Answer / eldi

It looks at the Tax Code entered or derived in the document
and then looks up the tax rate maintained for the tax code.
This rate is then applied to arrive at the tax amount for
the various condition types

Answer / minesh

The sytem calculates the Taxes based on the Tax rates maintained in a tx code, the Caluctaion is based on the taxing procedure assigned to the Country.

Non deductible tax is identified based on the Account key assigned to the Condition type in the Taxing procedure.
The Non deductible tax Account keys are
NAV - Non-deduct.input tax ( This will distribute the tax into a new line item)

NVV - Non-d.input tax dist ( this will Distribute to relevant expense/revenue items )

Answer / bhumistar

System calculated Tax , based on Tax Rate maintained in FV11 on different combinations like Country/Plant Region/Vendor Region/Material Tax type like wise.
In S4/HANA , system auto determine PO TAX which has already maintained in FV11.
If master data has maintained properly then System calculated its Tax Rate of the material.

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