What is tax determination procedure in SAP LO - Logistics - General?

SAP Term: tax determination procedure

• Component: LO

• Component Name: Logistics - General

• Description: Calculation procedure used for calculating the tax amount, according to the legal requirements of the relevant country. &EXAMPLE& It can be used to calculate the value-added tax for a purchase order.

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• Key Concepts: 
  Tax determination procedure is a feature of the SAP Logistics system that allows users to determine the correct tax rate for a given transaction. It is based on the country, region, and other factors such as the type of transaction and the customer's tax status. The procedure is used to ensure that the correct amount of taxes are applied to each transaction.
  
  How to use it: 
  The tax determination procedure is used to determine the correct tax rate for a given transaction. The procedure takes into account the country, region, and other factors such as the type of transaction and the customer's tax status. Once the correct tax rate has been determined, it is applied to the transaction.
  
  Tips & Tricks: 
  When setting up a tax determination procedure, it is important to ensure that all relevant information is taken into account. This includes the country, region, type of transaction, and customer's tax status. Additionally, it is important to ensure that any changes in tax rates are updated in the system in a timely manner.
  
  Related Information: 
  For more information on setting up and using a tax determination procedure in SAP Logistics, please refer to SAP Help documentation or contact your local SAP support team.