Hi SAP MM Experts,
I have a mind boggling experience on the tax code determination using pricing condition records (MEK1) and contracts (ME31K). If it is possible, I would like your help to clarify or point me to a right direction with respect to the following discussion.
Business Scenario:
In a typical business scenario, a certain material purchase from any vendor should have a 7% tax rate (for this case, let's assume it's V1). Nevertheless, there are one similar transaction (same material, but different vendor or different document currency) can lead to a 0% tax rate (let's assume it's V0).
Solution:
We built in a pricing condition record with a default access sequence with the tax code V1 and created a contract for that specific vendor with tax code V0
Test Scenario:
1. When we create material purchases from any vendor, the tax code is automatically determined as V1 (Which is OK)
2. When we create material purchases from that specific vendor and entered the Contracts in PO, the tax code is still determined as V1 (Which is not OK)
Conundrum:
Doesn't the tax code determination works like price determination where the value is taken from contracts instead of master data (in the event we specify the contracts in the PO)?
Key facts:
1. Access sequence was built based on material type, material tax indicator, plants and countries as its key parameter.
2. Condition type that is relevant to tax (e.g. MWST, NAVS, or NAVM) are duplicated and retained in one pricing procedure as a reference (custom vs standard cd type in one pricing procedure).
3. Info Record Maintenance will not be available to the business users.
Thank you very much for aiding my journey in discovering the wonderful logic behind all of the SAP Pricing Determination again.