Tax code creatinon..?

[Former Member]

Hi all

Can nybody explain me , how to create new tax code and what are things i have do in configuration part

FOR eb, Z1 is tax code

Z1- ECess 14%Secess2%Hsecess1% + vat4%

For tax code how we have to configure and create in SAP

Please explain me in Both tax procedures (TAXINN & TAXINJ)

Thanks

sap-mm

[former_member529134 · Accepted solution]

Hello

Create tax code: FTXP

Your country will be assigned to a tax calculation procedure (either TAXINN or TAXINJ) in T.Code OBBG.

Go to T.Code FTXP.

Enter your country code. (IN)

Enter the tax code, its description and tax category as input tax.

When u click enter, you can see all the tax elements(Condition types) in tax calculation procedure there.

For TAXINJ

Enter the tax percentage as 14 for condition type for ED

Then 2% for Secess and 1 % Hsecess and 4% for VAT condition type and save.

For TAXINN

In the case of TAXINN we will not maintain any % in the tax code.

Just save the tax code without entering any value or % for the condition types.

Then go to FV11 and enter the condition type for ED (14%)

Then clikc enter.

Then select the key combination as per your requirement as plant/material vendor or tax classification as per your clients requirement.

Then maintain the required % for that tax element ie 14% for the correct combination and save.

Similarly give the condition types for Scess,Hcess and VAT and maintain the tax percentage for the combination as per your clients requirement and save.

So when you enter the tax code in the PO, if TAXINJ, the calculation will be based on the % mentioned in the tax code and In the case of TAXINN, the condition record values with the correct combination will be called and the tax calculation will be carried out.

Hope this helps

Regadrs

[former_member192897]

After Inputting the Tax Code Z1 and Tax Type Input / Output in the Initial Screen of FTXP it will take you Next Screen in Which you Have to Maintain Tax Percentages Respective Condition types.

http://sapdocs.info/2008/09/16/creating-tax-codes/

[former_member192897]

Go to FTXP Trxn code and Input Tax Code (Start with Z) and Specify Country IN and Enter then in Next Step Enter TAX Code Description and Select Tax Type (Whether Input or Output) and in Next Screen Maintain the Tax Percentage % against the Condition type and Save.

Go to FTXP Trxn code and Give the Follwing Input :

Tax Code

Country

Jurisdiction code (If available)

Tax code Description

Tax type ( Input / Output)

And Maintain Tax % against Condition type and after Completing the Procedure Assign tax Determination in OB40 for the Relevant Account Key.

[kunal_ingale]

hi

u can create the tax code in FTXP

for taxinj process u have maintain the values in tax code only but for taxinn process u have to maintain condition records

Go to transaction code FTXP and select the country for which you need to create a tax code. This country is automatically linked to the Tax Procedure which has been set up in the menu path [IMG - Financial accounting - Financial accounting global settings - tax on sales/purchases - basic settings - Assign country to calculation procedure.

Enter in the field tax code. This must be a 2-digit alphanumeric code i.e. A5, 55, BB, etc.. Before SAP 4.5 (I believe) you could use other special characters such as @, ? etc... But this is no longer applicable. See OSS note 212806.SAP will ask you to complete other additional fields such as:

description of the tax code: please give a clear description

define the tax type: define whether the tax code is relevant for input or output tax

Indicator which determines that an error message should be issued if the tax amount is not correct. It it recommended to flag this.

Eu code: One of the most forgotten parameter. If you do not set this parameter at "1" then all transactions with this code will be not picked up in the ESL listing of that specific country. This code "1" represents all the Sales from one EU country to another EU country.

The target tax code fields are used in case of deferred taxes. This is applicable for example in France. The VAT needs to be paid for example not when the invoice is issued but when the customer pays the VAT. There are here again special programs available in SAP for deferred taxes.

Reporting country: this field needs to be completed when you are using the plants abroad functionality. This means that when you as a German company have a Belgian VAT number and you have sales in Belgium (+ you need to submit a VAT return in Belgium) , then of course these invoices need to be booked in SAP with a Belgian tax code.

Further in the menu you can also allocate the amount where this specific tax code is used to a certain tax account. The tax type fields such as Base Amount, Input tax, Output Tax ... can be determined via the calculation procedures. Calculation procedures are defined in the IMG at [Financial accounting - Financial accounting global settings - tax on sales/purchases - basic settings - Assign country to calculation procedure]. Here you will need to define also the calculation levels. For example the Output tax is level 125 and the output tax will be calculated on the basis of the base amount. Therefore you put for the output tax in the field "from level" 100. The level of Base amount is 100. You do the same for the others.

Account Keys.

NVV: The non deductible VAT is automatically added to the expenses account

NAV: Indicate for this key a separate account for the non deductible VAT

ESA: Output tax in case of Acquisition of EU goods

ESE: Input tax in case Acquisition of EU goodsLast but not least you also need to complete the tax rate field.

Tax Percentage & GL Account assignment

Tax percentage can be maintained in two ways & that depends upon the Tax procedure that has been followed i.e. if tax procedure is formula based then percentage can be maintained in FTXP only, where as if the procedure is condition based then percentage has to be maintained under the identified condition type.

Once done GL accounts has to be assigned under OB40 for automatic posting of tax amounts.

http://www.4shared.com/file/30654921/44e1737/00017-FI-GL-Define_Tax_Codes_for_Sales_and_Purchases-SA...

hope it clears

regards

kunal

[Former Member]

hi

thanks for ur response ..

Can u explain me , how to create new tax code and what are things i have do in configuration part

FOR eb, Z1 is tax code

Z1- ECess 14%Secess2%Hsecess1% + vat4%

In FTXP , were i have to enter % like 14,2,1..etc

For tax code how we have to configure and create in SAP

Thanks

sap-mm

[former_member192897]

http://help.sap.com/bp_bblibrary/600/Documentation/BL_Quick_Guide_EN_DE.doc

http://help.sap.com/bp_blv1600/BL_Finland/documentation/BL_Quick_Guide_EN_FI.doc