Deductible & Non deductible in tax codes

Dear All,
Can anyone pls let me know the difference between 100% non deductible and deductible in tax codes setup.
Regards,
Rahul

100 % non deductable % means,Tax accounts are not hited but it will hit the inventory account i.e. will increase the iten cose.
other wise it will hit the tax account.
some times client want that their tax ammount will increase the item cost not their tax account.
thts why using Non deductble % 100
Ex: I had purchased a raw material of 1,00,000 and the tax @4% then my tax ammount is 4,000. But my client wants to show the inventory value as 1,04,000 but not as 1,00,000.
Hope this will help you
Regards,
Neetu

Similar Messages

Deductible and Non Deductible Amount tax codes.

Dear MM Gurus,
Since I have a little doubt even though if you are busy I had to disturb you, by asking this. Please make your time to give me some clarification.
01     EDECSHECS(DED) +VAT 4% - (Ded)
02     EDECSHECS( DED) +VAT 12.5% - (Ded)
03     EDECSHECS(DED) +VAT 4% - (Non Ded)
04     EDECSHECS(DED) +VAT 12.5% - (Non Ded)
05     EDECSHECS(DED) +CST 2%
06     EDECSHECS(DED) +CST 4%
07     Zero ED + VAT 4% - (Ded)
08     Zero ED + VAT 4% - (NON Ded)
09     Zero ED + VAT 12.5% - (Ded)
10     Zero ED + VAT 12.5% - (NON Ded)
11     Zero ED + CST 2%
12     Zero ED + CST 4%
13     EDECSHECS(NON DED)+VAT 4% -( Non Ded)
14     EDECSHECS(NON DED)+VAT 12.5% -( Non Ded)
15     EDECSHECS+VAT 4% - Cap Ded
16     EDECSHECS+VAT 12.5% - Cap Ded
17     Zero ED + VAT 4% - CAP(Non Ded)
18            Zero ED + VAT 12.5% - (CAP Ded)
Suppose Tax codes are 01 and 02 where Excise duties are Deductible :
And 13 and 14 which are Non-Deductible.
Supppose if I use 01 and 02 which are deductible , I would maintain the condition record and GR is made and if MIRO is posted ModVat amounts would go to Modvat clearing Account.
But for which ModVat is not available , do I need to maintain the separate condition like we maintain in FV11.   When the effect of Non Deductible Amount will come ?
If I maintain the condition records for the above where the modvat is not available then there would be no difference between Ded and Nondeductible.
Because if I maintain the condition records for both ded and non ded both will be same.
Where and at what stage will I get the difference between the ?
Because My report requirement is
They want the Landed cost based on Modvat credit and VAT credit available or not.
Suppose :   Base Amt :               100
                  EDECSSECS:     14.42
                  Freight       :                20
                                  Total Value amounts to   134.42
If Modvat credit is available : 134.42-14.42=120 ( for Tax Codes 01& 02)
If Modvat credit is available : 120.0+14.42 = 134.42 ( for Tax codes 13 &14)
I am struck. Even though I saw by testing but I am little bit confused.
Please let me in brief in reply so that I could do this report with your guidance.
Thanks & Regards,
Girish.C.M.

Ok

Non deductible input tax

Hi Gurus,
We have non-deductible input tax codes with the process NVV in our system. The process permit the distribution to relevant expense/revenue items.
We also need to have the value of the net amount and the non-deductible amount in the items but we don't find the way to implement it.
Could anyone help us ?
Thanks in advance for your answer.
Chris.

HI,
We use NVV with posting indicator filled with 3 because we need to have the non-deductible amount distibuted in the expenses items. But we need to see also the net amount.
In fact, what should be interesting for us wold be a tax code with the process NAV where the GL account is the expenses GL account.
See an example below :
Customer : 1196 Eu
Expenses GL account 1000
Expenses GL account 174,44
VAT GL account 21,56

In me21n valuation type & tax code check

HI friends,
while po creation , if both valuation type and tax code is excisable then system should allow. if valuation type is non excisable and tax code is excisable then system should through an error message . So what should i do, please sujjest me.
points will rewarded .
with regards,
prasad

Hi prasad,
I have worked with a similar issue before.
Please try looking at user exit EXIT_SAPMM06E_012 under MM06E005. This is the user exit used for validation of PO before saving.
a. Create a project enhancement in tcode CMOD.
b. Create the include program ZXM06U43 used by EXIT_SAPMM06E_012
c. Activate the project enhancement
d. To successfully activate the project enhancment, you will need to create dummy sub screens as stated in the enhancement documentation. Or else ME21 screen dumps.
    SAPLXM060101
    SAPLXM060111
    SAPLXM060201
    SAPLXM060211
    SAPLXM060301
    SAPLXM060311
e. After activating the enhancement, place some test code in your ZXM06U43 include program. Put a breakpoint in there and then test run your ME21.
f. The transaction should stop at the breakpoint, check if the fields that you will require to execute your validation are all provided. If yes, then you can continue creating your user exit logic.
Hope this helps.

Non Deductible Tax Codes

Good Afternoon,
It is possible to use a non deductible tax code in a outgoing payment by account?
I'm trying but these codes are not available.
Thanks,
Susana Cunha

Hi Gordon,
I usually use these codes in A/P invoices. Now I'm trying to use that in an Outgoing payment by account, not in an A/P Invoice. These codes only work on A/P Invoices? (I know that in journal entries, to work correctly, I could not have defined the Non Deduct. Acc. in the tax code or in the other way should define a Non Deduct. Acc different from the Expense Acc.)
But could I also use these codes in a Outgoing payments by account? If yes, do you know how can I use it?
(I'm with SAP Business One 2007 A (8.00.232) SP:01 PL:08)
Thanks,
Susana Cunha

Create Tax code - non deductable

Dear all ,
Pl guide step by step : how to create new tax code (non deductable )
As well pl also guide for the steps need to carry out before the tax creation .
Regards

Hi Venky,
Go To Transaction: FTXP
This area gives you a step by step explanation on u201Chow to create a tax code in SAPu201D. Later on these tax codes must be used in the creation of condition tables such as for MWST.
Go to transaction code FTXP and select the country for which you need to create a tax code. This country is automatically linked to the Tax Procedure which has been set up in the menu path [IMG - Financial accounting - Financial accounting global settings - tax on sales/purchases - basic settings - Assign country to calculation procedure].
Enter in the field tax code. This must be a 2-digit alphanumeric code i.e. A5, 55, BB, etc.. Before SAP 4.5 (I believe) you could use other special characters such as @, ? etcu2026 But this is no longer applicable. See OSS note 212806.SAP will ask you to complete other additional fields such as:
          o description of the tax code: please give a clear description
          o define the tax type: define whether the tax code is relevant for input or output tax
          o Indicator which determines that an error message should be issued if the tax amount is not correct. It it recommended to flag this.
          o Eu code: One of the most forgotten parameter. If you do not set this parameter at u201C1u2033 then all transactions with this code will be not picked up in the ESL listing of that specific country. This code u201C1u2033 represents all the Sales from one EU country to another EU country.
          o The target tax code fields are used in case of deferred taxes. This is applicable for example in France. The VAT needs to be paid for example not when the invoice is issued but when the customer pays the VAT. There are here again special programs available in SAP for deferred taxes.
          o Reporting country: this field needs to be completed when you are using the plants abroad functionality. This means that when you as a German company have a Belgian VAT number and you have sales in Belgium (+ you need to submit a VAT return in Belgium) , then of course these invoices need to be booked in SAP with a Belgian tax code.
Further in the menu you can also allocate the amount where this specific tax code is used to a certain tax account. The tax type fields such as Base Amount, Input tax, Output Tax u2026 can be determined via the calculation procedures. Calculation procedures are defined in the IMG at [Financial accounting - Financial accounting global settings - tax on sales/purchases - basic settings - Assign country to calculation procedure]. Here you will need to define also the calculation levels. For example the Output tax is level 125 and the output tax will be calculated on the basis of the base amount. Therefore you put for the output tax in the field u201Cfrom levelu201D 100. The level of Base amount is 100. You do the same for the others.
Account Keys.
          o NVV: The non deductible VAT is automatically added to the expenses account
          o NAV: Indicate for this key a separate account for the non deductible VAT
          o ESA: Output tax in case of Acquisition of EU goods
          o ESE: Input tax in case Acquisition of EU goodsLast but not least you also need to complete the tax rate field.
Tax Percentage & GL Account assignment
Tax percentage can be maintained in two ways & that depends upon the Tax procedure that has been followed i.e. if tax procedure is formula based then percentage can be maintained in FTXP only, where as if the procedure is condition based then percentage has to be maintained under the identified condition type.
Once done GL accounts has to be assigned under OB40 for automatic posting of tax amounts.
Also Check : http://www.sap-exp.com/creating-tax-codes-in-sap.html

Error: there are non exicisable item with cenvat tax code

I am getting an error message there are non exicisable item with cenvat tax code while trying to add po for pick and pack from sales order. I request all of you to help me with it.
I have already checked if the item and ware house is exicisable in the check box of the master data.
Best regards,
Sandesh.Sreyamsh

Thanks mahendra and rahul,
Unfortunately my issue is not solved yet, the tax is not manually created it was created by sap during new company creation. I checked by adding other tax type in sales order but every time when I try to create sales bom it gives the above error.
@ Rahul the tax is under cenvat type and the Items has been added under exercise transaction. here is what im trying to do
I created a sales order for 4 of my items.
Then i try to create po for two of my as pick and pack items by checking Purchase orders indicator under logistics tab of sales order.
At this point i am getting the above said error.
All the items i am trying to add is exisable and tax is also of cenvat type.
Please help me out of this as im stuch very badly in this issue.
Regards,
Sandesh.Sreyamsh

Non Dedutable tax code issue

Hi Gurus,
I have one issue, User Created PO with non dedutable tax code and Did GR and while doing IR
Invoice Account Details
Posting        Accounting        G/L Code             Act/ mat/Ven             Amount
1                   K                        220000               Vendor code               5050.02-
2                   S                        230000                GR/IR Clearing Acc     4449.39
3                   M                        110950               Material code               600.66
Issue is tax amount is 600.66, Why it is posting Accounting Key M as this is non dedutable tax code, so as per my understanding
System shoud post 600.66 to GR/IR clearing account, so why it is posting to M.
Please suggest where it is went wrong?
Anil

hi,
as in your case you are not availing the cenvat credit, instead you are loading the same on the inventory as you could not avail it.hence the system has loaded the cenvat credit on the material that why you are getting sepearte line item in the accounting doc.
in the tax procedure you would have assign NVV accounting key against the condition type. you define the details of NVV in OBCN trx where you would have mentioned as seperate line item(2) against the posting indicator. if you have maintained (3) against the posting indicator then it would distribute the expense /revenue item.i.e nothing but your GR/IR account
Regards,
velu

Tax code to make non-editable after GRN against PO

Dear All,
I want to make tax code non-editable in PO after GRN is done against the LIne item.
Are there settings or User exit to do to make tax code non-editable?
Regards,
Rakesh

thanx for reply.
But the requirement is to make Tax code in PO non-editable after GRN (we don,t have CIN implemented.),
What happening is after GRn if tax ocde is changed in print preview the total or tax value is showing as per new/changed tax code. Also same tax code picked up in MIRO.
I want to avoid that.
Regards,
Rakesh

New tax code for non excisable plant

Dear all
Please suggest solution for following scenario
We created new comp. code and assign new plant, this plant is non excisable, my problem is that can I used same tax code which is I created earlier for first co. code or I have to create new tax code for new plant, these taxes I have to inventories on material, I am using tax inn and tax classification ***.sequence.
Vipin

Hi Vipin,
from my point of view you can use the same tax codes.
to inventorise the duties you have to make little change in the process.
while doing GRN if the material is excisable then the tabs will open. now you have to go to excise item tab and there you have to choose noncenvatable in the dropdown menu that is the material type.
in this way you can have the results you need.
regards,
Adwait Bachuwar

Same tax code to inventorise and non-inventorise the excise

hi
My client want to use the same tax code to inventorise and non-inventorise the excise values.
Requirement is as follows:-
two plants- plant1 is excisable and plant2 is in excise free zone.
tax code is T1 - 16 % BED + 2% ECS + 1% SEcess
they want to take the cenvat credit in case of plant 1 while doing procurement
ans want to inventorise the excise on material cost in case of plant 2.
I suggested them to use two different tax codes in which one is having the non inventorise condition types and other is having the inventorise condition types.
but they want to use the same tax code
Is it possible to do this ??
Regards
Anin

Hello Anis,
Use two different Tax code. Let's A for used as dedectable Tax(Convet Benefit)
A should have Coditions like this
Deduct able tax:-
          JMOP    - IN BED Settoff %
          JEC1     - A/P Edu. Cess Settoff
          JSEP     - IN A/P H Ecess Setoff
          JVRD   - A/P VAT RM Deductable
Also maintain its settoff 100% for all the condition Type.
JMX1 --     IN: A/P BED setoff
JEX1 ---      Ecess Setoff Sta
JHX1     IN: A/P SECess SOTot
Now for Non-deductable Tax(Inventrised) suppose ur Tax Code B
B should have condition Like this
JMIP   - IN BED
JEC2 - A/P ECESS
JSEI - H Ecss
JVRN - Vat
maintain the percentage in FV12.
Now for CENVAT benefit, in J1ID, maintain Material And the Plant both for whom you want the benefit
Hope Solve U !
Regards,
Pardeep Malik

Is there a way to automate the tax code assignation on non PO documents lik

I'm looking for a way to automate the tax code assignation on purchases, I'm aware of the condition techniques for POs, but I would like to understand if it can be also applied to the other document in purchases so we can have a totally automate process on tax code assignation.
Documents like: Contracts, Info records, RFQ, Scheduling agreements, Outline Agremments

What you need to do is to create condition tables & access sequences for condition type NAVS for purchasing documents like RFQ, Contract & Scheduling agreement. You can use the document types and document category to differentiate these. Obviously this is required only if your tax determination scenario is different between different document type, if the tax code to be determined is not linked to purchasing document type, then you only one access sequence which can have parameteris like PORG, vendor if required etc. which are common to all document types.
Once this configuration is done, then you need to maintain condition records using transaction MEK1 and maintain the tax codes as per the combination of parameters.
In case of Info-record, it is different as it is a master data and this automatic tax determination will not work there.

Creating a tax code in FTXP I can't fill in an account for NVV

Creating a tax code in FTXP,
for my tax code I've filled in a Tax Percent. Rate for Transaction Key NVV but SAP doesn't allow me to fill in an account for this
Transaction Key in the tab tax accounts.
What cuold it depend on?
Thanks

Hi,
Well NVV account key in sap standard is a non deductible key and it would not be display in OB40 for account assignment.
If you see NVV properties in OBCN it will display check box ticked for not deductible and posting indicat. 3.But if you want to use it for tax posting untick that check box and change posting indicator to 2.
Then it will show that key NVV in OB40 and let you assign gl for this key.
Regards
Arun

Expense G/L Posting with Tax Code

Hi Expert,
I got an issue as per below:
1. User purchase a gift with below posting via F-43:
   Dr Expense/Material 100 [with Input Tax 6%]
     Dr Input Tax 6 [auto created line]
          Cr Vendor 106
2. Then there will be a posting to re-class the Expense/Material account to Gift Expense account via Manual Journal:
     Cr Expense/Material 100 [with Output Tax 6%]
     Cr Output tax adjustment 6 [expected auto created line]
          Dr Gift Expense 106 [with Zero Rated Tax]
The issue that I am having now is, during the second posting via Manual Journal the 'expected auto created line' is not populating.
Does anyone knows why is this happen?
Thank you in advance.
Regards,
Izzat

Hi All,
Thanks for your advice,
Really appreciate it.
I actually managed to solve this issue by creating a new tax code by using a reverse charge mechanism.
Where in the tax code I maintained the Output Tax with -6% and Non Deductible Input Tax 6%. I simulated the scenario and it gave me the result as per what I want.
Thank you.
Regards,
Izzat Ibrahim

Issue in MIRO for inventorized excise tax code

Hi,
I have created a PO with excise tax code, but the excise amount to be inventorized,
PO price   : 100
EXCISE         10
ECESS          0.20
SECESS        0.10
VAT              13.79
Total net amount   100 and tax amount 24.09
   now as the excise condition are mark as non deductible so after GR the material and GR account are posted with the amount 110.30, base price + excise tax amount which is OK. But when I am doing the MIRO I enter the total amount as 124.09 on the miro screen then selected the tax code as per PO then material it is showing with amount as 100 insted of 110.30, because of this it is showing some balance differene , which i need to correct manually.
   Is there any option for this I want to create PO with same procedure with excise tax code which is to be post to inventory but in MIRO i want to avoid this manual correction.
regards,
zafar

HI,
But when I am doing the MIRO I enter the total amount as 124.09 on the miro screen then selected the tax code as per PO then material it is showing with amount as 100 insted of 110.30, because of this it is showing some balance difference , which i need to correct manually.
why 124.09 vat also want to inventories ?
try this click on calculate tax icon in MIRO and check it
Regards
Kailas Ugale

Deductible & Non deductible in tax codes

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