tax procedure mm
could someone please provide me steps for tax procedures in MM
What are the SAP Tax Procedures to configure?
OBBG - Assign Country to calculation procedure.
OBCO - Specify structure for Tax Jurisdiction code. For country like U.S.A.
LG -> character length of first level of hierarchy within your tax jurisdiction code structure.
LG -> Second level of hierarchy as above.
LG -> Third level of hierarchy as above.
LG -> Fourth level of hierarchy as above.
TX -> Tick if you want the system to determine taxes on a line by line basis instead of determining them on a cumulative basis
per tax jurisdiction code.
OBCP - Define Tax Jurisdiction code
Dil -> Tick if you do not want tax amounts included in the based amount used for calculating cash discounts.
Txl -> Tick if you want the cash discount amount deducted from the base amount that is used to calculate taxes.
FTXP - Define Taxes on Sales/Purchases Code.
OBCL - Allow Tax codes for non-taxable transactions.
There is two type of pricing procedures,one is our pure MM pricing procedure to calculate Basic price,Discount,freight etc
Second one is taxprocedure this is FI Persons they will configure taxprocedure.In Indian scenarios there is TAX INN and TAXINJ.In defination itself its saying TAXINN is for Condition based tax procedure and TAXINJ is for Formula based tax procedure.
Basically there are two types of taxes that is Excise and sales tax.
In Excise there are Basic excise duty,E cess on Basis Excise duty and finally Secondary and highere education cess on Excise duty.apart from Additional excise duty and Special excise duty its depending upon Material.
In sales tax also VAT,CST are there.
For Calculating these taxes first you have to 1)create atxprocedure in Financial accounting-Financial accounting global settings-Basic settings----.
2)Assign taxprocedures to the country.
4)Specify Nondeductable taxes to the country.
5)assign G/L accounts for the account key.
Tha above said one is BAsic settings(essential part)
Major part is CIN settings.
2)Company code setting
6)Excise transactions setting
Create Material Master and Vendor master.maintain master data for this in J1ID(Chapter ID,Chapter iD and Material Combination,Cenvat determination and Vendor Excise details.)
Maintain Condition records in FV11 through different Condition types.
Now u can create Purchase order and in Invoice tab and taxes we can see the tax details.
Whatever i explained above its for TAXINN>