What is tax category in SAP AP-TTE - CRM Transaction Tax Engine?

SAP Term: tax category

• Component: AP-TTE

• Component Name: CRM Transaction Tax Engine

• Description: A distinct grouping of taxes to which tax types belong. Tax categories include: Sales Tax Withholding Tax Excise Tax &Example& The tax type MWST German VAT is assigned to the tax category SALES.

Smart SAP Assistant

• Key Concepts: 
  Tax category is a component of the SAP AP-TTE CRM Transaction Tax Engine. It is used to classify taxes according to their type, such as sales tax, value-added tax, or excise tax. The tax category is used to determine the applicable tax rate for a particular transaction. 
  
  How to use it: 
  The tax category is used to determine the applicable tax rate for a particular transaction. This is done by assigning a tax category to each transaction and then using the assigned tax category to look up the applicable tax rate in the SAP system. The tax rate can then be applied to the transaction. 
  
  Tips & Tricks: 
  It is important to ensure that the correct tax category is assigned to each transaction in order to ensure that the correct tax rate is applied. Additionally, it is important to keep track of any changes in the applicable tax rates so that they can be updated in the SAP system accordingly. 
  
  Related Information: 
  The SAP AP-TTE CRM Transaction Tax Engine also includes other components such as Tax Jurisdiction and Tax Type which are used in conjunction with the Tax Category component. Additionally, there are other components of the SAP system which are related to taxes such as Tax Calculation and Tax Reporting.