service tax

[Former Member]

Hi All,

Can anybody please tell me the steps in service po with service tax code cycle ? How the system differentiate the service tax code with that of other tax codes?

Regards,

[Former Member · Accepted solution]

Hi

The service PO is similar to that of any other PO in terms of taxing.

In service tax we will have

Service tax - 12 %

Eduction cess - 2 %

Surcharge - 1%

So for service tax code we will be maintaining three rates in the Tax code.

Thanks & Regards

Kishore

[Former Member]

for service PO the needed inputs are:

item category--L

account assignment category---K

short text

material group

plant

at item level:

services (service no. or service text,quantity,unit,price)

g/l account

cost centre

tax code

at header:

normal entry as in other types of PO

In a service type tax code (mostly 12.36%) is maintained against tax condition type JSTR(12%),JEC3(2%),JST1(15)

regards,

indranil

[pankaj_singh9]

Hi,

Follow the below process for Service Cycle;

1. AC01 - Create Service master in AC01 and assign the Valuation Class for the Service Masters and do Account Determination in OBYC for A/c Key GBB and Valuation Modifier VBR (to this Assign the Service Expense A/c) and for A/c Key WRX, assign GR/IR Clearing A/c

2. ME21N - In PO (ME21N), use Item category as "D" (Services) along with Account Assignment Category "K" (Cost Center) and In "Services" tab, specify the Service Master and pricing details

3. ML81N - Create Service Entry Sheet w.r.t. Service PO

Service Expense A/c - Dr
GR/IR Clearing A/c - Cr

4. MIRO - LIV for Service Entry Sheet or Service PO

Service Vendor A/c - Cr
GR/IR Clearing A/c - Dr
Service Tax A/c - Dr
Ed Cess on Service tax - Dr
Sec Ed Cess on Service tax - Dr

Note: - Service tax Accounts will come in picture if you have use Service Tax Code in Service PO

Refer following links;

[External Service Management|http://www.sap123.com/showthread.php?t=52]

And Go to Transaction OLMSRV to configure External Service Management.

______________________________________________________________________________________________________________________________

There are SAP standard Service Tax condition as "JSRT" or "JSER" and then copy these conditions as "JEC3" (A/P ECS for ST) and "JSEC" (A/P SECess for ST). Create a condition type for this in OBQ1. Keep Access Sequence as "MWST" for these condition types.

Also keep following controls;

Cond. class D Taxes

Calculat.type A Percentage

Cond.category D Tax

And then assign it in tax Procedure in OBQ3. Also assign appropriate A/c Key to this.

You can create A/c Key in OBCN. For e.g. ESE Input acquisitn tax (take copy of this and create 3 different keys for Service Tax, ECS on ST and SECess on ST)

Then do A/c determination in OB40 for the A/c Keys

And then create Tax Code in FTXP for Service Tax.

Then use this in PO.

At the time of LIV, it will post FI entry as;

Vendor A/c - Cr

GR/IR Clearing - Dr

Service Tax A/c - Dr

Ed Cess on ST A/c - Dr

Sec. Ed Cess on ST A/c - Dr

And then utilize the Service Tax Values by specifying these GL Accounts in selection screen of J2IUN

[former_member581212]

hi,

Check the thread:

Hope it helps..

Regards

Priyanka.P