tax inn 1
TRANSCRIPT
SAP CIN Customizing For Logistics – Condition based taxes (TAXINN)
Customizing for the Excise / Sales Tax / Service Tax and VAT in Logistics Transactions
In Country India there are two types of Tax Procedure used. One is TAXINJ that is formula based Excise and Sales tax calculation and the other one TAXINN which is condition Technique.
The following are the Configuration and process note for the Condition based Tax Calculation (TAXINN).
Customer is not going to use any Tax Jurisdiction code for the Tax procedure using in India for handling Excise Duty and Sales Taxes.
Tax Procedure Setting up.
Access Sequence Setting up.
Menu Path: SPROFinancial Accounting Financial Accounting Global SettingTax on Sales / PurchasesBasic Setting Check Calculation Procedure Access Sequences.
Access Sequence Required for CIN is JTAX & JST1.The access sequences were already there in Jabil system and no modification has been carried out.
Condition Type Setting:
Menu Path: SPROFinancial Accounting Financial Accounting Global SettingTax on Sales / PurchasesBasic Setting Check Calculation Procedure Define Condition Types.
For formula bases Tax Calculations the MM tax conditions alone present in the Tax procedure TAXINN the SD procedure will be there only in SD Pricing Procedure.
MM Excise Conditions:
JMOP IN: BED setoff %JMOQ IN: BED setoff QtyJAOP IN: AED setoff %JAOQ IN: AED setoff QtyJSOP IN: SED setoff %JSOQ IN: SED setoff QtyJMIP IN: BED inventory %JMIQ IN: BED inventory QtJAIP IN AED inventory %JAIQ IN AED inventory QtyJSIP IN SED inventory %JSIQ IN SED inventory QtyJMX1 IN: A/P BED setoffJAX1 IN: A/P AED setoffJSX1 IN: A/P SED setoffJMX2 IN: A/P BED inventorJAX2 IN: A/P AED inventorJSX2 IN: A/P SED inventorJECP IN:A/P e-cess setoffJECI IN: Eces inventoryJEX1 IN: A/P ecs setoffTJEX3 IN: A/P ecs invT
LST/CST/VAT Conditions:
JIPS IN Sales tax setoffJIPC IN C Sales tax inv.JIPL IN L Sales tax inv.JIP5 A/P RM Deductible
Service Tax Conditions:
JSRT A/P Service TaxJEC3 A/P ECS for ST
Percentage Based:
Quantity Based:
CST/LST/VAT Condition:
Service Tax Condition:
Tax Procedure Setting:
Menu Path: SPROFinancial Accounting Financial Accounting Global SettingTax on Sales / PurchasesBasic Setting Check Calculation Procedure Define Procedures.
The tax procedure TAXINN was not there and it has been created.
Note: The latest changes of Educational CESS / VAT has not been created and added to TAXINN procedure.
Account Key Setting:
Menu Path: SPROFinancial Accounting Financial Accounting Global SettingTax on Sales / PurchasesBasic Setting Check Calculation Procedure Check and Change Setting for Tax Processing.
List of Account Key:
The following account key has been newly created for the Excise postings.
VS6 Input Tax
Assignment of Tax Procedure to Country.
Menu Path: SPROFinancial Accounting Financial Accounting Global SettingTax on Sales / PurchasesBasic Setting Check Calculation Procedure Assign Country to Calculation Procedure.
Assigned the Tax procedure TAXINN to Country IN.
SD Pricing Setting:
Condition types Setting:
Menu Path: SPRO-->Sales and DistributionBasic FunctionsPricingPricing controlDefine Condition typesMaintain Condition Types.
Excise Conditions:
All the Excise and Sales tax conditions will be created only in SD. For Sales tax conditions the Condition category and Class will be ‘D’ – Taxes. For Excise Conditions the Condition Class is ‘A’ – Discount / Surcharge.
The Following are the Excise conditions which have been created.
JASS IN A/R BEDJEXP IN A/R BEDJEXQ IN A/R BEDJEAP IN A/R AED %JEAQ IN A/R AED QtyJESP IN A/R SED %JESQ IN A/R SED QtyJCEP IN A/R CESS %
JCEQ IN A/R CESS QtyJEXT IN A/R BED totalJEAT IN A/R AED totalJEST IN A/R SED totalJCET IN A/R CESS totalJECT IN A/R ECS total
Since there is no Formula or J1ID transaction will be used in the TAXINN Concept. So there will be three conditions for a given excise component. For example for BED the JEXP condition is the BED Percentage condition and JEXQ is the BED Quantity based Condition. There will be one total condition for BED that is JEXT which will have the total value of JEXP and JEXQ.
LST/CST Conditions:
JCST IN A/R CSTJCSR IN A/R CST SurchargeJLST IN A/R LSTJLSR IN A/R LST Surcharge
Export Conditions:
JFRE IN FrieghtJINS IN Insurance
Access Sequence Setting:
Menu Path: SPRO-->Sales and DistributionBasic Functions PricingPricing controlDefine Access Sequence Maintain Access Sequences.
Access Sequence JDUM will be used in all the Excise total conditions. For Excise Percentage and Quantity based the Access sequence is JEXC and for CST the access sequence is JCST and for LST the access sequence is JLST.
Pricing Procedure Setting:
Menu Path: SPRO-->Sales and DistributionBasic Functions PricingPricing controlDefine and Assign Pricing Procedure Maintain pricing procedures
There are four Pricing Procedures which are used in the Indian taxes for the condition based Tax calculation. All these procedures were created. JINDEP IN:Depot saleJINEXP IN:ExportsJINFAC IN:Factory saleJINSTO IN:stock transfer
Pricing Procedure JINFAC:
The Pricing Procedure determination should set up based on the Organization structure.
Note: The Excise conditions are directly posted as SD conditions so the account assignment for EXD account key should be carried out in SD VKOA transaction.
For Sales tax conditions, since the conditions are created as tax conditions the account key will be taken from the SD Pricing procedure which has been assigned and the same account key will be determined in FI and take the GL account assignment from the FI.
Determination of Excise DutySelecting Tax Calculation ProcedureUseIn this IMG activity, you define which tax procedure and pricing condition types are used in calculating excise taxes using formula-based excise determination. Procedure Access the activity using one of the following navigation options:
IMG Menu J05 - Materials Management Logistics General Tax on Goods Movements India Basic Settings Determination of Excise Duty Select Tax Calculation Procedure
Transaction Code SPRO
On the Assign Country Calculation Procedure: screen, make the following entries:
Choose New Entries icon for maintaining the new entries:
Field name Description User action and values Note
Cty. Country IN
Name Name of the country
India defaulted
Proc. Procedure ZAXINN
Maintaining Excise Defaults
UseIn this IMG activity, you define which tax procedure and pricing condition types are used in calculating excise taxes using formula-based excise determination. Procedure Access the activity using one of the following navigation options:
IMG Menu J05 - Materials Management Logistics General Tax on Goods Movements India Basic Settings Determination of Excise Duty Maintain Excise Defaults
Transaction Code SPRO
On the Tax Default Information: screen, make the following entries:
Choose New Entries icon for maintaining the new entries.
Field name Description User action and values Note
Tax proc. Tax procedure TAXINN
CVD Cond. CVD condition type
JCV1
Exp tax cd Expected Tax code
Tax jur.cd Tax jurisdiction code
A/P BED Cond A/P BED condition type
A/P SED cond A/P SED Condition type
A/P AED cond A/P AED condition type
Field name Description User action and values Note
A/R BED cond A/R BED condition type
A/R SED cond A/R SED condition type
A/R AED cond A/R AED condition type
A/R CESS cond
A/R CESS condition type
BED perc BED percentage condition type
AED perc AED percentage condition type
SED perc SED percentage condition type
Cess per CESS percentage condition type
NCCD AP NCCD Condition type AP
NCCD AR NCCD Condition type AR
NCCD Perc NCCD Percentage
ECS AP Education Cess condition type AP
ECS AR Education Cess condition type AR
ECS Perc Education Cess condition type percentage
ECS Cond. Education Cess condition type AP Imports
JECV
Choose Enter complete the entries
Save the entries.
Result
Data was saved.
Condition Based Excise DeterminationDefining Tax Codes for Purchasing DocumentsUseIn this IMG activity, you define which tax codes are applicable for Purchasing documents. In TAXINN – condition based excise determination, the tax code does not play a role. It is more like a dummy to be entered in the Purchase Order.
Procedure Access the activity using one of the following navigation options:
IMG Menu J05 - Materials Management Logistics General Tax on Goods Movements India Basic Settings Determination of Excise Duty Condition Based Excise Determination Define Tax Codes for Purchasing Documents
Transaction Code SPRO
Enter the Country code: IN in the pop – up.
Enter V0 under Tax Code & choose Enter.
A pop-up appears. Enter the description of the Tax Code. Enter the tax type as V (Input Tax)
Do not make any entries. Choose Save.
Assignment of Tax Code to Company Codes
Use
The purpose of this activity is assigning the tax code for purchasing documents to the company codes where it will be used. This activity is done if you use condition-based excise determination.
Procedure Access the activity using one of the following navigation options:
IMG Menu J05 - Materials Management Logistics General Tax on Goods Movements India Basic Settings Determination of Excise Duty Condition-Based Excise Determination Assign Tax Code to Company Codes
Transaction Code SPRO
On the Change view “Tax Codes for Excise Duties Using Condition Techniques”: screen, make the following entries.
Choose New Entries icon and input BP01 and BP0X under Company Code and input V0 tax code beside company codes or under Tax Code.
Enter to continue
Choose Save .