sap sd tax configuration

8/13/2019 SAP SD Tax Configuration

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Service Tax

SAP Labs India Bangalore

OBJECTIVE

This document will detail the configuration required on the SD side to enable computation of Service tax

and ducation !ess in the output Service order"

PROCEDURE: Initial Steps

!reate two new Tax conditions# $S%& $S%" Steps for creation of Tax !ondition is illustrated below

* Create new condition tpes

SAP Standard IMG -> Financial Accounting -> Financial Accounting Global Settings -> Tax on

Sales/Purchases -> Basic Settings -> Check Calculation Procedure" 'Transaction (B)*+

Select ,e!ine Condition T"#es$

Select !ondition T-pe $I./ and !lic0 on !op- as '12+ and give the !ondition t-pe as $S% and the

.ame as 3Service Tax4"

Select !ondition T-pe $I.5 and !lic0 on !op- as '12+ and give the !ondition t-pe as $S% and the

.ame as 3!S on Service Tax4"

O!tco"e# The two tax conditions& one for Service Tax and the second for ducation !ess on Service

Tax have now been created"

/" Create a new tax postin# $e VS% and VS&"

The path for this is#

SP%& Financial Accounting Financial Accounting Global Settings Tax on

Sales/Purchases Basic Settings Check and Change Settings !or Tax Processing

Select the Processing 6e- 78/ and !lic0 on !op- as '12+ and give the 6e- as 9S: and .ame as

,India Service Tax;"

Select the Processing 6e- 78/ and !lic0 on !op- as '12+ and give the 6e- as 9S< and .ame as

,!S on Service Tax;"

'ote: I( t)ere are "!ltiple service tax re#istration n!"ers+ o! need to )ave separate acco!nt

postin# to di((erent ,- acco!nts ased on service re#istration n!"er. T)is can e done

provided a separate tax code is "aintained (or eac) service re#istration n!"er.

To ac)ieve t)is o! need to de(ine a set o( / separate ,0- acco!nts (or service tax and

Ed!cation CESS on service tax respectivel+ (or ever service re#istration n!"er.

In s!c) a case+ please activate "!ltiple acco!nts postin# per tax code as (ollows:

e!ining the G' accounts !or the Ser(ice tax and )CS on Ser(ice Tax*

Copyright 2004 SAP AG. All rights reserved Page 1 of 13


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SP%& Financial Accounting Financial Accounting Global Settings Tax on

Sales/Purchases Posting -> e!ine Tax accounts

=o to Details of the Transaction 9S: 'Service Tax =L account+ and enter the !hart of accounts>

Select the Tax !ode !hec0 Box if -ou want to have Tax !ode Specific =L accounts or Blan0 when

the common =L accounts>

!lic0 on Posting 6e-s

nter the %< as Debit and 5< as !redit"



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!lic0 on Accounts"

nter the =L codes > If -ou have tax code specific =L then enter the tax and =L account"

After completing select the 9S< and do the same steps for !S on Service tax"

1 separate acco!nt (or ever tax code can e "aintained as (ollows:

+o, aintain di!!erent account based on the tax code. Since the tax code ,ill be s#eci!ic !or a

#lant "ou can achie(e #osting to s#eci!ic account !or a #lant. This should be aintained a!ter

con!iguring the tax #rocedure.



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Steps are: 2

3o! )ave to de(ine t)e re4!ired tax codes.

Create separate ,0- acco!nts.

5)ile creatin# t)e postin# $e+ please (ollow t)e c!sto"i6in# settin#s #iven elow:

SP%&Financial AccountingFinancial Accounting Global SettingTax onSales/PurchaseBasic SettingCheck Calculation Procedure

Define Procedures#

Select TA?I.$ and clic0 on control data" The screen will look like as shown below.


7aintain ,0- acco!nts (or ever

tax code at an acco!nt $e level.


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!lic0 on .ew ntries and add the following two entries in -our s-stem>

Step @< and @< the !ondition t-pe $S% and $S% respectivel-" The from step for $S% is /


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Changes to Tax Code*

SP%&Financial AccountingFinancial Accounting Global SettingTax onSales/PurchaseCalculation e!ine Tax Codes !or Sales and Purchases.

!ountr-# I.

nter the Tax code and Tax Curisdiction !ode 'If it is applicable in -our s-stem+"



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nter the /


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Changes to Pricing Procedure*

I+GSales and istributionBasic FunctionsPricingPricing Controle!ine ConditionT"#es.

Select !ondition T-pe $I./ and !lic0 on !op- as '12+ and give the !ondition t-pe as $SE and the

.ame as 3Service Tax4"

Select !ondition T-pe $I.5 and !lic0 on !op- as '12+ and give the !ondition t-pe as $ST and the

.ame as 3!S on Service Tax4"

I+GSales and istributionBasic FunctionsPricingPricing Controle!ine and AssignPricing ProcedureMaintain Pricing Procedures 0/123

Select Pricin# Proced!re J81CT and clic$ on control data.



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Service Tax


Clic$ on 'ew Entries and add t)e step 9& and 9/& and p!t t)e conditions JSER and JSTE

respectivel;

8or condition JSER enter t)e (ro" and to step as && and %& ;

8or condition JSTE enter t)e (ro" step as 9&;

7ar$ ot) t)e condition as 7an!al and Statistical.

Copyright 2004 SAP AG. All rights reserved Page of 13


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-ST0CST Calc!lation C)an#es:

Clic$ on 'ew Entries in t)e Pricin# proced!re and add t)e s!total line 9 and #ive t)e (ro" and to step and 9& to 9/& and "ar$ t)is total

as statistical.



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Service Tax


Clic$ on 'ew Entries in t)e Pricin# proced!re and add t)e s!total line 9%& and C)an#e t)e

Description as =Base Price ? Service Tax> and #ive t)e (ro" and to step and 9@A to 9


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C)an#e t)e step @A description as =Base Price ? Service Tax 0 BED> and t)e (ro" and To step

as 9%& to &&;



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sap sd tax configuration

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