Hello
The SAP system calculates tax based on the tax calculation procedure assigned to your country in OBBG.
The tax calculation procedure is similar to the pricing procedure in materials management.
As you have different pricing elements like gross price,discounts,freight charges, etc in pricing procedure, you will have different tax elements like Excise duty,Special excise duty,Cess,Edu cess,VAT,CST, etc in tax calculation procedure.
At the time of PO creation, the tax base amount is communicated to the tax calculation procedure from the pricing procedure.
And the tax values are calculated based on that and how you have configured your tax calculation procedure.
In CIN, we have two tax calculation procedures
TAXINJ which can be formula based or condition based and TAXINN which is condition based.
In TAXINN, the tax percentages are picked from the condition records maintained.
But in TAXINJ, it can be either from the condition records or the tax % given in the tax codes in FTXP. It depends on how you configure your system.
Hope this helps
Regards
Gregory Mathews
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.