9/25/13 Tax Procedures – TAXINJ | SAP FICO Docs

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CONDITION RECORDS, CONDITION TYPES, OBBG, OBYZ, SAP CIN, TAX PROCEDURES,TAXINJ, TAXINN

Tax Procedures – TAXINJ

September 18, 2013What is the difference between maintaining tax codes in TAXINJ and TAXINN

Both procedure TAXINJ and TAXINN has thin line difference where as TAXINN procedure is condition

based & TAXINJ is fomula based.If you drag down details of TAXINJ is fomula based,where you canfind Routine( selection with logic in line of condition type) are play vital role in tax calculation.

If you selected TAXINN procedure , you can maintained tax rate with respective condition types in

FTXP during creation of tax code.But you should maintain condition record in FV11 t.code for

condition types JMX1 & JMX2 are as 100%. Also you can maintain tax rate for condition types BasicExcise Duty,Edu cess , H. Edu cess,VAT/CST in FV11 t.code in stead of maintaining tax rate in FTXP.

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1. TAXINJ is a tax calculation procedure for country version India and it supports formula-based excise determination. You need to configure this tax calculation procedure

Excise Conditions

⇒ JMOD IN: A/R BED

⇒ JNED IN: A/R NCCD

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⇒ JAED IN: A/R AED

⇒ JSED IN: A/R SED

⇒ JCES IN: A/R Cess

⇒ JECS A/R Educational CESS

LST/CST/VAT Conditions

⇒ JIN1 IN: A/R CST

⇒ JIN2 IN: AR LST

⇒ JIN4 IN: A/R CST Surcharge

⇒ JIN5 IN: AR LST Surcharge

⇒ JIN6 A/R VAT Payable

⇒ JIN7 A/R CST Payable VAT

Service Tax Conditions

⇒ JSE4 Service Tax

⇒ JES4 ECS on Service Tax

2. Set up the following Account Key

IMG ⇒Financial Accounting ⇒ Financial Accounting Global Settings ⇒ Tax on Sales/Purchases⇒ Basic Settings ⇒ Check and Change Settings for Tax Processing.

⇒ VS6 Input Tax

3. Define the Tax Procedure according to the settings in the figures below.

You can do this in the IMG ⇒ Financial Accounting ⇒ Financial Accounting Global Settings ⇒ Tax on

Sales/Purchases ⇒ Basic Settings ⇒ Check Calculation Procedure ⇒ Define Procedures. Tcode:OBBG

4. Assign Tax Procedure to the country.

You can do this in the IMG ⇒ Financial Accounting ⇒ Financial Accounting Global Settings ⇒ Tax onSales/Purchases ⇒ Basic Settings ⇒ Assign Country to Calculation Procedure. Tcode:OBYZ

The standard system comes with two tax calculation procedures. TAXINN is only supports condition-based excise determination, whereas TAXINJ supports condition-based excise determination andformula-based excise determination.

Both tax procedures contain condition types that cover all of the excise duties and sales taxes applicable.

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Since the exact rates of excise duty can vary on a large number of factors, such as which vendor youpurchase a material from, or which chapter ID the vendor stocks the material under, you createcondition records for every sort of excise duty.

When you come to enter a purchasing document, the system applies the excise duty at the rates you

have entered in the condition records.

Activities,

Customizing

Make the settings in Customizing for Logistics u2013 General, by choosing Taxes on GoodsMovements ⇒ India ⇒ Basic Settings ⇒ Excise Duties Using Condition Technique and u2026 ⇒Account Determination.

These activities include one activity where you define a tax code for condition-based excisedetermination.

Master Data

Create condition records for all excise duties that apply, and enter the tax code for condition-based

excise determination in each.

TAXINN Vs TAXINJ:

Definition: condition-based excise determination

A method that the system uses of determining excise duty in India.

This method requires you to create condition records for each combination of vendor or customer andmaterial (and possibly other conditions).When you create a purchasing document, the system calls thetax procedure assigned to India. The tax procedure finds all of the condition records that you havecreated for that combination of vendor and material.

When you create a sales document, the excise duties and sales taxes are determined by the pricing

procedure (not the tax procedure).

Definition: formula-based excise determination

A method that the system uses of determining excise duty in India.

This method was used in the Country Version India Add-On and requires you to maintain additional

data in the Excise Rate Maintenance transaction, J1ID.

When you create a purchasing document, the system calls the tax procedure assigned to India. Each of

the excise duties in the tax procedure has its own condition types, and each condition type is assigned toa formula. This formula instructs the system to calculate the excise duty using the data that you have

maintained in the Excise Rate Maintenance transaction.

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When you create a sales document, the system determines the excise duties and sales taxes using the

pricing procedure (not the tax procedure).

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