All About SAP CRM Tax Configuration

  • by Raghukul Tilak Mokirala, Senior Consultant, Wipro Technologies
  • April 12, 2012
Understand how to configure SAP CRM tax settings and integrate them with SAP ERP Central Component, financial accounting, managerial accounting, and sales and distribution settings.
Key Concept
In sales or service processing, the determination of taxes plays a vital role. In the majority of the cases in which an SAP ERP Central Component (SAP ECC) back end integration is required, taxes for sales processes (such as sales taxes) are to be defined in SAP ECC and downloaded to SAP CRM. In contrast, taxes for service processes (such as service taxes) are defined in SAP CRM itself. This requires an SAP CRM technical user to be conversant with tax settings in both SAP ECC and SAP CRM.
ECC sales and distribution (SD), financial accounting (FI), and managerial accounting (CO) with SAP CRM, tax configurations are thought to be confusing.

The determination of taxes, however, is an important component of pricing in sales and service processing. Keeping this in mind, I discuss tax configurations in SAP CRM, including prerequisite settings that have to be done in SAP ECC. The takeaway after reading this article is a holistic understanding of how tax settings work across SAP ECC and SAP CRM systems. Understanding the settings enables you to provide quicker, more accurate solutions to real-world problems in the area of taxation. For example:

  • You need to make a decision about the various types of taxes that should be defined based on the country’s legal requirements. In addition you need to know if they have to be created on the SAP ECC side or the SAP CRM side. These decisions are crucial for a seamless implementation of a sales and service process.
  • You have established business rules that no tax should be considered for export sales, or full taxes and half taxes should be applicable in other cases depending on the type of customer and product. However, when a service or sales order is created, the tax is not picked in line with the defined business rules. How and where should the analysis of the issue start?

I first detail the settings that you need to configure in SAP ECC, SD, FI, and CO in a brief introduction to condition technique and tax conditions. I then explain how to configure the necessary settings in SAP ECC, followed by SAP CRM.

Note
The intention of this article is to make the reader understand the concept and functioning of tax settings in a holistic way. However, I highly recommend that you not do the SD and FI settings without proper guidance from those respective teams. An explanation of the Transaction Tax Engine configuration settings used in an SAP CRM billing scenarios is beyond the scope of this article.

Raghukul Tilak Mokirala

Raghukul Tilak Mokirala is a senior consultant with seven years of experience in SAP CRM working for a prestigious multinational client. He has handled various implementations, rollovers, and support projects for reputed clients. His areas of specialization are Sales, Service, Marketing, Mobile Sales, Middleware, and the SAP WebClient UI. He is also knowledgeable in the area of SAP sales and distribution.

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