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 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 LST/CST/VAT Conditions: JIPS JIPC JIPL JIP5 IN Sales tax setoff IN C Sales tax inv. IN L Sales tax inv. A/P RM Deductible

Service Tax Conditions: JSRT A/P Service Tax JEC3 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 JEXP JEXQ JEAP JEAQ JESP JESQ JCEP IN A/R BED IN A/R BED IN A/R BED IN A/R AED % IN A/R AED Qty IN A/R SED % IN A/R SED Qty IN A/R CESS %

JCEQ JEXT JEAT JEST JCET JECT

IN A/R CESS Qty IN A/R BED total IN A/R AED total IN A/R SED total IN A/R CESS total 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 JCSR JLST JLSR IN A/R CST IN A/R CST Surcharge IN A/R LST IN A/R LST Surcharge

Export Conditions: JFRE IN Frieght JINS 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 sale JINEXP IN:Exports JINFAC IN:Factory sale JINSTO 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 Duty Selecting Tax Calculation Procedure Use In 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 Cty. Name Proc. Description Country Name of the country Procedure User action and values IN India ZAXINN defaulted Note

Maintaining Excise Defaults Use In 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 SPRO

Transaction Code

On the Tax Default Information: screen, make the following entries: Choose New Entries icon for maintaining the new entries. Field name Tax proc. CVD Cond. Exp tax cd Tax jur.cd Description Tax procedure CVD condition type Expected Tax code Tax jurisdiction code User action and values TAXINN JCV1 Note

A/P BED Cond A/P BED condition type A/P SED cond A/P SED Condition type

Field name A/P AED cond A/R BED cond A/R SED cond

Description A/P AED condition type A/R BED condition type A/R SED condition type

User action and values

Note

A/R AED cond A/R AED condition type A/R CESS cond BED perc AED perc SED perc Cess per NCCD AP NCCD AR NCCD Perc ECS AP A/R CESS condition type BED percentage condition type AED percentage condition type SED percentage condition type CESS percentage condition type NCCD Condition type AP NCCD Condition type AR NCCD Percentage Education Cess condition type AP Education Cess condition type AR Education Cess condition type percentage Education Cess condition type AP Imports JECV

ECS AR

ECS Perc

ECS Cond.

Choose Enter complete the entries Save the entries. Result

Data was saved. Condition Based Excise Determination Defining Tax Codes for Purchasing Documents Use In 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 SPRO

Transaction Code

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 conditionbased 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 SPRO

Transaction Code

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 .