Update tax classification for existing sales contracts

[former_member357054]

Hi Experts,

We have a requirement for a particular company code that was tax exempt till now, but that should be taxable at a certain fixed percentage from next month. The tax condition type is manual tax 'MWST' and I have updated the VK11 condition and made it taxable for domestic taxes and also updated the required material tax classification.

We are getting the required tax for bills created for new contracts, but for bills created for existing contracts, the tax is not being determined. On analysis we figured out that this is because the old contracts still has the tax classification as 0. When these contracts were set up, the material had tax classification 0 and I guess that is the reason the old contracts still has the tax classification as 0. Are there any ways to update this tax classification to 1 in these old contracts ? or any other suggestions to tackle this issue ?

Thanks,

Dhan

[VeselinaPeykova]

In my opinion the topic is more related to the legal implications than to the techical solution.

You need to check how exactly the existing contracts should be treated according to the new legislation and it is best to contact a legal advisor company to clarify the correct approach.

From technical perspective - in case you have no subsequent documents, you can change the material tax classifications via transaction MASS for example. If you have a valid VAT condition record for the period, it will be updated. (Just because it is possible does not mean that it is the right thing to do).

Why did you set MWST as manual? I am really qurious about the business logic behind the decsion, because in all implementations I took part in, tax was supposed to be automatic (only for tax triggerring we needed to have some manual tax conditions).

[former_member184771]

Dear Dhanesh,

The contract which is already created cant be updated.

But why you are  not using some other key combination for tax condition in old contract and update the pricing with G or maintain the same at copy control level is volume of old contract is more.

Thanks.

SS