What is tax determination procedure in SAP PP - Production Planning and Control?

SAP Term: tax determination procedure

• Component: PP

• Component Name: Production Planning and Control

• Description: A method of determining taxes according to the legal requirements of a country. For example, using the tax determination procedure, you can determine the value-added tax of a purchase order.

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• Key Concepts: 
  Tax determination procedure is a feature of SAP Production Planning and Control (PP) that allows users to define the tax rate for a particular product or service. This procedure is used to ensure that the correct tax rate is applied to the product or service when it is sold. The tax rate can be determined based on the country, region, or other criteria. 
  
  How to use it: 
  To use the tax determination procedure in SAP PP, users must first define the tax rate for each product or service. This can be done by entering the applicable tax rate in the “Tax Rate” field of the product or service master data. Once this is done, the system will automatically apply the correct tax rate when the product or service is sold. 
  
  Tips & Tricks: 
  It is important to ensure that all products and services have an accurate and up-to-date tax rate defined in their master data. This will help to ensure that the correct tax rate is applied when the product or service is sold. Additionally, it is important to regularly review and update any changes in tax rates as they occur. 
  
  Related Information: 
  For more information on how to use the tax determination procedure in SAP PP, please refer to SAP Help documentation. Additionally, there are many online resources available that provide detailed instructions on how to use this feature.