Tax Determination – Introduction
Tax Determination in SAP SD is the automated process where the system calculates and applies the correct tax rate during sales and billing. It plays a crucial role in ensuring legal compliance and accurate pricing in both domestic and international transactions.
This document provides a detailed walkthrough of the entire configuration process for tax determination, including:
- Creation and usage of condition tables, access sequences, condition types, and tax-relevant pricing procedures
- Configuration using V/03, V/07, V/06, V/08, OBBG, and FTXP
- Assigning tax classification for customers and materials in master data
- Maintaining condition records using VK11
- Testing the setup in a sales order and verifying system-determined tax amounts in the conditions tab
It also explains the meaning of tax codes like O0 and O1 and the impact of classifications such as taxable or tax-exempt, ensuring that consultants understand how tax flows through the SD cycle.
For full configuration steps and system behavior, download the document below.
Author
Anusha Muttukundu
SAP SD Consultant
Linkedin Profile
Facebook
Twitter
LinkedIn
RECENT BLOGS
Navigating the SAP Sales & Distribution (SD) module requires a deep understanding of how determinations
In the SAP Sales and Distribution (SD) module, maintaining complete and accurate data is critical
In industries like FMCG and pharmaceuticals, it's common to distribute free samples or promotional products
In real business situations, customers may return products due to damage, wrong shipment, or poor
Rush Sales orders in SAP SD are used when customers need products urgently and expect
Tax Determination in SAP SD is the automated process where the system calculates and applies
