X
X

Above are examples of Pricing Procedures. The complete list is available with
BAL.

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VS2
ENT
PDI
FDI

VS2
ENT
PDI
FDI

VSC VSC

Value Added Tax (VAT)

Maintain SD Condition Types V/06

Activity:
All SD Cenvat Conditions like JMOD, JEX2, JECX, JAED, JEXA, JCED, JCES,
JEXS, JECS, JECX should be maintained with Condition Category D.
Remarks:
Condition Types JMOD, JAED with Condition Category 1 has been changed to
Condition Category D and JECX, JEX2 with Condition Category _ has been
changed to Condition Category D.

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Value Added Tax (VAT)

Maintain UTXJ Condition Type V/06

Activity:
Condition Category 1 should be maintained with Access Sequence ZCIN.
Remarks:
Condition Category 1 is maintained with Access Sequence ZCIN. However
ZCIN is having same tables 909 and 910 (copy of 11 and 368) with same fields.
These tables should be marked exclusive. Currently these tables were not
marked exclusively which was now maintained as exclusive.

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Value Added Tax (VAT)

Create GL account for new Tax transaction keys (FS00)

Active Settings:

Following new accounts are proposed to be opened after VAT is implemented.

For input credits - in current asset group
461501
461502
461503
461511
461512
461513

VAT Receivable - Raw Material & Components

VAT Receivable - Capital Goods
VAT Receivable - Opening Stock
VAT credit on hold - Raw Material & Components
VAT credit on hold - Capital Goods
VAT credit on hold - Opening Stock

Remarks:
Above GL Accounts have been activated in PRD.

For VAT reversals on non-productive use/shortages etc. - in expenses group

680211

VAT Others

For reversal of input tax credit on depot/branch transfers. - in expenses group

660921

VAT reversal on depot transfers

For the Sales tax collected we propose to continue using the same account
codes that are in use today. The list is as under.
221351
221352
221353
221354
221355
221356
221357
221358

CST Current Year - Maharashtra

CST Current Year - Uttar Pradesh
CST Current Year - Bihar
CST Current Year - West Bengal
CST Current Year - Punjab
CST Current Year - Haryana
CST Current Year - Chandigarh
CST Current Year - Rajasthan

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Value Added Tax (VAT)

221359
221360
221361
221362
221363

CST Current Year - Assam

CST Current Year - Tamilnadu
CST Current Year - Jammu and Kashmir
CST Current Year - Orissa
CST Current Year - New Delhi

221251
221252
221253
221254
221255
221256
221257
221258
221259
221260
221261
221262
221263

LST/VAT Current Year - Maharashtra

LST/VAT Current Year - Uttar Pradesh
LST/VAT Current Year - Bihar
LST/VAT Current Year - West Bengal
LST/VAT Current Year - Punjab
LST/VAT Current Year - Haryana
LST/VAT Current Year - Chandigarh
LST/VAT Current Year - Rajasthan
LST/VAT Current Year - Assam
LST/VAT Current Year - Tamilnadu
LST/VAT Current Year - Jammu and Kashmir
LST/VAT Current Year - Orissa
LST/VAT Current Year - New Delhi

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Value Added Tax (VAT)

Maintain Customer Tax Classification - OVK3

Active Settings:
Following Key Indicators are currently defined for Customer Tax Classification:
Indicator
Description
0
Export Customer
Veh/Spares
3
Veh/Sp Part Dealer
6
Inter Div - IMS
7
Inter Div - OMS
8
Nepal / Bhutan 0%
9
Exempted Sale
A
Veh/sp dlr w/o Form 'C'
G
Matl/Scrap customer

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Value Added Tax (VAT)

Maintain Material Tax Classification OVK4

Active Settings:
Following Key Indicators are currently defined for Material Tax Classification:
Indicator
0
1
I
J
K
L
M
N
B
Q

Description
Chemical
Veh Taxable
Pigment
MH, 4% , Trading
MH, 12.5% , Trading
MH, 0% , Factory Part
MH, 4% , Factory
Part
MH, 12.5% , Factory
Part
Agency Sale Business
Matl for proc srv tx

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Value Added Tax (VAT)

Create Tax Codes in UTXJ

Activity:
Following Tax Codes have been generated for VAT in FTXP and created
condition records as below. Tax Codes have been assigned to respective GL
accounts.
REGIOPL

REGIO

CUSTCL

MATTCL

RATE

MAH
MAH
MAH

MAH
MAH
MAH

3
3
3

1
1
M

100%
100%
100%

TAX
CODE
1A
1B
1C

GL A/C
221251
221251
221251

0%
12.5%
4%

Above are examples of mapping Tax Codes. The complete list is available with
BAL.

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Value Added Tax (VAT)

MM Tax Codes:
TX

RATE
JM01 JM02 JEC1 JEC2 JIP5

3P
3Q
3R
4A
4B
4C
4D
4E
4F
4G
4H
4I
4J
4K
4L
4M
4N
4O
4P
4Q
4R
4V
4W
4X
4Y
4Z

100%
0%
100%
100%

2%
100%
100%

2%
2%

100%
100%

2%
2%

100%
100%

2%
2%

100%
100%

2%
2%

100%
100%

2%
2%

100%
100%

2%

1%
1%

2%
100%

100%
100%
100%

2%

12.5%
12.5%
12.5%
4%
4%
4%
12.5%
12.5%
12.5%

2%

2%
2%
2%

4%
12.5%

Above are examples of mapping of MM related Tax Codes.

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Value Added Tax (VAT)

Define Business Places J_1BBRANCV

Active Settings:
Presently following Business Places are maintained:
AK01
CH01 WA01 ZZ01 ZZ02 ZZ03 ZZ04 ZZ05 ZZ06 ZZ07 ZZ08 ZZ09 ZZ10 ZZ11 ZZ12 -

Akurdi
Chakan / Akurdi
Waluj
Guwahati
Sambalpur
Kharagpur
Faridabad
Hosur
Jammu
Kota
Patna
Luknow
Chandigarh
Zirakpur
Delhi

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Value Added Tax (VAT)

Assign Business Places to Plants J_1BT001WV

Active Settings:
Business Places were assigned to Plants:
Remarks:
Following Plants / Depots have been assigned to Business Places:
Business Place
AK01
AK01
AK01
AK01
AK01
CH01
CH01
CH01
CH01
WA01
WA01
WA01
WA01
WA01
ZZ01
ZZ02
ZZ03
ZZ04
ZZ05
ZZ06
ZZ07
ZZ08
ZZ09
ZZ10
ZZ11
ZZ12

Plants / Depots
AK01
AK02
AK03
AK04
AK06
CH01
CH02
CH03
CH04
WA01
WA02
WA03
WA04
WA05
ZZ01
ZZ02
ZZ03
ZZ04
ZZ05
ZZ06
ZZ07
ZZ08
ZZ09
ZZ10
ZZ11
ZZ12

Maintain Master Records

Master Data Maintenance

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Value Added Tax (VAT)

1. Customer Master Data:

Remove Jurisdiction Code: Maintain blank field in Jurisdiction Code field for all
customers.
Define correct Region of Customer: Ensure correct input of Customer Region.
Define correct Customer Tax Classification: Ensure correct input of Customer
Tax Classification.
Define TIN Number: Maintain correct TIN Number for Customers.
2. Material Master Data:
Define correct Material Tax Classification: Ensure correct input of Material Tax
Classification.
3. Condition Records for UTXJ:
Domestic: New condition records need to be created for the access sequence
i.e. Region of Delivering Plant / Region of Ship to Party / Customer Tax
Classification1 / Material Tax classification1 -Tax Code.

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Value Added Tax (VAT)

Migration
Activity:
BAL have foreclosed all Purchase and Sales Orders so that smooth migration can be
availed.

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