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.
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