CIN-MM Tax codes and Condition types for Business scenario

[Former Member]

Dear Experts,

Please mention Tax code and Condition types to be used for following Business process in Purchasing Excisable Materials.

1. Asset Procurement - Excisable Materials

2. Capital Procurement - Excisable Materials

3. Domestic Procurement - Excisable Materials

4. Import Procurement - Excisable Materials

5. Subcontracting - With and Without Excise

6. STO  (Plant to Plant, Plant to Depot, Depot to Plant, Depot to Depot) - Excisable Materials

Thanks.

[binoy_vargis1]

Hi Satheesh,

You need to create your own Taxcodes as per your Tax structure. Let us know your Tax procedure used and whether CIN configured. Do you have Excise groups.

Regards

Binoy

[Former Member]

Hi Binoy,

Thanks for your reply. 

I would like to know the standard condition types that are used for the above business process in SAP MM for both TAXINJ and TAXINN procedure.

[former_member192897]

Tax code needs to be created based on the tax applicable on certain material or service. It is not based on procurement type wise. It also depends from whom you procure the goods and also based on the Intra state or Inter state procurement.

Search the forum on Condition types for TAXINN and TAXINJ. You will get lots of threads on TAXINN & TAXINJ both.

[Former Member]

Thanks for explaining about Tax code. Could anyone explain about following two things.

1) After creation of tax code  - FTXP, Tax rate, FV11.  How the tax code should be calculated for excisable materials?. Please explain with an example for all above mentioned business process that may be followed in your client scenario.

2) What are the standard condition types to be included in MM pricing procedure - excisable materials for the same above mentioned business scenario.

For example: Following are the conditions types used in Import procurement. JCDB, JCV1, JECV, J1CV , JEDB, JSDB, JADC.

Thanks.

[former_member192897]

For all of your queries, please search the forum. Below link will help you to some extent in understanding CIN processes.

[Former Member]

Hi Ashok,

Thanks for your reply.

For Import procurement with CIN, Seven different condition types are to be included in MM Pricing Procedure (Customs CVD and Excise condition types).

Similarly, For Capital / Asset Procurement with CIN, what are the condition types to be included in MM Pricing Procedure??..  .

[former_member192897]

For only Import procurement, you need to add these 7 condition types in MM Pricing procedure irrespective of the procurement whether its Capital, Asset, Raw Material etc.

For Procurement other than Foreign / Import, you need to maintain condition record in FV11 transaction for Excise, VAT, CST as per the Tax applicability and make use of the tax code in the PO.

[Former Member]

Hi Ashok,

Thanks very much for the above explanation.

You mentioned "maintain condition record in FV11 transaction for Excise, VAT, CST as per the Tax applicability and make use of the tax code in the PO"

From the above statement, what i understand is, once the FI consultant created and maintained Tax code and Tax rate, the created Tax code should be included in PO to fetch the Excise rate.

So in this case,

1) Is Tax code alone is enough to fetch the Excise rate??   or

2) Is it necessary to add any condition type in MM Pricing Procedure that would fetch the Excise rate??

We are using TAXINJ procedure.

[former_member192897]

Condition records must be maintained as per the tax applicability. Thats enough. No need to include any condition type in Pricing  procedure except Manual Excise condition JEXC. JEXC is only used in case of Manual Excise scenario. Search the forum for more info on JEXC.

[Former Member]

Hi Ashok,

Once again appreciate your help.

Let me rephrase in points what i understand from the above discussion.

1) For Domestic Excisable Procurement, whether it is Capital / Asset / Raw Materials, only Tax code is     included in PO. And it is not necessary to include any condition type in MM Pricing procedure for Capital / Asset / Raw Materials procurement except if the client is using any Manual Excise condition for Manual Excise scenario.

Considered FI consultant have created Tax code, Tax rate and condition record in FTXP, FV11.

2) For Import Excisable Procurement, whether it is Capital / Asset / Raw Materials, seven condition types must be included in MM Pricing procedure. And Tax code is Zero (V0).

Have i got it right??..  or is there anything missing??..

[former_member192897]

1) You understanding is absolutely correct.

2) It is not like that for each and every Import PO you need to use 7 Condition types. It depends on the applicability of duties. Accordingly, you need to maintain condition types in Import po.

[Former Member]

Hi Ashok,

Are the above steps applies only for TAXINJ ??..

Could you explain me, what are the condition types to be added in MM Pricing procedure for Import Excisable and Domestic Excisable Materials in TAXINN procedure .

[former_member192897]

All above steps are for TAXINN only. You must maintain the condition types in MM Pricing procedure only for Import procurement irrespective of the Tax procedure. For Excise, Excise rate must be maintained in J1ID under tax rate and for VAT and CST you need to maintain in FTXP for TAXINJ procedure

[Former Member]

Dear experts,  any replies for my above query?..

[Former Member]

Hi Ashok,

I enlisted some points regarding TAXINN and TAXINJ procedure with MM point of view as per my understanding.

Both tax procedures contain condition types that cover all of the excise duties

TAXINN:

1. Condition Based Tax procedure.

2. Only supports condition based excise determination.

3. FTXP - Tax Code created and Tax Rate maintained (VAT, CST)

4. FV11 - Condition Record created for condition type where Tax Code have to be maintained

From MM side:

1. For Import Excisable Procurement, Maintain condition types in MM Pricing procedure and Tax code is Zero (v0) in PO.

2. For Domestic Excisable Procurement like Capital / Asset / Raw Materials, It is not necessary to include any condition type in MM Pricing procedure. Tax code have to be maintained in PO to fetch excise rate.

Excise rate in J1ID and Excise Defaults, Assessable value have to be maintained.

TAXINJ:

1. Formula Based Tax procedure.

2. Supports both condition based excise determination and formula based excise determination.

3. FTXP - Tax Code created and Tax Rate maintained (VAT, CST)

From MM side:

1. For Import Excisable Procurement, Maintain condition types in MM Pricing procedure and Tax code is Zero (v0) in PO

2. For Domestic Excisable Procurement like Capital / Asset / Raw Materials, It is not necessary to include any condition type in MM Pricing procedure. Tax code have to be maintained in PO to fetch excise rate.

Excise rate in J1ID and Excise Defaults, Assessable value have to be maintained.

Both procedure's steps looks to be same in MM side (Pricing procedure). Is it right??..  

If i am wrong, what is the difference in MM side for TAXINJ and TAXINN in Pricing procedure. 

[former_member192897]

Your understanding is correct.

[Lakshmipathi]

It seems, you have not made any efforts to search SCN or Google to find out answers to your multiple queries.  Please put some efforts to find out the informations required by you, on your own which is a pre-requisite as per SCN RoE and still if you face any issue, post here with your findings so that members will assist.

G. Lakshmipathi