tax procedure - TAXINN & TAXINJ

[Former Member]

Dear all,

can anyone give me the major diff. between taxinn and taxinj procedure.. .why i company wants to choose taxinn instead of taxinj and same againt taxinj vs. taxinn???...

what's the merits and demerits between each proceudres and how it makes difference???

[Former Member · Accepted solution]

Hi Mahesh,

Taxinj: Is formula based excise determination, which leads to create tax code in FTXP and assignment of tax code to company code. And later on mantain the formulas for each tax calculations in the J1ID transaction.

In contrast

Taxinn: is the condition based excise determination, wherein you create tax code in FTXP assignment of tax code to company code and then crete the condition records for diffrent condition types in FV11 transaction using diffrent key combination.

The thing is every times the budgets changes you will have to change the formulas which is very time consuming and lots of efforts need to be made for the same. Where as in Taxinn you have to create a new tax code and new condition records no need ot change the old records.. They can be left as they are for reporting purpose.

Hopefully it clears you doubt.

Regards

Sujoy

[former_member192897]

TAXINJ is formula based TAX Calculation Procedure for INDIA and is the most predominantly used Procedure in India, WHILE TAXINN is condition based TAX Calculation procedure, except for a handful of companies, others haven't opted for TAXINN.

TAXINN minimises the use of ABAP routines.

Only a few companies are using TAXINN right now. However with the advent of New Dimension products of SAP which use IPC, Billing and Tax Engines, it is advisable to start any impementation with TAXINN only, for future integaration. All companies which have used TAXINJ and are opting for CRM/SRM are swithching over to TAXINN, which in itself is a huge effort involved.

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[former_member581212]

Hi,

If you use condition-based excise determination, use a copy of the tax procedure TAXINN.

If you use formula-based excise determination, use a copy of the tax procedure TAXINJ. This tax procedure also supports condition-based excise determination, so that you can work with both concurrently.

SAP strongly recommend that new customers use condition-based excise determination. Note that once you have started using a tax procedure, you cannot switch to another one, otherwise you will not be able to display old documents.

TAXINJ:

1. It is Formula Based Tax procedure.

2. It was most commonly used upto intial phase of R/3 4.7, but the latter implementations were with TAXINN.

3. Tax Code plays a vital role, as the Tax Rate are maintained in Tax Code.

4. It is complex compared to TAXINN

TAXINN:

1. It is Condition Based Tax procedure.

2. Tax Code is required to be maintained in Condition Record, & if Tax Code is not found in Condition Record, Sales Cycle will go upto billing, but not release to accounting. Hence even a single Tax code may suffice trhe requirement for different Tax rate.

Regards

Priyanka.P