Tax codes and Tax categories(TAXINN) - SD

[Former Member]

My requirement is to capture the below:

Hi SD Gurus,

I need to capture the below tax rates....I am not sure,how many Tax codes and Tax categories (TAXINN -SD) are required to capture the same....How should i go with this ?

1. CST Tax rates:

u20222% CST against Form C

u20224% CST on some materials

u202212.5% CST

u20220% CST against Form H ,Excise is applicable

u20220% Excise against Form CT1- but CST applicable @ 2%,4%,12.5% CST

u20220% CST and Excise against Form CT1 and Form H

2. VAT rates:

u20220 % - Non -Taxable goods -Exempted

u20224% VAT on some materialsu202212.5% VAT

u20220% VAT against Form H (Excise is applicable)

u20220% Excise against Form CT1 but VAT applicable@ 4%,12.5% VAT

u20220% VAT and Excise against Form CT1 and Form H

Thanks

Sasi

[Former Member · Accepted solution]

Hello sasi,

First get things right. Don;t mix up excise with Tax. TAx refers to VAT/CST... which is configured through the Tax determination in SPRO.

Excise is dealt through TAXINN/TAXINJ based on the technique you see.

If you are using TAXINN you don;t use tax codes and maintain rates. You use condition records. The tax code used for maintaining the record is a dummy tax condition which TAXINN uses and dumps it as soon as it retruns a zero value and uses the condition record.

If however you are using the formula based approach then you will maintain the tax codes and rates in that.

Now Taxes are determined from the material master record and the customer master record where you give the tax indicators. BAsed on the combination it picks up the condition record.

You can have as many classification for customer tax classifications as you have detailed. Use two classifications in th material 0 and 1 . So a combination of customer classification and 1 from mm will give the desired value.0 - No tax and 1 - full tax for MM .

as far as excise is concerned the entire procedures are already in the system. all yu need to do is maintain condition records for the excise conditions.

regards

Jude

[Former Member · Accepted solution]

Dear Gurus,

I agree with you....as I can have 'n' no of customer tax classifications....I have initially planned for two Tax categories, one to capture CST and other for VAT and create the customer tax classifications as:

Customer Tax category: CST

0 - 0%CST Form H

1- 2% CST against form C

2- 12.5 % CST

And with the material combo by creating a condition record.......CST is picked.

The thing is sometimes the customer who has from C ,gives Form H (Form H - ciustomer is exempted from CST when he is buying the material for Export purpose....).I am not sure how to go with this becoz in the customer master I can maintain any one of the classifications(either 0 or 1 or 2) as mentioned above.

And at the same time customer some times gives CT1 form by which he is exempted from Excise ...So what is the access seq I need to go with ....or do I need to create one Additional Tax category to capture the Excise?

Pl throw some light to close this........

Thanks

Sasi

[Former Member · Accepted solution]

Hi,

First thing what i am able to understand that your material is Taxabel and your customer is also taxabel (with Form C) and sometime if he produce Form H he will be exempted from tax.

For this case first thing you please make Material Tax classification as "Taxabel" or there also you can maintain "Form C" is its applicabel to that material. And then maintain Customer tax classification for "Form C" and assign to customer master.

Now as you ,said sometime customer produce "Form H" and he will get exemption from Tax, so in this case you can change the Customer Tax classiffciation at run time i.e. while creation of Sales Order at Header Data -> Billing and there user can change Customer Tax Classification.

Same way if you wanna change Material Tax classification at run time then you have to go to Sales Order -> Item data - > Billing and there user can change Material Tax Classification.

Cheers !!!

Imran

[Former Member · Accepted solution]

Hi Imran,

1) Its really a nice solution if there is no other go....

I will check the same with different combinations and get back to you.....

2) And as for the Excise duties,what would be the preffered Acc Seq so that i can capture CT1...by which the customer is exempted from Excise....Do i need to have one more tax categor defined for this and mark the customer classification against this as 0 and 1.

Thanks

Sasi

[Former Member · Accepted solution]

Hi,

To be very frank about Excise Duty, I am not sure about Access Seq., but you can maintain the tax classification base of the same logic which i had told earlied for tax.

Cheers !!!

Imran

[Former Member · Accepted solution]

Thanks Imran for your valuable inputs..

SD Gurus,

Please provide your valuable inputs to close this issue.....

Thanks

Sasi

[Lakshmipathi · Accepted solution]

Dear sasi

If you dont maintain the customer code in J1ID - Customer Excise details, then he will be exempted from excise duty.

thanks

G. Lakshmipathi

[Former Member]

HI ,

I think u can maintain every thing in the condition records .

please choose the acess sequence , where u can enter the customer no.

to maintain the forms , go to the costomer master

cheers

[Former Member]

Hi,

You have to maintain Tax condition record for condition type (e.g. UTXJ) base on different permutation combination of Customer Tax Classification (from Customer Mater) & Material Tax Classification (from Material Master) and base on that you have to maintain tax code for the combination, its all base on client requirement.

For Example you have following type of classification, now you have to maintain Condition record for respective Condition Type (e.d. UTXJ) base on this combinitation.

Customer Tax Classification Code

Tax Class

1----

---

>Taxable

2----

---

>Form 14

3----

---

>Form 14B

4----

---

>Form C

5----

---

>Form 15

Material Tax Classification Code

Tax Category

0-----> Mat tax class. 0

1-----> Mat tax class. 1

2-----> Mat tax class. 2

3-----> Mat tax class. 3

4-----> Mat tax class. 4

5-----> Mat tax class. 5

6-----> Mat tax class. 6

7-----> Mat tax class. 7

First try to find whether proper tax classification has been maintain for Customer Master & Material Master, if not then first try to capture the tax classification requirement from client or there requirement so that you can classify them in as per SAP requirement and then maintain the condition record.

Hope now your query is solve.

Cheers !!!

Imran

[Former Member]

Hi Imran,

Thanks for the reply....

If i maintain 2 tax categories at OVK1 ,one for CST and one for VAT(Can i use the same condition types which i used for calculating the CST and VAT as Tax categories and assign the tax classification at OVK3 and OVK4 for the respective condition types) ...and create condition records for the same...is this fine?

Is there any other tax categories required ?

Thanks

Sasi

[Former Member]

Hi,

As per my opinion for CST & VAT tax code you have to maintain different u2013 different condition type for Customer & Material Tax Classification.

And the both Customer & Material Tax Classification has to design in such a way so that it should cover your all requirement.

Like for example for CST Tax rate:

2% CST against Form C u2013 You have to check with customer whether is depend upon the material or customer or both, and base on that you have to design tax classification for same.

4% CST on some materials u2013 You have to check with customer whether is depend upon the material or customer or both, and base on that you have to design tax classification for same.

Same way first you have to capture the requirement from client and then base on that you have to create material & customer tax classification in tow different condition type (CST & VAT)

If possible take help of your FICO Consultant also, for better understanding of all these tax.

Cheers !!!

Imran

[former_member204513]

Hi Sasi,

First you define the Customer tax classification as well as material tax classification based on your requirement.

Assign those tax classification to the respactivwe customers and materials in the master data.

You define the tax codes based on you tax rates for CST and VAT.

Noe you maintain the condition records in VK11 for CST and VAT condition types with respective to the Tax codes.

I hope it will help you,

Regards,

Murali.