Malaysia GST in MM

[Former Member]

Dear experts,

We have created a new tax code for Malaysia GST, but i would like to get your advise on how can we set up the condition record in MEK1 based on below condition. So that, PO will automatically captured the Tax code correctly.

Condition 1: if vendor is located in Malaysia without VAT register number, use tax code A

Condition 2: if vendor is located in Malaysia with VAT register number, use tax code B

Condition 3: if vendor is located in oversea, use tax code C

Please advise.

Regards,

William

[Former Member]

This message was moderated.

[binoy_vargis1]

Hi William,

We have implemented this recently for a client. We have used the "Industry" field in Control tab of Vendor master. You can take any Field which you can add as a field in condition table of Access sequence for the condition type in MEK1.

For Eg.

1) create three groupings of vendors A1-Malaysia without VAT register number,A2-Malaysia with VAT register number and A3-located in overseas

2) For each vendor maintain this code in "Industry" field or some other field as per the taxcode required.

3) In M/03 create new condition table between 501 and 999 with this Field in combination with country or company code.

4) Make a copy of access sequence MWST and add this new Table in the Access Sequence in M/07.

5) Make a copy of Condition type MWST in Tcode M/06 and assign the new access sequence.

6) Give condition record in MEK1 for the new table .

Now the Taxcode will be defaulted inside the PO as per the vendor group.

Try this and let us know.

Regards

Binoy

[Former Member]

Hi Binoy,

I'm trying your suggested solution above and I'm not able to find 'Industry' field to select for the condition table. Can you share with me how you were able to do set up new condition table via M/03 with 'Industry' field as one of the key combinations.

Really appreciate if you can shed me the light.

Regards,

Nunda

[binoy_vargis1]

Hi Nunda,

BRSCH-Industry will not be available for selection as such. You have to first add it manually.

SPRO-->Materials Management-->Purchasing-->Conditions-->Define Price Determination Process-->Extend Field Catalog for Condition Tables

Select New Entries and add "BRSCH".

Now it will be available for selection.

Regards

Binoy

[Former Member]

Hi Binoy,

I just figured that out after I sent you the question but thanks a lot for your response.

On step 4, where do make a copy of access sequence MWST?

Also on step 5, I don't see condition table 'MWST' in M/06 (Purchasing). Can I copy from other tax condition class?

I'm a FI/CO and not MM expert here. Appreciate if you could help me.

Regards,

Nunda

[binoy_vargis1]

In step 4 you can make a copy of access sequence in M/07. Check in M/06 whether you have condition type MWST or NAVS.

[BijayKumarBarik]

Hi,

You have created a new tax code-but which tax procedure you are using!

You need to maintain tax  condition record with tax code in t.code:FV11 not the condition record in t.code:MEK1.

During creation of purchase order for vendor, you need to maintain tax code in purchase order or maintain tax code in info record,which then defaulted during creation of purchase order.

Regards,

Biju K

[Former Member]

Hi Bijay,

i need to create condition records for Purchasing purpose, therefore we need to maintain condition records in MEK1.

Currently, if we maintain tax code(B) in MEK1, system will alway pick tax code(B) for PO if it matches with the company code regardless of condition stated below.

Condition 1: if vendor is located in Malaysia without VAT register number, use tax code A in PO

Condition 2: if vendor is located in Malaysia with VAT register number, use tax code B in PO

Condition 3: if vendor is located in oversea, use tax code C in PO

I would like to have your advise on what is the best practice in SAP to setup above condtion records. So that, tax code in PO is caputured correctly.

Please advise.

Thank you.

Regards,

William

[BijayKumarBarik]

Hi,

You can play with condition keys and adding these condition keys for creating your condition table which will help you to determine pricing in your  Purchase order!

Create pricing condition table with condition keys material, vendor,tax code and Incoterms.
Complete all pricing procedure configuration with creation of access sequence and condition type involved.

Create three Incoterms

MNV----Malaysia without VAT register number
MAV----Malaysia with VAT register number
OER----Located in oversea

For respective vendor, you can maintain the Incoterms in purchasing data view of vendor master.

Now maintain the condition record(MEK1) for respective vendor with respective tax code.

Create new purchase with vendor,based vendor and incoterm, you will have tax code defaulted in your purchase order from condition record.

NOTE:
Instead of condition key Incoterms, you can think of considering creating other condition keys Material, Vendor,Region, Country and Tax code for  creating your pricing condition table

Regards,

Biju K

[Former Member]

Hi Biju K,

If a vendor is having VAT reg number in vendor master data and they are going to register for GST number as well.

May i know which is the suitable field that we can use to maintain GST number in Vendor Master Data?

Please advice.

Regards,

William

[BijayKumarBarik]

Hi,

You can maintain VAT Registration Number in field VAT Reg. No.{LFA1-STCEG} in “Control” view of your vendor master and to maintain other  VAT Registration Number for other country, just click “Other”. Refer screen

Regards,

Biju K