How is tax applied in purchase order and sales order?


There can be two ways of handling tax in purchase order.

 

Input tax code in purchase order as shown below.

Tax percentage is applied on net value of purchase order.

tax-code-in-purchase-order

 

Second: Tax can also be applied in purchase order by using tax condition type

tax condition type in purchase order

Pricing procedure has many conditions, some of the condition types can be created as tax condition type. Tax percentage can be maintained as condition record in table contained in access sequence.

Tax percentage is applied on condition base value for tax amount calculation. Calculated tax amount is posted to GL account assigned to account key which is linked to the tax condition type.

 

Tax in sales orde: Tax is applied in sales order by using tax condition type.

tax condition type in sales order

Some of the condition types can be created as tax condition type.

Tax percentage can be maintained as condition record in table contained in access sequence.

Tax percentage is applied on condition base value for tax amount calculation. Calculated tax amount is posted to GL account assigned to account key which is linked to the tax condition type.