Formula based excise determination

[Former Member]

Hi everyone.

will u pls explain step by step method,to define formula based excise determination procedure in factory sale pricing procedure.

Regards

prabudh

[Former Member · Accepted solution]

Hi,

Attaching the details (this is of pre-VAT scenario) for your ready reference..

In addition to the below details.. pls refer SAP Note # 821826 (TAXINJ- Tax configuration for VAT solution)

<b>PRICING PROCEDURE FOR FACTORY SALES :</b>

Standard settings

Pricing

Factory Sales Pricing Procedure - JFACT

This is a template of pricing procedure for Sales from Factory. JMAN is

a manual condition for Excise. When manual override is required for the calculated excise value it could be given for the condition JMAN. The condition value formula 355 checks and copies this on to the Basic

Excise duty value. UTXJ is the condition in JFACT which triggers the

calculated call of tax procedure TAXINJ. Condition records need to be

maintained for UTXJ with the appropriate tax code. Access sequence JIND has been assigned to the condition UTXJ. Base value for calculation of excise derived from the condition base value formula 351. This ensures that if an assessable value is maintained for the material through Excise rate maintenance (J1ID) then that will be used as basis for excise calculation. In the absence of an assessable value the selling price will be used for excise calculation.

JMOD is a FI Tax condition which gets the Basic Excise duty from

calculation formula 355. JEX2 is a copy of JMOD and is a Sales pricing

condition. The value of JEX2 gets posted for Excise account key. This

ensures that the cost accounting of excise value paid is done correctly.

In cases where commercial invoice is created after utilization the

condition value formula 353 ensures that the actual MODVAT utilized is

accounted as excise. Similarly JAED is a FI Tax condition which gets the Additional Excise duty from calculation formula 352. JEXA is a copy of JAED and is a Sales pricing condition. The accounting is done for the

value of JEXA. JSED is a FI Tax condition which gets the Special Excise

duty from calculation formula 352. JEXS is a copy of JSED and is a Sales pricing condition. The accounting is done for the value of JEXS. JCES is a FI Tax condition which gets the CESS from calculation formula 352.JCED is a copy of JCES and is a Sales pricing condition. The accounting is done for the value of JCED.

Sales Tax - Identification of Central or Local Sales tax.

Both CST and LST rates are maintained in one tax code in the same

jurisdiction. (Refer Tax code V8 ). The rates are maintained at the tax

code level. But then requirement formulae are attached to the LST and

CST tax conditions in the tax procedure. The requirement formula 351

decides whether CST is applicable based on the Region of the ship-to

party and the region of the delivering plant being different. The

requirement formula 352 decides whether LST is applicable based on

Region of the ship-to party and the region of the delivering plant being

same.

You can enhance the requirement formula to add your own logic for

deciding whether the tax applicable is CST or LST. All the fields

specified in the pricing field catalog are available in the formula.

Important: If you are not using requirement formula to decide on the

sales tax remove it from the Tax procedure as well as pricing procedure.

Sales tax rates needs to be maintained separately for each jurisdiction

Important: Manual override of applicability of LST or CST is not

possible if elimination is done using requirement formulae.

LST and CST rates are maintained in different tax codes at different

jurisdiction. ( Refer tax code V5 and V6 ) Default

Export Sales Pricing Procedure - JEXPOR

There is no Excise condition in the Exports pricing. But excise can be

calculated at MODVAT utilization.

Stock Transfer Pricing Procedure - JSTKTR

Stock transfer pricing has only excise conditions as it is used only for

the calculation of excise value.

Depot Pricing Procedure - JDEPOT

Depot pricing procedure is exactly similar to the Factory pricing

procedure with the exception that the condition value formula attached

to the excise condition is 356. This ensures that the excise value from

the referred excise invoices for the delivery is picked up and used by

the commercial invoice.

Output Determination:

In Standard Customizing for output determination following settings have

to be maintained.

Output determination procedure has to be maintained against the Billing

type

Create an output type and maintain the Driver program, Form routine and

the layout.

Driver program is the name of the program that the system calls up to

process the output

Form routine is the name of routine to be called up in the processing

program

Layout is the name of a Sapscript layout set that can be designed as per

user requirement

To enable printing of particular document for partner function, maintain

the desired partner function against the output type.

Printer communication details can be maintained by creating condition

records where partner functions can be assigned to output types

Copy Control from delivery to Billing

When excise and commercial invoice are the same

The copy control path is OR > LF > F2

When excise and commercial invoice are different, i.e. Multiple excise

invoices for a single commercial invoice

The copy control path is OR JF JEX F2

To Maintain copy control for billing documents

Path: IMG Sales and Distribution Billing Billing documents Maintain

copying control for billing documents

Maintain the following entries for Billing type F2 and Delivery type

JF at item level

Item Category TAN

Copying requirements 310

Data VBRK/VBRP 351

Maintain the following entries for Billing type JEX and delivery type

JF at item level

Item Category TAN

Copying requirements 311

Data VBRK/VBRP 351

To check the formula and change source if required

To check / change formula 310 & 311

VOFM > Copying requirements > Billing document > Choose Formula

(Source Text)

To check / change formula 351

VOFM > Data transfer > Billing document > Choose Formula (Source

Text)

Formula 310:

The routine is to be attached to the copying requirement in LF to F2

copy control for TAN item category. This is to be used when the proforma

invoice is used as reference for the excise invoice. ie. the procedure

in sales is

SO -> LF -> JEX -> excise posting by J1II -> F2

The added functionality of this routine ensures that the excise posting

takes place before the billing document is created. In case of depot

sale it ensures that the excise invoice selection has taken place before

the billing document is created.

Formula 311:

The additional check done in this routine is that post goods issue is

done for the delivery document and it also prevents multiple creation of

the billing/pro forma document to which this formula is attached

multiple times for the same delivery item.

Data transfer - Billing documents:

This routine splits the items of a delivery into multiple billing/

proforma documents. The split is based on the following fields :

Distribution channel, division, delivery, chapter id and also the

maximum number of items in a document is picked up from the

customization and imposed on the document being created

Reward if helps you

Thanks and Regards

[Former Member]

Upto 4.6C & partially 4.7 version of SAP, TAXINJ was used. TAXINJ is formula based calculation, in which we maintain the tax rate in Tax Code itself. The implication is that if say we are having product range such that say Excise rate differes for separate chapter ID, VAT, CST & permutation & combination of these, we require that many Tax Codes. For example:

Tax Code: A1

Taxes: 16% Excise Duty + 2% Education Cess + 12% VAT

Tax Code: A2

Taxes: 16% Excise Duty + 2% Education Cess + 8% VAT

Tax Code: A3

Taxes: 12% Excise Duty + 2% Education Cess + 12% VAT

Tax Code: A3

Taxes: 12% Excise Duty + 2% Education Cess + 8% VAT

Regards,

Rajesh Banka