SAP CIN-  MM Customizing For Tax Procedure-  TAXINNupdated Apr 2, 2011 2:14 pm | 29,433 views

Contents   [Hide TOC]1 Introduction2 Customizing for Tax Procedure – TAXINN3 Access Sequence4 Condition Type5 MM Excise Conditions:6 LST/CST/VAT Conditions7 Service Tax Conditions8 Tax Procedure Setting9 Account Key Setting10 Assignment of Tax Procedure to Country11 Maintaining Excise Defaults12 Formula-based excise determination13 Condition Based Excise Determination14 Defining Tax Codes15 Assignment of Tax Code to Company Codes[edit]

IntroductionIn one of the previous articles, taxation procedure for Country version India was discussed in detail. This was basically about the calculation of various types of taxes on sales/purchases and goods movements within India., including excise & custom duties, In the standard SAP system there are two types of Tax Procedure for Country Version India. One is TAXINJ, that is formula based Excise and Sales tax calculation and the other one is TAXINN, which is condition based Technique.[edit]

Customizing for Tax Procedure – TAXINNFollowing is the step by step Configuration setting for Condition based Tax Calculation (TAXINN). Under this configuration setting, Tax Jurisdiction code is not discussed for handling Excise Duty and Sales Taxes.[edit]

Access Sequence Access Sequences. Check Calculation ProcedureTax on Sales / Purchases Financial Accounting Global SettingFinancial AccountingMenu Path: SPROStandard Access Sequence for tax procedure is JTAX & JST1. So we can use these without any modification. But if there is any specific requirement from client we can create a new Access Sequence by copying and modifying the existing one to meet that requirement. Here, I will go with the standard one without any modification.[edit]

Condition Type Define Condition Types. Check Calculation ProcedureSetting Tax on Sales / Purchases Financial Accounting Global SettingFinancial AccountingMenu Path: SPROFor formula bases Tax Calculations the MM tax conditions alone present in the Tax procedure TAXINN. Setting related to the SD procedure will be carried out only in SD Pricing Procedure and these setting will be totally independent of MM settings. So the tax condition types shown below are related to MM only and these will form the tax procedure TAXINN only. Here, I would also like to highlight that tax condition used in procedure TAXINN is not the same as we use in the procedure TAXINJ.

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MM Excise Conditions:JMOP IN: BED setoff % JMOQ IN: BED setoff Qty JAOP IN: AED setoff % JAOQ IN: AED setoff Qty JSOP IN: SED setoff % JSOQ IN: SED setoff Qty JMIP IN: BED inventory % JMIQ IN: BED inventory Qt JAIP IN AED inventory % JAIQ IN AED inventory Qty JSIP IN SED inventory % JSIQ IN SED inventory Qty JMX1 IN: A/P BED setoff JAX1 IN: A/P AED setoff JSX1 IN: A/P SED setoff JMX2 IN: A/P BED inventor JAX2 IN: A/P AED inventor JSX2 IN: A/P SED inventor JECP IN:A/P e-cess setoff JECI IN: Eces inventory JEX1 IN: A/P ecs setoffT JEX3 IN: A/P ecs invT[edit]

LST/CST/VAT ConditionsJIPS IN Sales tax setoff JIPC IN C Sales tax inv. JIPL IN L Sales tax inv. JIP5 A/P RM Deductible[edit]

Service Tax ConditionsJSRT A/P Service Tax JEC3 A/P ECS for ST[edit]

Tax Procedure Setting Define Procedures. Check Calculation ProcedureTax on Sales / Purchases Financial Accounting Global SettingFinancial AccountingMenu Path: SPROTax calculation procedures TAXINN containing the necessary specifications with grouping of above mentioned tax condition types, for the purpose of calculation and posting of taxes on sales/purchases have already been defined in the standard SAP system for Country Version India. The latest changes of Educational CESS and VAT needs to be added to the TAXINN procedure.

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Account Key Setting Check and Change Setting for Tax Processing.ProcedureBasic Setting Tax on Sales / PurchasesAccounting Global SettingFinancial AccountingThe following are the standard account keys used in the TAXINN procedure. In addition to these, if required, new account keys can also be created by copying the existing one and same needs to be assigned to the procedure.ESA - Output acquisitn tax ESE - Input acquisitn tax VS1 - Sales tax 1 VS2 - Sales tax 2 VS3 - Sales tax 3 NVV - Non-d.input tax dist VS5 - Input Tax PST Gross[edit]

Assignment of Tax Procedure to Country Assign Country to Calculation Procedure.ProcedureBasic Setting Tax on Sales / PurchasesAccounting Global SettingFinancial AccountingCountry IN - Tax procedure TAXINN[edit]

Maintaining Excise Defaults Maintain Excise Defaults Determination of Excise Duty Settings India Tax on Goods Movements Menu Path: Materials Management [edit]

Formula-based excise determinationIf formula-based excise determination is used, define the tax procedure TAXINN and all pricing condition types used for calculating excise taxes, here it is always recommended that these values

(purchasing and sales condition types) should be updated in consultation with SD consultants. Following needs to be specify under this activity:

Basic excise duty,Additional excise duty,Special excise duty,CessConditions in the sales order that are used for excise rates.Countervailing duty condition type used for import purchase orders.[edit]

Condition Based Excise DeterminationIf condition-based excise determination is used, fill out the CVD cond. field and leave all the others blank in the above mentioned activity. For using condition based Excise Determination define the input tax codes for country India and procedure TAXINN and assign the same to the company code by using the following menu path:[edit]

Defining Tax Codes Define Tax Codes for Purchasing DocumentsExcise Determination Determination of Excise Duty India Tax on Goods Movements Materials Management [edit]

Assignment of Tax Code to Company Codes Assign Tax Code to Company CodesDetermination Determination of Excise Duty Tax on Goods Movements Logistics General Materials Management

On completion of above settings in SPRO the MM part of tax calculation procedure TAXINN is complete.Related White Papers and Webcasts2010 Essential Features of Manufacturing ERP Software2011 3 Key ERP Features and How to Use Them Effectively2011 ERP Modules for Different Business TypesShow more White PapersRelated ContentThe Government want to tax all Internet salesExcise_Data_Material_Master_-_MM (Wiki)Transaction Tax Vendors in Brazil/China/IndiaDisclaimer: IT Wiki is a service that allows content to be created and edited by anyone in the community. Content posted to this site is not reviewed for correctness and is not supported by Toolbox.com or any of its partners. If you feel a wiki article is inappropriate, you can either correct it by clicking "Edit" above or click here to notify Toolbox.com.