Difference Between MWSTand UTXJ

[Former Member]

Plz let me known the difference between MWST and UTXJ, and in ECC 6.0 JTX1, 2,3,4 as a Tax jurisdction code, in case of TAXINN as the Tax Procedure. We are doing Implementation of an Indian Co. at India (MP).

Which one I am suppose to use in the screen Define tax Determination Rules under SPRO- Sales & Distribution.

Plz Reply.

[Former Member]

Hi Amit,

MWST - is a condition type which will be used for Out put tax.

UTXJ - is a condition type which will be a Basic Price and plays a vitol role in CIN. Especially in TAXINJ.

as you are aware that

Basically Cin is divided in to two types:

1. TAXINJ - Is a Routine Based that is used in the condition types. it will work on the logic what ever is there in the Routine.

2. TAXINN: - Is a condition Record based. Means we have to create condition records for each and every condition type that you are going to use in the Pricing Procedure.

Since Version 4.7 this TAXINN came into picture and start using this.

And Also go through the below.Hope this will help you

Maintain Excise Duty Indicators

Use

In this IMG activity; you maintain the excise duty indicators.

IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings > Determination of Excise Duty >

Select Tax Calculation Procedure

Use

In this IMG activity, you specify which tax procedure you want to use for determining excise duties and sales taxes on input materials in India.

• If you use condition-based excise determination, use a copy of the tax procedure TAXINN.

• If you use formula-based excise determination, use a copy of the tax procedure TAXINJ.

This tax procedure also supports condition-based excise determination, so that you can work with both concurrently.

We strongly recommend that new customers use condition-based excise determination. Note that once you have started using a tax procedure, you cannot switch to another one, otherwise you will not be able to display old documents.

Maintain Excise Defaults

Use

In this IMG activity, you define which tax procedure and pricing condition types are used in calculating excise taxes using formula-based excise determination.

Activities

If you use condition-based excise determination, fill out the CVD cond. field and leave all the others blank.

If you use formula-based excise determination, fill out all of the fields as follows:

• Enter the tax procedure and the pricing conditions that are relevant for excise tax processing.

• Specify the purchasing and sales conditions types used for basic excise duty, additional excise duty, special excise duty, and cess.

• Specify the conditions in the sales order that are used for excise rates.

• Specify the countervailing duty condition type used for import purchase orders.

See also

SAP Library -> Logistics -> Country Versions -> Asia-Pacific -> India -> Materials Management (MM) -> Condition-Based Excise Determination and -> Formula-Based Excise Determination.

IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings > Determination of Excise Duty >

Condition-Based Excise Determination

Use

When you enter a purchasing document, for example, a purchase order, the R/3 System automatically calculates the applicable excise duties using the condition technique.

Features

The standard system comes with two tax calculation procedures. TAXINN is only supports condition-based excise determination, whereas TAXINJ supports condition-based excise determination and formula-based excise determination. Both tax procedures contain condition types that cover all of the excise duties and sales taxes applicable.

Since the exact rates of excise duty can vary on a large number of factors, such as which vendor you purchase a material from, or which chapter ID the vendor stocks the material under, you create condition records for every sort of excise duty.

When you come to enter a purchasing document, the system applies the excise duty at the rates you have entered in the condition records.

Activities

Customizing

Make for Logistics – General, by India the settings in Customizing Basic Excise Duties Usingchoosing Taxes on Goods Movements Account Settings Determination.Condition Technique and …

These activities include one activity where you define a tax code for condition-based excise determination.

Master Data

Create condition records for all excise duties that apply, and enter the tax code for condition-based excise determination in each.

Day-to-Day Activities

When you enter a purchase order or other purchasing document, enter the tax code for condition-based excise determination in each line item. The system then calculates the excise duties using the condition records you have created.

When the ordered materials arrive, you post the goods receipt and the excise invoice. The system posts the excise duty to the appropriate accounts for deductible input taxes when you enter the excise invoice.

Creating Condition Records for Excise Duty

1. In the command field, enter FV11 and choose .

2. Enter the condition type that you want to create a condition record for and choose .

The Key Combination dialog box appears.

3. Select the combination of objects that you want to create the condition record for.

On the dialog box, Control Code means "chapter ID."

So, for example, to create a condition record for a tax that applies to a combination of country, plant, and chapter ID, select Country/Plant/Control Code.

4. Choose.

5. Enter data as required.

In the Tax Code field, enter the dummy tax code that you have defined.

6. Save the condition record.

Formula-Based Excise Determination

Use

When you execute a business transaction involving materials that are subject to excise duty, the system automatically calculates the duty for you.

Prerequisites

In order for the system to be able to determine which rate of excise duty to apply, you must have maintained all the data on the Excise Rate access from the SAP EasyMaintenance screen, which you can Master Data Access screen by choosing Indirect Taxes Excise Rate Maintenance.

You maintain the following types of data:

• Plant master data

You assign each of your plants an excise duty indicator. You can use the same indicator for all the plants with the same excise status from a legal point of view, such as all those that are in an exempt zone.

See also the information about manufacturers that are only entitled to deduct a certain portion of the duty (see Partial CENVAT Credit).

• Vendor master data

For each of your vendors with the same excise status from a legal perspective, you define an excise duty indicator. You must also specify the vendor type – for example, whether the vendor is a manufacturer, a depot, or a first-stage dealer. You must also stipulate if the vendor qualifies as a small-scale industry.

For each permutation of plant indicator and vendor indicator, you then create a final excise duty indicator.

• Customer master data

similarly, you assign the same excise duty indicator to each of your customers that share the same legal excise status.

Again, for each permutation of plant indicator and customer indicator, you then create a final excise duty indicator.

• Material master data

each material is assigned a chapter ID.

• Excise tax rate

For every chapter ID and final excise duty indicator, you maintain the rate of excise duty.

If your business only qualifies for partial CENVAT credit, you must customize your system accordingly.

Activities

Let us consider an example to illustrate how the system determines which rate of excise duty to apply to a material. Assume you are posting a sale of ball bearings to a customer. The system automatically determines the rate of excise duty as follows:

1. Looks up the customer master data to see what status you have assigned the customer.

Let's assume you've assigned the customer status 3.

2. Looks up the plant master data to see what status you have assigned the plant.

Similarly, your plant has status 2.

3. The system looks up the table under Excise Indicator for Plant and Customer to see what the final excise duty indictor is for customer status 3 and plant status 2: It is 7.

4. The system determines the chapter ID of the ball bearing for the plant.

Let’s assume the chapter ID at plant for the ball bearings is 1000.01.

5. Finally, the system looks up the table under Excise Tax Rate to see what rate of duty applies to chapter ID 1000.01 under status 7.

Define Tax Code for Purchasing Documents

Use: In this IMG activity, you define a tax code for the purposes of calculating excise duty when you enter purchasing documents.

Only carry out this activity if you use condition-based excise determination.

Activities: Create a new tax code, and set the tax code type to V (input tax). Do not make any other settings for it.

Assign Tax Code to Company Codes

Use

In this IMG activity, assign the tax code for purchasing documents to the company codes where it will be used.

Only carry out this activity if you use condition-based excise determination.

Classify Condition Types

Use

In this IMG activity, you specify which condition types you use for which sort of tax. Note that this only applies to condition types that you use with the new excise determination method.

The system uses this information when you create a document from another one. For example, when you enter an incoming excise invoice from a purchase order, or when you create an outgoing excise invoice from a sales order, the system determines the various excise duties in the excise invoice using the information that you have entered here.

In addition, when you create a purchasing document, the system only uses the condition types that you enter here.

• For taxes on purchases, use the condition types contained in the tax procedure.

• For taxes on sales, use the condition types contained in the pricing procedures.

Standard settings

The standard system comes with sample settings for the tax calculation procedures and pricing procedures.

Use these settings as a basis for your own.

IMG > Logistics - General > Tax on Goods Movement > India > Account Determination

Define G/L Accounts for Taxes

Use

In this IMG activity, you specify which G/L accounts you will use to record which taxes.

Requirements

you have set up G/L accounts for each of the processing keys listed below.

Activities

Assign an account to each of the following posting keys. The accounts for VS1, VS2, and VS3 are used as clearing accounts during excise invoice verification.

• VS1 (basic excise duty)

• VS2 (additional excise duty)

• VS3 (special excise duty)

• VS5 (sales tax setoff)

• MWS (central sales tax)

• MW3 (local sales tax)

• ESA (service tax)

• ESE (service tax expense)

Specify Excise Accounts per Excise Transaction

Use

In this IMG activity, you specify which excise accounts (for excise duty and CENVAT) are to be posted to for the various transaction types. Enter all the accounts that are affected by each transaction type.

If you use sub transaction types, enter the accounts for each sub transaction type as well.

Activities

Transaction type UTLZ is used for determining accounts only while posting excise JVs and also if the payment of excise duty has to be done fortnightly.

The fortnightly CENVAT payment utility picks up the credit side accounts from the transaction types of GRPO, EWPO, and TR6C for determining the CENVAT and PLA accounts. There is no separate transaction type for fortnightly payment.

Example

Excise TT DC ind Account name

GRPO CR CENVAT clearing account

GRPO CR RG 23 BED account

GRPO DR CENVAT on hld account

Specify G/L Accounts per Excise Transaction

Use

In this IMG activity, you assign the excise and CENVAT accounts to G/L accounts.

When you come to execute the various transactions, the system determines which G/L accounts to post to by looking at the:

• Excise group

• Company code

• Chart of accounts

Furthermore, if you want separate account determination settings within an excise group, you can also use sub transaction types.

Requirements

You have already:

• Defined the G/L accounts

• Defined the excise groups

• Maintained the transaction accounts

Activities

For each excise group, assign the excise and CENVAT accounts to G/L accounts. For most businesses, one set of accounts will suffice for all transactions.

Note

You need not remit the CENVAT to the excise department immediately, so maintain the credit account for transaction type DLFC as an excise duty interim account. This will be set off when you remit the duty.

Config setting needed to be done in order to get the Excise Details Screen in Material Master.

Even though this functionality is available in enterprise version, a small config step has to be made in Screen Sequences for Material Master.

Following document helps you to do this configuration.

 1. Go to IMG Define Structure of Logistics General Material Master Configuring the Material master Screen Sequence.Data Screen for each

2. Select your screen sequence. Usually it would be 21. Select the same and click on Data Screen in the left frame.

3. Once the data screens are exhibited, select data screen no. 15, ie. SSq. 21and Scrn 15, which is “Foreign Trade: Import Data”. Select the same and click on Subscreens in the left frame.

4. Go to the last sub screen i.e. 21-15-6 - SAPLMGD1- 0001 and select the same. Click on tab view subscreen and ensure that the subscreen is blank.

5. Now in the last sub screen i.e. no.6 you delete SAPLMGD1 – 0001 and instead add SAPLJ1I_MATERIAL_MASTER and in the screen no. 2205.

6. Save the setting.

7. Create a Material Master and check whether in Screen Foreign Trade – Import, Excise related subscreen appears.

Please Reward If Really Helpful,

Thanks and Regards,

Sateesh.Kandula

[Former Member]

Hi,

MWST is an output tax. UTXJ is a copy of a price ( basic price - discounts), whcih whcih will taken as the base value for ED.

Tax procedure is TAXINN in ECC 6.0

JTX1,2 etc are the jury codes whcih will be used in Customer master and material master for defiing the tax classifications.