CIN Tax Procedures

HI CIN GURU'S,
Can anyone please explain me why different tax procedures are used,
These below procedures are used for factory sales...
J1INFAC (condition-based excise determination) and JFACT (formula-based excise determination).
Then why TAXINN & TAXINJ....
getting confused, please help ASAP.
Please explain me how, where, why these procedures to be used and how does it would impact !!!
Thank you,
DAVID

Difference between TAXINJ and TAXINN
TAXINJ:
1. It is Formula Based Tax procedure.
2. It was most commonly used upto intial phase of R/3 4.7, but the latter implementations were with TAXINN.
3. Tax Code plays a vital role, as the Tax Rate are maintained in Tax Code.
4. It is complex compared to TAXINN
TAXINN:
1. It is Condition Based Tax procedure.
2. Tax Code is required to be maintained in Condition Record, & if Tax Code is not found in Condition Record, Sales Cycle will go upto billing, but not release to accounting. Hence even a single Tax code may suffice the requirement for different Tax rate.
Regards,
Rajesh Banka
Reward points if helpful.

Similar Messages

  • Questions about CIN tax procedure choice and pricing schemas

    Hi all,
    I have to implement SAP on a Indian company and I'm verifying all particularity about this country (in particular tax procedures and the great number of differents tax conditions used).
    I have two questions about tax procedures and pricing schemas. Every feedback about thse points will be appreciated.
    a) To choose tax procedure TAXINN or TAXINJ which are the elements that I have to consider?
         I have read lot of documentation about CIN implementation and Iu2019m oriented to choose TAXINN schema, but If possible I  would  to understand better which are on behalf of one choice or another.
    b) To define pricing schemas for India, after check with local users and using examples of documents (in particular tax invoice) actually produced, I have understood that taxes have to be applied on amount defined starting from price list, minus discounts recognized to customer plus surcharges eventually to bill (packing, transport,  etc.).
    Itu2019s correct for any type of taxes that tax amount is calculated on u201Cnet valueu201D defined at item level or there are exceptions to this rule?
    Thanks in advance
    Gianpaolo

    hi,
    this is to inform you that,
    a) About point 1 I know the difference between the 2 tax procedures (conditions or formulas). I also have read in others post in the FORUM that TAXINN is preferable. So I would to understand which are the advantages to choose instead TAXINJ. There are particular reasons or it'a only an alternative customizing setting?
    a.a. for give for posting the link : plese give me the advantages of TAXINJ and TAXINN
    CIN - TAXINN and TAXINJ
    b) About point 2, to define which value has to be used as base amount to calculate taxes isn't a choice, but is defined depending by fiscal requirement of the country, in this case India fiscal requirement. I know that, as Lakshmipathi
    write as answer on my question, exception could be, but it was important for me to understand if I have understood correctly the sequence of the pricing condition in the schema in "normal" situation.
    b.b. you can create your own pricing procedure for this and go ahead.
    hope this clears your issue.
    balajia

  • CIN tax procedure TAXINN

    hi all,
    in
    Logistics - General - Tax on Goods Movements - India - Basic Settings - Determination of Excise Duty - Select Tax Calculation Procedure
    if i choose to have tax procedure TAXINN,
    in
    Logistics - General - Tax on Goods Movements - India - Basic Settings - Determination of Excise Duty - Maintain Excise Defaults
    i can only define 1 condition type under CVD cond. field..
    what if i have a few several more condition type to be defined?
    because in J1IEX, the Total BED value is taken from the condition type defined in CVD cond. field.
    how is it possible for me to add in a few more condition type into CVD cond. field?
    i have tried adding the other condition types under field like A/P BED Cond. and A/P SED Cond. but the value was not being captured in J1IEX.
    anyone can advice?
    thanks.

    Hi all,
    my scenario is i need to have the following condition type(customized) to be populated in the excise invoice.
    Z001 - Z004 are the customized condition type for their respective tax.
    CVD - Z001
    Edu CESS - Z002
    Higher Edu Cess - Z003
    S.A.D  - Z004
    IN
    Tax on Goods Movements - India - Basic Settings - Determination of Excise Duty - Maintain Excise Defaults
    since i am using TAXINN, i have managed to tagged Z001 to CVD cond field and the value was able to come out in J1IEX correclty.
    what about Z002 to Z004? do i need to switch to TAXINJ so i can populate them into A/P BED cond, A/P SED Cond, A/P AED Cond? what are the alternatives for TAXINN?
    i read somewhere that for india implementation, it's best to use TAXINN, as TAXINJ will be obsolete soon. - correct me if i am wrong.
    I will need to populate all the values above to in J1IEX so that in my RG23D form can capture and display the value from Z001 to Z004.
    thank you.

  • CIN, TAX PROCEDURES PURPOSE

    Helloooo SD Gurus,
    Pl resolve my doubt regarding the exact difference between taxinj, taxinn procedures with live example.
    tnx in advance.
    yours
    venkat g

    The only difference between TAXINJ & TAXINN is that TAXINJ is formula
    based tax procedure which is dependant to a large extent on routines
    to calculate taxes at each level.
    TAXINN on the other hand is condition based tax procedure which is very
    similar to the standard pricing procedure & is not dependant on routines
    and other programs to fetch taxes. It is simply dependant on condition
    records maintained for each of the tax conditions.
    Prior to R/3 Enterprise we had only formula-based and from R/3 Enterpri
    version you will have the option of Formula-based or Condition-based.
    If you select TAXINN, it will support only condition- based excise
    determination. And if select TAXINJ, you will have the option of Formula
    -based and Condition-based (in SD not MM).
    If you have future plans for extending your organisation to our new
    dimension product such as CRM....then using TAXINJ would mean that the
    formulas would need to be copied/rewritten to the CRM IPC. Where as you
    would not be required to do that in TAXINN....
    So if you do not have any plans for extending SAP solutions in your
    organisation then you can use TAXINJ, else it is recommended that you
    use TAXINN only.

  • CIN TAX PROCEDURE

    Can u pls. help me to know TAXINN procedure and creating a new tax code??

    Hello,
    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.
    CIN:
    IMG > Logistics - General > Tax on Goods Movement > India > Basic Settings >
    Maintain Excise Registrations
    For the tax code can be create in FTXP
    Regards
    Rajesh Dalal

  • Tax  Procedure-TAXINJ/TAXINN-----cin

    Hi Gurus,
    We have a stanrdard pricing procedure like RVAA01 and inthis procedure we maintain all conditions like pricing, discount, frieght, tax..etc., but my doubt is why we need tax pricing procedure specially...like TAXINJ, TAXVAT, TAXINN..?
    And in TAXINJ we maintain condition BASB instead of PR00....what is the difference of these condition??
    Please help me..
    Rewards will be given...

    Hi,
    TAXINJ/TAXINN are the two different pricing procedure used in CIN.
    TAXINN 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.
    Hope i have answered your query.
    Thanking You
    Regards
    Manjunath

  • Let me know recommended Tax Procedure for CIN

    I heard from some of my friends Condition based Tax procedure is recommended by SAP (ie. TAXINN).
    If the above statement is true, Can any help me to identify the SAP Note no. for this recommendation? Because i need to give the same to my client.
    Thanks,
    Venkat

    Hi,
    952289 - General Clarifications on TAXINN
    950976 - Country Version India (CIN) Master note for MM FAQs
    Go to following link
    [https://websmp106.sap-ag.de/notes]
    and enter Search Terms as "TAXINN" it will provide list of all the possible SAP Notes relevant to TAXINN

  • Error in Tax procedure TAXINJ

    Dear Friends,
    During creating of tax procedure TAXINJ i am getting error in condition types. The error is Condition type JM01(IN: A/P BED deductib) not defined, please tell me where can i create these condition types i.e. JM01, JA01, JS01 etc...
    If possible please tell me step by step and navigation to create tax procedure taxinj.
    And tell me what is the difference between TAXINJ and TAXIIN
    Advanced thanks
    ES.

    CIN Configuration
    1.1 Maintain Excise Registration
     Logistics general  SAP Ref. IMG SPRO  Maintain Excise Basic setting India tax on Goods Movements Registrations
    1.2 Maintain Company Code Settings
    SPRO   Basic settingIndia  tax on Goods Movements Logistics general SAP Ref. IMG   Maintain Company Code Settings
    1.3 Maintain Plant Settings
    tax on Goods Logistics general  SAP Ref. IMG SPRO   Maintain Plant Basic setting India Movements Settings
    1.4 Maintain Excise Groups
    SAP Ref. IMGSPRO   Maintain Basic setting India  tax on Goods Movements Logistics general  Excise Groups
    1.5 Maintain Series Groups
    SAPSPRO   Basic setting India  tax on Goods Movements Logistics general Ref. IMG  Maintain Series Groups
    1.6 Maintain Excise Duty Indicators
    tax on Goods Logistics general  SAP Ref. IMG SPRO   Maintain Excise Duty Basic setting India Movements Indicators
    1.7 Maintain Subtransaction Type with Text
    India  tax on Goods Movements Logistics general  SAP Ref. IMG SPRO   Maintain Subtransaction Type with TextBasic setting
    1.8 Determination of Excise Duty
    tax Logistics general  SAP Ref. IMG SPRO   Select Tax Calculation Determination of Excise DutyIndia on Goods Movements Procedure
    1.9 Maintain Excise Defaults
    SAP Ref.SPRO   Determination of ExciseIndia  tax on Goods Movements Logistics general IMG   Maintain Excise DefaultsDuty
    1.10 Condition-Based Excise Determination
    tax on Goods Logistics general  SAP Ref. IMG SPRO   Define Tax Code for Condition-Based Excise DeterminationIndia Movements Purchasing Documents
    1.11 Condition-Based Excise Determination
    tax on Goods Logistics general  SAP Ref. IMG SPRO   Assign Tax Code to Condition-Based Excise DeterminationIndia Movements Company Codes
    1.12 Classify Condition Types
    SAPSPRO   Condition-BasedIndia  tax on Goods Movements Logistics general Ref. IMG   Classify Condition TypesExcise Determination
    1.13 Maintain Chapter IDs
    tax on Goods Logistics general  SAP Ref. IMG SPRO   Maintain Chapter ids Master dataIndia Movements
    1.14 Assign Users to Material Master Screen Sequence for Excise Duty
    SPRO   Master dataIndia  tax on Goods Movements Logistics general SAP Ref. IMG  Assign Users to Material Master Screen Sequence for Excise Duty
    1.15 Specify Excise Accounts per Excise Transaction
    tax on Goods Logistics general  SAP Ref. IMG SPRO   Specify Excise Accounts per Excise Account determinationIndia Movements Transaction
    1.16 Specify G/L Accounts per Excise Transaction
    tax on Goods Logistics general  SAP Ref. IMG SPRO   Specify G/L Accounts per Excise Account determinationIndia Movements Transaction
    1.17 Incoming Excise Invoices
    SAPSPRO   BusinessIndia  tax on Goods Movements Logistics general Ref. IMG   Incoming Excise InvoicesTransactions
    1.18 Define Processing Modes Per Transaction
     Logistics general  SAP Ref. IMG SPRO   Define Processing Modes Business TransactionsIndia tax on Goods Movements Per Transaction
    1.19 Define Reference Documents Per Transaction
    tax on Goods Logistics general  SAP Ref. IMG SPRO   Define Reference Documents Per Business TransactionsIndia Movements Transaction
    1.20 Maintain Rejection Codes
    SAPSPRO   BusinessIndia  tax on Goods Movements Logistics general Ref. IMG   Maintain Rejection CodesTransactions
    1.21 Specify Which Movement Types Involve Excise Invoices
    Logistics SAP Ref. IMG SPRO   Specify Which Business TransactionsIndia  tax on Goods Movementsgeneral  Movement Types Involve Excise Invoices
    1.22 Outgoing Excise Invoices
    tax on Goods Logistics general  SAP Ref. IMG SPRO  Assign Outgoing Excise Invoices  Business TransactionsIndia Movements Billing Types to Delivery Types
    1.23 Maintain Default Excise Groups and Series Groups
     Logistics general  SAP Ref. IMG SPRO   Outgoing Excise Invoices  Business TransactionsIndia tax on Goods Movements Maintain Default Excise Groups and Series Groups
    1.24 Subcontracting Attributes
    tax on Logistics general  SAP Ref. IMG SPRO   Subcontrac Subcontracting Business TransactionsIndia Goods Movementsting Attributes
    1.25 Maintain Movement Type Groups
    SPRO   BusinessIndia  tax on Goods Movements Logistics general SAP Ref. IMG   Subcontracting SubcontractingTransactions Attributes
    1.26 Utilization Determination
    SAPSPRO   BusinessIndia  tax on Goods Movements Logistics general Ref. IMG   Utilization Determination UtilizationTransactions
    1.27 Specify SAPscript Forms
    tax on Logistics general  SAP Ref. IMG SPRO   Specify Excise Registers Business TransactionsIndia Goods Movements SAPscript Forms
    1.28 Number Ranges
    SAP Ref. IMGSPRO   Number ToolsIndia  tax on Goods Movements Logistics general  Ranges
    1.29 Message Control
     SAP Ref. IMG SPRO   Message ToolsIndia  tax on Goods MovementsLogistics general  Control
    Regards,
    Rajesh Banka

  • EFFECT OF TAX PROCEDURE

    HI
    First we configured CIN settings (TAXINN procedure) in our 650 client (DEV clinet) later we changed to TAXINJ in DEV itself and again we changed to TAXINN only. Now the tax codes are not working while doing the MM transaction is coming stating that Tax code is not assigned to TAXINN procedure. Now i want to know is there any effect by chaning the tax procedure like this manner will effect the tax codes or not? Please help me in solving this issue.

    hi sravani,
    the following are the SAP Tax Procedures to configure
    OBBG - Assign Country to calculation procedure.
    OBCO - Specify structure for Tax Jurisdiction code. For country like U.S.A.
    LG -> character length of first level of hierarchy within your tax jurisdiction code structure.
    LG -> Second level of hierarchy as above.
    LG -> Third level of hierarchy as above.
    LG -> Fourth level of hierarchy as above.
    TX -> Tick if you want the system to determine taxes on a line by line basis instead of determining them on a cumulative basis
               per tax jurisdiction code.
    OBCP - Define Tax Jurisdiction code
    Dil -> Tick if you do not want tax amounts included in the based amount used for calculating cash discounts.
    Txl -> Tick if you want the cash discount amount deducted from the base amount that is used to calculate taxes.
    FTXP - Define Taxes on Sales/Purchases Code.
    OBCL - Allow Tax codes for non-taxable transactions.
         External Tax Determination U.S.
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    External Tax Determination
    1.1     Prerequisites
    Before using this configuration guide, you need to install the following building blocks in the order shown:
    Building Block     Description
    B32     Best Practices R/3 Installation
    V32     Best Practices Technical Objects (Manual DDIC, Tables, User Exit, Routine) + Install Transport
    J02     Organizational Structures
    V03     Financial Accounting
    V08     Basic Controlling
    V05     Delta Materials Management
    J04     Sales and Distribution
    V04     Delta Sales and Distribution
    1.2     Configuration
    1.2.1     Defining Physical Destination
    Use
    This activity defines an RFC destination.
    Procedure
    1.     Run the following activity:
    SAP R/3 Menu     Logistics  Central Functions   Supply Chain Planning Interface  Core Interface Advanced Planner  Settings   RFC Destination for Application
    Transaction Code     SM59
    2.     On the Display and Maintain RFC destinations screen, click TCP/IP connections.
    3.     Choose the Create button.
    4.     In the RFC Destination screen, enter the following:
    RFC destination     VERTEX_MAXTAX
    Connection type     T
    Description 1     Connection to Vertex
    5.     On the Technical settings tab, enter the following:
    Gateway host     Vertex server’s name
    Gateway service     Your gateway service for Vertex server
    6.     Choose the Save button.
    1.2.2     Define Logical System
    Use
    This activity defines the logical destination for external tax determination.
    Procedure
    1.     Start the following activity:
    IMG Menu     Financial Accounting (New)   Financial Accounting Global Settings  Tax on Sales/Purchases  Basic Settings  External Tax Calculation  Define Logical Destination
    Transaction Code     SPRO
    2.     Enter the following values:
    N     Ex     Event for ext. taxation proc.     Function Module     RFC Destination
    1     V     JUR     RFC_DETERMINE_JURISDICTION     VERTEX_MAXTAX
    2     V     TAX     RFC_CALCULATE_TAXES1     VERTEX_MAXTAX
    3     V     UPD     RFC_CALCULATE_TAXES1     VERTEX_MAXTAX
    3.     Choose Save.
    1.2.3     Maintain Pricing Procedures
    Use
    This activity maintains pricing procedures.
    Procedure
    1.     Start the following activity:
    IMG Menu     Sales and Distribution  Basic Functions  Pricing  Pricing Control  Define and Assign Pricing Procedures
    Transaction Code     SPRO
    2.     Enter the following values:
    Table VV_T683_VA
    N     Cl     U     App     Proc     LA     Destination     TSPP     PrTy
    1     030     A     V     ZVAXUD     EN     BU SMB with ext. Jurisd.NEW          
    2     030     A     V     ZCAX01     EN     Intercompany Billing US Ext.     X     
    3     030     A     V     ZDPJXD     EN     myPCC US DownPaym/Tax per doc.          
    4     030     A     V     ZSER02     EN     Service BP Exp Settlement Ext.          
    5     030     A     V     ZSPUS1     EN     SP:Resource Related Bill Ext.          
    6     030     A     V     ZSPUS2     EN     SP: Res Rel Bill Down Pay Ext.          
    7     030     A     V     ZSPUS3     EN     SP: Res Rel Bill CrossComp Ext          
    8     030     A     V     ZU0030     EN     Credit memo (US) Ext.          
    3.     Choose Save.
    1.2.4     Define Pricing Procedure Determination
    Use
    This activity defines pricing procedures.
    Procedure
    1.     Start the following activity:
    IMG Menu     Sales and Distribution  Basic Functions  Pricing  Pricing Control  Define and Assign Pricing Procedures
    Transaction Code     OVKK
    2.     Enter the following values:
    Table V_T683V
    N     SOrg     DChl     Dv     DoPr     Cupp     PriPr     CTyp
    1     BP01     01     01     A     1     ZVAXUD     PR00
    2     BP01     02     01     A     1     ZVAXUD     PR00
    3     BP01     01     01     I     1     ZCAX01     
    4     BP01     01     01     V     1     ZSPUS1     RB00
    5     BP01     01     01     W     1     ZSER02     
    6     BP01     01     01     W     2     ZSER02     
    7     BP01     01     01     Z     1     ZU0030     
    8     BP01     02     01     Z     1     ZU0030     
    9     BP01     03     01     I     1     ZCAX01     
    10     BP01     03     01     I     1     ZCAX01     
    3.     Choose Save.
    1.2.5     Activate External Tax Interface
    Use
    This activity activates external tax interface.
    Procedure
    1.     Start the following activity:
    IMG Menu     Financial Accounting (New)  Financial Accounting Basic Settings (New)  Tax on Sales/Purchases  Basic Settings  External Tax Calculation  Activate External Tax Calculation
    Transaction Code     SPRO
    2.     Enter the following values:
    Table V_TXD_E
    N     Reference     Ex     version of the tax interface     TC     RFC Destination
    1     TAXUSX     V     TAXDOC00          VERTEX_MAXTAX
    3.     Choose Save.
    1.2.6     Assign Country to Tax Calculation Procedure
    Use
    This activity assigns a country to tax calculation procedure.
    Procedure
    1.     Start the following activity:
    IMG Menu     Financial Accounting (New)  Financial Accounting Basic Settings (New)  Tax on Sales/Purchases  Basic Settings   Assign Country to  Calculation Procedure
    Transaction Code     SPRO
    2.     Enter the following values:
    Table V_005_E
    N     Cty     Proc     Name
    1     US     TAXUSX     
    4.     Choose Save.
    1.2.7     Allocate Company Code to Non-Taxable Transactions
    Use
    This activity allocates company code to non-taxable transactions.
    Procedure
    1.     Start the following activity:
    IMG Menu     Financial Accounting (New)   Asset Accounting  Asset Accounting(Lean Implementation)  Organizational Structures  Assign Input Tax Indicator for Non-Taxable Acquisitions
    Transaction Code     OBCL
    2.     Enter the following values:
    Table V_001_J
    N     CoCd     Company Name     City     Input tax code     Output tax code     Jurisdict. code
    1     BP01     SAP Best Practices     Palo Alto     I0     O0     XX00000000
    3.     Choose Save.
    1.2.8     Create Number Range for External Tax Document
    Use
    This activity creates a number range for the external tax document.
    Procedure
    1.     Start the following activity:
    IMG Menu     Financial Accounting (New)  Financial Accounting Basic Settings (New)  Tax on Sales/Purchases  Basic Settings  External Tax Calculation  Define Number Ranges for External Tax Returns
    Transaction Code     OBETX
    2.     Enter the following values:
    Table NRIV
    N     Object Name     Subobject value     Number range number     To year     From number     To number     Curr. Number     External
    1     ETXDC_NR          01     0000     000000000001     999999999999          
    3.     Choose Save.
    1.2.9     Activate External Updating
    Use
    This activity activates external updating.
    Procedure
    1.     Start the following activity:
    IMG Menu     Financial Accounting (New)  Financial Accounting Basic Settings (New)  Tax on Sales/Purchases  Basic Settings  External Tax Calculation  Activate External Updating
    Transaction Code     SPRO
    2.     Enter the following values:
    Table V_TRWCA
    N     Comp     To year     Activ
    1     EXTX     2999     X
    3.     Choose Save.
    1.2.10     Creating Tax Codes for External Tax Calculation
    Use
    This activity creates tax codes for external tax calculation.
    Procedure
    1.     Start the following activity:
    Transaction Code     FTXP
    2.     The following five tax codes were created for the tax procedure TAXUSX and country US.
    Tax Code     Description     Condition types      Tax Type     Relevant to Tax     Tax  Category
    O0     A/R Sales Tax Exempt     Condition types XR1–XR6 are maintained with a 100% rate.      A
    (Output tax)     2     
    O1     A/R Sales Tax     Condition types XR1–XR6 are maintained with a 100% rate.     A
    (Output tax)     0     
    I0     A/P Tax Exempt     Condition types XP1I–XP6I are maintained with a 100% rate.      V
    (Input tax)     2     
    I1     A/P Sales Tax     Condition types XP1I–XP6I are maintained with a 100% rate.     V
    (Input tax)     0     
    U1     A/P Self Assessment Use Tax     Condition types XP1I–XP6I are maintained with a 100% rate. Negative 100% is entered for condition types XP1U–ZP6U to force the credit entry to the tax liability accounts.     V
    (Input tax)     0     1 (Consumer Use Tax)
    The values in the Relevant to Tax column can be interpreted as follows:
    •     Setting the Relevant to tax indicator to 2 will bypass the call to the external tax system, which saves processing time. If handling exemptions within Vertex or Taxware, then this indicator must be set to 0 or space, because the call must be made to Vertex or Taxware to access their exemption handling.
    •     Leaving the Relevant to tax indicator blank means that the tax code is relevant to tax and a call will be made to Vertex or Taxware to decide the tax rate.
    You can verify the settings using transaction FTXP.
    1.2.11     Change Jurisdiction Codes for SAP Best Practices Cost Centers
    This activity removes the standard jurisdiction codes from cost centers in order for Vertex to determine a valid jurisdiction code. The jurisdiction code found by Vertex is based on our default Palo Alto address.
    If you want to create different addresses for each cost center, choose Accounting  Controlling  Cost Centers  Master Data  Cost Center  Individual or Collective Processing.
    1.2.12     Change Jurisdiction Codes for SAP Best Practices Company Code and Plants
    This activity goes through the organizational elements of the SAP Best Practices — company code BP01 and plants BP01 and BP02 — and remove the standard-delivered jurisdiction code from the related addresses in order for Vertex to determine a valid jurisdiction code. The jurisdiction code found by Vertex is based on our default Palo Alto address.
    If you want to create a different address for each of the organizational elements, use transaction OBY6 to change the company code address, and transaction OX10 to change the plant addresses.
    dont forget to reward me points if it helps you
    regards
    karthik

  • Cin pricing procedures

    what r the major differences between TAXINJ and TAXINN. which would be very useful in present scenario. and advisable,
    will reward

    Refer link below hope it helps
    TAXINJ/TAXINN are the two different pricing procedure used in CIN.
    TAXINN 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.
    TAXINN AND TAXINJ difference ? AND Which is better ?
    TAXINJ & TAXINN are Tax Procedures in India. TAXINJ is old version & TAX INN is new version. Both has its own advantage & disadvantage.
    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
    From 4.7 version onwards of SAP, TAXINN is being recommended & used. TAXINN is more user friendly & condition record based. In TAXINN, Tax Codes are statistical & of not much relevance, but are required to be maintained in condition record for taxes condition type. This makes Tax Codes simpler. The implication is that if say we are having product range such that say Excise rate differes for separate chapter ID, VAT, CST, we need not have the tax codes to that combination. For example:
    Tax Code: A1
    Can be used for any rate of excise duty, as tax code is only required to be maintained statistically in condition record.
    Tax Code: A2
    Can be used for any rate of VAT, as tax code is only required to be maintained statistically in condition record

  • What is tax procedure in india is only vat?

    hi, good morning to everybody,
      i am working on sap sd module , i have idea tax determination procedure but i don't have complete idea about tax procedure can anybody explain about tax procedure and what is relation between cin and tax proceudre...
    pls help me out...
    thanks,
    hari shankar..

    Hi,
    Please refer to
    SAP Note - 950977 Country Version India (CIN) Master note for SD FAQs or
    SAP Note - 950976 Country Version India (CIN) Master note for MM FAQs
    SAP Note - 532557 FAQ: Country Version India (CIN) General queries
    Links below : http://help.sap.com/saphelp_47x200/helpdata/en/40/a23c39129ffe2ee10000000a114084/frameset.htm
    Rgds.

  • Tax procedure Routine

    HI Team.
    Case 1: Tax amount calculation
    Net Price(Basic Price) + Freight on tax or Packing on
    Forwarding on Tax + Excise duty + Vat/CST = Total value
    In this case Tax procedure Routine is 17.
    Case 2: Tax amount Calculation
    Net Price + Excise duty + Freight + Vat = Total value
    In this case Tax Procedure Routine is 363.
    MY Requirement is i want above 2 Requirements in  PO Creation, Please tell Tax procedure Routine to match above cases.

    Hi,
       If you are working for CIN, then refer the doc: Tax Calculation on Freight - Different Scenarios
    Regards,
    AKPT

  • VAT Tax procedure

    hi
       please solve my problem, my client  requirements is They want to include Material cost 100 rupees, VAT 4%(recoverable), Freight 10% in PO, for that how i want to configure the pricing procedure with out CIN.
    Note: Freight should go to Material expence account, VAT should go to Seperate account.
    please provide What is the Condition type, Account key, accruals.
    Regards
    Dhanasekar

    hi ,
    create the statastical conditions for the VAT 4%
    isert the same in the pricing procedure after NAVS and NAVM conditions .
    if require after freight condition.
    But to take VAT to setoff account u need to create the TAX procedure.
    regards,
    sujit

  • Tax procedure for sd

    do we need to have the taxinn procedure((which we maintain in Menu Path: SPROFinancial Accounting Financial Accounting Global SettingTax on Sales / PurchasesBasic Setting  Check Calculation Procedure Define Procedures)) for sd? Since we directly include the condition types in the pricing ex :Jass , jexp etc. And then we maintain the values for this conditions in vk11.
    for example jexp will be maintained as
    customer/plant/region-> 11%.
    if we maintain as above in the conditon record, when ever this combination comes this condtion value will be populated in the sd pricing procedure.
    so tellme why we need this taxinn pr4ocedute for sd and its usage.

    Dear Ramesh,
    TAXINN- Condition record based tax determination. Records are maintained in VK11 for tax condition types in SD & MM is FV11
    TAXINJ- Formula based tax determination.
    TAXINJ- All tax calculations MM & SD side are calculated in Taxprocedure. SD pricing procedure copies the tax calculation from Taxprocedure to SD condition types in pricing. Deductable & Non deductable calculated in MM Side calculated in Tax procedure. SD & MM condition types maintained in taxprocedure
    In TAXINN- All MM calculations are calculated in Taxprocedure.  SD side is calculated in pricing procedure directly.   In purchase we are using dummy taxcode. The taxprocedure calculated deductable & nondedeuctable. Non deductable adds to Cost of goods. Deductable will flow into the respective condition types maintained in tax procedure & MM Schema. While doing MIGO & J1IEX transaction CIN tables will update.
    MM tax condition types maintained in TAXINN  SD is not maintained.
    I hope you understand the imp of taxprocedure
    Regards,
    Deepu Pillai

  • Reg tax procedure

    Hi All ,
                I am new to cin configuration so it would be helpful to me if anyone explains abt tax and price procedures and conditions.Actually what is the link between tax procedures and pricing procedures in sd.why do we maintain 100% for some condition types which is already maintained in ftxp.
    Regards
    Lena

    Hi Leena,
    let understand by below example.
    i)The link between tax procedures and pricing procedures in sd is TAX CODE
    ii)we maintain 100% for some condition types which is already maintained in ftxp----  It  is in case when we need full  tax is applied.
    you can also maitained 50% also or 0% etc also  in the records.
    i.e  for  BED condition In Jmod(J1id) = 10%
    Basic price =RS100
      JMOD  = 100% of Basic price equals Rs 10 (Condition base Value)
       JEX2 (VK11) 
                  equals100%  of JMOD   corresponding doc value= Rs 10
                    equals50%  of JMOD   corresponding doc value=Rs  5
                     equals150%  of JMOD  corresponding doc value =Rs 15
    so you can control the BED value  in the DOC by this way.
    for  process kindly ref SAP help.
    thanks,
    SAPSD25

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