Creating or Maintaining a Tax Classification  

what is a tax classification

Use

Use this transaction to identify well completions, measurement points, or divisions of interest that qualify for reduced rates.   You can assign a tax class or classes, and for New Mexico only, a school district code, to a particular property/division of interest (DOI), measurement point, or well/well completion by major product.

A tax classification represents general information, such as deduction rules, that apply to each tax type.   A tax class represents a variation of a specific tax rate.   For example, the default rate for a severance tax may be 6%, but for a disadvantaged area, the rate may

be less.   There could be, therefore, within a tax classification, a tax class such as “disadvantaged area”, which represents a rate lower than the normal default rate.

Procedure

1.   From the SAP Easy Access screen, choose Logistics ® Production and Revenue Accounting ® Revenue Accounting ® Valuation ® Tax Master Data ® Tax Classification.

The Tax Classification: Initial Screen appears.

2.   Choose Create.

The Create Tax Classification: Application Maintenance Form appears.

3.   Specify an entity for which to enter a tax class and/or school district code.

Options for Entering Tax Classification Data

Source: help.sap.com

Category: Insurance

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