Regarding TAX codes

[Former Member]

Hi SAP experts,

I have created a tax procedure by copying my earlier tax procedure, & done some changes to that, now i want to know whether there is any settings of assigning Tax codes to Tax procedures, or i have to create the tax codes again for new tax procedure in FTXP,

Regards

Pankaj Verma

[Former Member · Accepted solution]

Yes you need to create again new tax codes for your new Tax pricing procedure.

Before creation new tax code ensure that all the assignment with old tax code need to removed before starting new one.And all open documents has to be closed first before starting new procedure.

Consult with your FI team first and then go head.

[Former Member · Accepted solution]

hi Mallinath

If this is the case then i think changing in the previous tax procedure(ZTXINN) is better then creating a new one(YTXINN) & repeating the same process of creating tax codes & assignment which will affect my old documents with previous tax procedure.what do you think about this option Mallinath

[Former Member · Accepted solution]

Hi Pankaj,

Do first all we know why are you creating or changing the existing Tax procedure , it is not recommended to change or create a new Tax procedure, until it is recommended by SAP.

So you need first contact SAP , before changing the existing Tax procedure.

[Former Member · Accepted solution]

Hi Mallinath,

We are implementing reverse charge mechanism, and i was testing this in sandbox first, Its a legal change.

Regards

pankaj verma

[Prasoon · Accepted solution]

Hi,

   If you are trying to implement new tax procedure in running production system, it is not recommended. You may make the required changes in existing tax procedure.

   For service tax reversal mechanism (INDIA), you can make the necessary changes in existing tax procedure as explained in the note: 1736781 - Service tax Legal changes for Abatements and Negative list

   The note explains the procedure to be followed and the new condition types to be created. Please check the mentioned note and follow the procedure.

Regards,

AKPT

[Former Member · Accepted solution]

Thanx AKPT, now i am clear what to do.

[BijayKumarBarik · Accepted solution]

Hi,

With addition to my above reply, If business needs- you can create new tax procedure by copying from standard tax procedure.

If you are going for TAXINN - you can create new tax procedure by copying from TAXINN and rename as ZTAXIN

If you are going for TAXINJ - you can create new tax procedure by copying from TAXINJ and rename as ZTXINJ

Once new new tax procedure created - you can add your all tax condition types in your new tax procedure.

For detail setting for CIN with tax procedure,refer thresd.

CIN MM Configuration | SCN

Regarding service tax, refer thread

Regards,

Biju K

[Prasoon]

Hi,

   If you have created new tax procedure, then you have to assign the tax procedure to the country in OBBG transaction. One country can have only one tax procedure.

   Once its assigned to country, create tax code in FTXP. Maintain the condition records in FV11 for the required condition types for each tax code and test the scenario.

Regards,

AKPT

[BijayKumarBarik]

Hi,

You created a new tax procedure by copying a tax procedure!

Which tax procedure you copied from TAXINN  or TAXINJ?

Where both have thin line difference in between as TAXINN is condition based & TAXINJ is formula based.

If you copied from TAXINN procedure, you can create new tax code in FTXP & maintain tax rate with  condition types ( ie....basic excise duty,edu cess , H. Edu cess,VAT/CST ) with tax code  in t.code: FV11 . Keep maintaining condition record in FV11 t.code for statistical condition types JMX1 ,JMX2 ,JAX1.JAX2,JSX1 AND JAX2 are as 100%. Also check all tax condition types JMX1 ,JMX2 ,JAX1.JAX2,JSX1 AND JAX2 assigned to new tax procedure.

If you copied from  TAXINJ procedure which is formula based, where you can cross check Routine ( selection with logic in line of tax condition type in your new tax procedure where you have formula ) is play vital role in tax calculation and also tax % with taken from J1ID where you can create new tax code in t.code:FTXP play artificial key on tax calculation.

Regards,

Biju K

[Former Member]

Hi,

Tax codes are assigned to co code and Tax calculation procedure is assigned to the Country

maintain condition records for the tax code created in FV11