Taxinn for sd needed or not

[Former Member]

Hello experts

Is it necessary to create Tax code for excise determination in

TAXINN in SD Scenario. While maintaining condition record (

JEXP) for Excise access sequence JEXC doesnu2019t has Tax

Code field Whereas for Sale Tax determination (

JCST/JLST) access sequence JLST /CST which has Tax code

field . (In TAXINN we create Dummy tax code (blank))

is it true whatever I have written ? If yes then what is

use of tax code where it triggers in FI Posting? Why we use

only for Sale Tax not for Excise duty?

[Former Member · Accepted solution]

Hi Ramesh,

By Default, when we maintain a Condition type with Condition class as Taxes the system introduces a Field for Tax code to be filled which is generally a mandatory field for Tax rate maintainence.

Hence though the rates are not maintained in the Tax Codes itself but in the Conditions we have to maintain the Tax Codes.

If you are using TAXINN, then the Tax Codes are just for the Dummy purpose to classify the rates. Again unlike TAXINJ you need not have to create a new Tax Code every time a new tax rates are introduced.

Regards,

Karthik.

[Former Member · Accepted solution]

when we maintain a Condition type with Condition class as Taxes the system introduces a Field for Tax code to be filled which is generally a mandatory field for Tax rate maintainence.

Cant we maintain the tax code without the taxinn settings in the system?

Now i am configuring the pricing in my IDES server for sd, i dont have any FI settings in place ie taxinn procedure , cant I have the taxes condititons in my pricing now?

is it mandatory to have the taxinn procedure in place in the system ?

[Former Member · Accepted solution]

Cant we maintain the tax code without the taxinn settings in the system?

Yes you can maintain a tax code irrespective of the Tax Procedure provided the Tax Procedure has been assigned to the Country.

Now i am configuring the pricing in my IDES server for sd, i dont have any FI settings in place ie taxinn procedure , cant I have the taxes condititons in my pricing now?

is it mandatory to have the taxinn procedure in place in the system ?

Which is the version of SAP that you are working on? If it is 4.7 or higher then you will have TAXINN available. For that you have to make a copy of the 000 client, so that CIN is available.

If you are working in IDES probably in 800 client then you will not have settings for Indian Tax scenario i.e. TAXINJ or TAXINN.

You require TAXINN which is one of the standard Tax procedure that SAP has given for mapping the Excise as well as Sales Tax scenarios.

It is not mandatory that you have to use TAXINN though it is mandatory that you have atleast one Tax Procedure assigned to the Country if you are going to use Tax structure.

Regards,

Karthik

[Former Member · Accepted solution]

karthik thank you once again to you once again. I am using 4.7 E and client is 800.

As you said we need at least one tax procedure. suppose say i have one tax procedure ie taxinn in my system.

Now i have copied RVAA01 procedure to my another pricing procedure and now i have placed sales tax conditions( JLST , JCST) in this pricing procedure.

When I went to create a condition record in VK11 , there in that I got a tax code field to enter.

1.Now my first question is why we need tax code here ? Earlier in Taxinj we need tax code because it is based on calculation procedure. But TAXINN is based on condition procedure. Is it not enough to maintain the conditon record for JLST without tax code?

2.Do I need to maintain tax condition for customer in billing tab ie mwst and tax category for taxinn procedure and also in Material master? If we maintain mwst what is the use of that because all the conditions we are maintaining in pricing procedure like JLST,JCST,JASS,JEXP,JCET etc , then why MWST condition is meant for?

3. If I want to maintain the tax code then do I need to have the TAXINN procedure , if not then where can I maintain this tax code?what is the use of maintaining here the tax code?

4.Please give some clarity on this following sentence given in the sap note regarding to SAP CIN.

"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".

experts thank you in advance for replying to this questions.

[Former Member · Accepted solution]

Hi Ramesh,

1) In IDES i.e. 800 client you will not have any settings for TAXINJ or TAXINN. So you cannot create a scenario with Excise conditions or CST and LST unless it is incorporated in the TAX procedure you are using. For this you will require CIN ( Country Version India) to be activated which is the module that takes care of the Taxation part in Indian scenario. As I had said earlier you need to make a copy of 000 client so as to use the CIN. You will get many links for the customisation of CIN in SDN.

2) Irrespective of the Tax procedure you have to mainitain the Tax code so that you are able to differentiate the tax rates. The Tax codes are for the FI purpose and just by looking at the Tax code one can understand the rate maintained. In case of TAXINN it is just for the indication and does not have the provision to maintain rates.

3) The Tax classification indicators which are maintained in the Customer and Material master against the Tax Category which comes from the Tax Procedure. We keep the Condition Type for the Taxes in the Pricing Procedure with the same name as in the Tax procedure only for the easy identification.

4)In TAXINN there is no formula, but J1ID will be used. The Excise rates reflect in the Excise document only if the Condition type for Total value is maintained.

Regards,

Karthik.