HP-15C_Calculator-2

There are many reasons why you will need to create a tax dynamic exception. Just to mention an example, the ICMS is based on the combination of Ship From and Ship To region, and the table J_1BTXIC1 is maintained with this combination.

However, not always it is like that. There are certain situations where the ICMS Rate or the ICMS Base for example, needs to be overwritten, for a specific customer, or product or even for one Specific Customer and Product only, while other products sold to the same customer they follow the regular rate and/or base…

One other example, and this came with the changes proposed by the Adjust SINIEF 19 and 20 and also the 13th Senate Resolution, it is, when imported goods are sold to outside of the origin state, the ICMS is 4% (and not the regular interstate rate).

By reaching the transaction J1BTAX*, you will be able to maintain taxes dynamic exceptions.

I am not going through one by one of those entries, but I did highlighted the entries that will accept tax dynamic exceptions by using the tax groups that you created as per my last post instructions.

J1BTAX Main

* You can also reach the entries above by using the individual transactions below:

Maintain Default Tax Rates Values S_ALR_87003324
Maintain IPI Values S_ALR_87003326
Maintain IPI Material exception S_ALR_87003329
Maintain IPI Dynamic exception S_ALR_87100870
Maintain ICMS Values S_ALR_87003332
Maintain ICMS Material dependent exception S_ALR_87003334
Maintain ICMS Dynamic exception S_ALR_87100868
Maintain ICMS Complement exception S_ALR_87003230
Maintain Subtrib values S_ALR_87003232
Maintain Subtrib Material dependent exception S_ALR_87003236
Maintain Subtrib Dynamic exception S_PL0_09000292
Maintain ISS Values S_P6D_40000012
Maintain PIS Values S_P6D_40000013
Maintain COFINS Values S_P6D_40000014
Maintain Withholding Tax Rates and Assign Official Collection Codes S_P6D_40000030

Let’s see an example:
If we go to the entry “Maintain ICMS Values” and pick for example the combination of Ship from: SP and Ship to: RS you will see that the regular interstate rate between those two regions is 12%

J_1BTXIC1

So, when entering a Sales Order to a customer in RS where the shipping plant is in SP, the ICMS will be 12% based on the rule above:

Conditions Sales Order

However, based on a law changes in place since 2013, the ICMS Rate for imported products sold to outside of the origin state is 4%.
SAP will always read the tax rates in the following sequence:
1 – Dynamic Exceptions Tables (Such as J_1BTXIP3, J_1BTXIC3, J_1BTXPIS, J_1BTXCOF and etc.)
a) Starting from lowest group to highest

2 – Material Dependent Tables (Like J_1BTXIP2, J_1BTXIC2 and etc.)
3 – Standard Tax Tables (Example: J_1BTXIP1, J_1BTXIC1 and etc.)
4 – Default Tax Rates (J_1BTXDEF table)

So, I can’t just go to J_1BTXIC1 and change the Combination of SP to RS from 12% to 4% because, the standard rate is 12% and ONLY when goods are imported, the ICMS will be 4%… So, I would be able to build the “exception” using the J_1BTXIC2, but, this would require MANY entries (depending on the number of imported material and the states that you sell, thousands of entries).
Since the Material Origin is in the Material Master Records (MBEW-MTORG) you can use a group for ICMS based on Material Origin.

Check on previous post, this is represented to me as group 80:

Tax Groups

So, I entered the following entry:
J_1BTXIC3-80

After saving the entry above, I did update the pricing on my order and the result is:
Conditions Sales Order2

You can also change the calculation base, instead of using 100%, you may need to calculate certain tax over a reduced base.

Sometimes, users may complain and say that an order is calculating the incorrect tax rate or base for an specific order, and the easiest way to identify where the rate/base is coming from, is hitting the button “Analysis” at conditions view:

Navigate to the Tax Rate Condition that user mentioned it is incorrect, in this example, the ICMS, tax condition ICVA.
You will see that an exception was found on group 80 to calculate 4% based on the combination of Ship From SP, Ship To RS and Material Origin 1. As the law says that in this case the tax rate is 4%, you may discuss with the user, because if he insist that the rate supposed to be 12%, that means the product is not imported, and in this case, the Material Origin at Material Master Records should not be 1, but Zero instead.

ICVA Analysis

The examples above, the usage of Tax Rate Tables are valid for MM and SD (Purchase Orders and Sales Orders). The Standard Tables and the Material Dependent Tables are valid for both MM and SD at the same time, while the Dynamic Exceptions can be valid for SD only, MM only or both (as explained on my previous Post).
The combination of tax groups can lead you to infinite possibilities of calculating the correct tax rate for your business, and usually, the tax department (business) is responsible for maintaining those entries.
I do not recommend give access to the J1BTAX transaction as it contains entries to other technical data. So, you can give access to the individual transactions. Check more information about this in my next posting…

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