Problem with Taxinn procedure

[Former Member]

Dear all,

I am working in Taxinn procedure. I have 2 condition types Jcst - Central sales tax & Jlst - local sales tax. I am using these as tax classification in customer as well as material. All materials are applicable for tax so the indicator for Jcst & Jlst is 1-taxable.

Now the customer is applicable for only Vat so for tax indicator for Jcst it is 0-tax exempt & for Jlst it is 1-taxable.

In V/06 for conition types Jcst & Jlst the condition class is "D-Taxes"

When i try to maintain the condition record for the condition type Jlst the system asks for a tax code. My question here is SAP has recommended that in Taxinn procedure there won't be any use of the tax codes. All values are fetched from VK11. If at all i select any dummy tax code say A0 then while billing the system gives me posting error.

Like in Taxinj the system posts the sales tax value directly from the FI side. How is the posting done in case of Taxinn?

Please give me solution for this as i am not able to figure out the problem. If I can get the flow of the process then it will be helpful to understand.

With best regards,

Allabaqsh.

[reazuddin_md · Accepted solution]

Hi,

As per custom laws in country, we have different types of taxes applicable for different sales transactions.

these tax laws are vary in country eg:IN from state to state.

some states are following VAT & some of them or not.

To apply these taxes to the relevant states which applicable, we maintain tax condition types as grouped in a procedure( TAXINN) .Assign this procedure to the Country:IN.

Now, we maintain the tax codes ( in FTXP) under Country.

tax condition types which is assigned in TAXINN procedure has to maintain in SD pricing procedure also.

based on the industry/material / subsidies / tax rules - applicable taxes are vary.

By using UTXJ we determine taxable amount ( how much amount is applicable for tax?)-In UTXJ condition record we maintain 100%. means amount in UTXJ is 100% taxable.

with ref to Country, TAXINN procedure will trigger.

IN UTXJ tax code also maintain based on key combination ( eg:region wise)

now in FTXP-

Country & Tax code,

which & how much percentage of tax is applicable will be calclated on 100% amount of UTXJ & copies in order conditions.

last copule of days back,some replise posted for the same issue.plz check - hope you may get the clue.

[Former Member · Accepted solution]

Dear Riyaj,

The process explained by you to use tax code in the Condition records,

1. Whether we can use the tax code in the TAXINN procedure ?

2. If we can use it then what would be the difference between TAXINJ and TAXINN.

I have not worked in CIN other than service Tax

Please do explain?

regards,

Amlan

[reazuddin_md · Accepted solution]

Hi Amlan,

You dont user tax codes in TAXINN directly- but while creating tax codes under county TAXINN will be triggered ( from the assignment country to caluclation procedure )

here u enter the tax percentage against specific cond type which is applicable.

again thsi tax code will be called- based on the cond record maintained for UTXJ in VK11-

TAXINN - Condition record based Procedure

where as

TAXINJ - Conditin & Formula based procedure.

hope it clears

[Former Member]

Hi

1. In tax inn we have to use taxcode while maintaining condition record.

2., u are getting problem while releasing to a/c. this is bcoz while mainating tax code FI const assign g/L accounts to tax code

( go to ftxp put tax code u will get detailed screen then select the tab where u will get data abt which gl assigned to taht respective tax code.

3. while doing our account determination we have to assign same gl accounts against the same account key which is used by Fi const while defining tax calculation proc(i.e img-accounting newglobal something--tax on sales & purchse where u will get tax calculation pro which is taxiinn to taxinj.

hope this will help u.

Regards

nitin