Difference between Deductible and Non Deductible tax

Hi All,
Could you please explain me the difference between deductible tax and non deductible tax and when to which type of tax. Also please kindly explain with an example.
I know that this would consume some valuable time of urs, but please kindly explain me this.
Thanks in advance
DSK.

Hi
In some countries, u can take credit for tax paid i.e. Tax vatable/deductible - in this case the tax amount is debited to a asset gl account and then later set off with ur tax payable
and for some taxes it might be non-vatable/non deductible - in which case the same would then be added to the inventory/expense
The settings for this would be done under tax conditions in MM
Thank You,

Similar Messages

Taxes: Deductible and non-deductible

All SAP Gurus,
What is the difference between Deductible and non-deductible taxes?
Regards,

hi
In case of some materials, the tax paid on purchase of items can be availed back from the goverment, This is called deductible tax. Here tax portion is not loaded to material inventory, It is posted to a separete GL account as per the config and later stage it will be cleared-off by finance
In case of non-deductible tax, the tax amount will be loaded to material inventory. Here company can not claim this amount back from govt.
regarding configuration, u have to define a new account key in case of deductible tax and assign gl accounts
in case of non-deductible tax u can use SAP standard key NVV
regards
kunal

Deductible and non-deductible tax in CIN???

Hi experts
Can anybody explain me about deductible and non-deductible tax in CIN.
Explain me with clear example from purchasing with excise duty point of view .
With some example of duty with some amount .
Thanks
SAP-MM

Hi,
Deductable Tax :- It is not part of your inventory...You have give Separate G/L in T code OB40.
Non Deducatable Tax :- Part of yout inventory. No Separate G/L.
Supppose PO 10 Qty @ 10 = 100 Rs
Tax 4% Vat = 4
Total 104.
Now In Case of Dedutable at Time of GR , GR/IR      100 Cr
                                                                    Stock       100 Dr
At time of Excise Posting
                                    Cenvat Account        4 Dr.
                                    Cenvat Clearing           4   Cr.
Non Deducatable        GR/IR         104 Cr
                                    Stock         104 Dr
The Following Conditions Falls in both Category as
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
SETOFF Must Be Maintained:-
JMX1 --     IN: A/P BED setoff
JEX1 ---      Ecess Setoff Sta
JHX1     IN: A/P SECess SOTot
Non Deductable Tax:-
                         JMIP    - IN BED Inventory
                         JEC2   - A/P Ecess Inventory
                         JSEI   - IN A/P H Cess Inventory
                        JIPC - IN C Sales Tax INV
                         JVRN u2013 A/P VAT RM Non-Ded.
Condition For CVD in CIN :-
                         JCV1    - IN CVD e.g. 14%
                         JECV   - IN CVD Prim Edu e.g. 2%
                         J1CV - IN CVD Sec Edu e.g. 1 %
Hope Help U !
Regards,
Pardeep malik

Deductible and non-deductible tax components

Hi
How to make condition type in tax procedure deductible and non-deductible ?
Regards
UMAPATHY.M

Hello Umapathy,
This is not the Tax procedure condition which decide, if it is deductable or non-deductable value. It is tax code which you define in TCode "FTXP".
You should select the correct condition while creating the Tax code.
Hope this information will help you.
Cheers,
Manish Jindal

What is the programming (ABAP) difference between Unicode and non Unicode?

What is the programming(ABAP) difference between Unicode and non Unicode?
Edited by: NIV on Apr 12, 2010 1:29 PM

Hi
The difference between programming in Unicode or not Unicode is that you should consider some adjustments to make on the Program "Z" to comply with the judgments Unicode Standard.
In the past, developments in SAP using multiple systems to encode the characters of different alphabets. For example: ASCII, EBCDI, or double-byte code pages.
These coding systems mostly use 1 byte per character, which can encode up to 256 characters. However, other alphabets such as Japanese or Chinese use a larger number of characters in their alphabets. That's why the system using double-byte code page, which uses 2 bytes per character.
In order to unify the different alphabets, it was decided to implement a single coding system that uses 2 bytes per character regardless of what language is concerned. That system is called Unicode.
Unicode is also the official way to implement ISO/IEC 10646 and is supported in many operating systems and all modern browsers.
The way of verifying whether a program was adjusted or not, is through the execution of the UCCHECK transaction. Additionally, you can check by controlling syntax (making sure that this asset verification check Unicode).
The main decisions to adjust / replace are (examples):
ASSIGN H-SY-INDEX TEXT TO ASSIGN <F1> by
H-SY-INDEX TEXT (*) TO <F1>.
DATA INIT (50) VALUE '/'. by
DATA INIT (1) VALUE '/'.
DESCRIBE FIELD text LENGTH lengh2 by
DESCRIBE FIELD text LENGTH lengh2 in character mode.
T_ZSMY_DEMREG_V1 = record_tab by
record_tab TO MOVE-Corresponding t_zsmy_demreg_v1.
escape_trick = hot3. by
escape_trick-x1 = hot3.
itab_txt TYPE wt by
ITAB_TXT TYPE TABLE OF TEXTPOOL
DATA: string3 (3) TYPE X VALUE B2023 '3 'by
DATA: string3 (6) B2023 TYPE c VALUE '3 '.
OPEN DATASET file_name IN TEXT MODE by
OPEN DATASET file_name FOR INPUT IN TEXT MODE ENCODING NON-UNICODE.
or
OPEN DATASET file_name FOR INPUT IN TEXT MODE ENCODING DEFAULT.
CODE FROM PAGE TRANSLATE a_codepage record by
record TRANSLATE USING a_codepage.
CALL FUNCTION 'DOWNLOAD' by
CALL METHOD cl_gui_frontend_services => gui_download
CALL FUNCTION 'WS_DOWNLOAD' by
CALL METHOD cl_gui_frontend_services => gui_download
CALL FUNCTION 'UPLOAD' by
CALL METHOD cl_gui_frontend_services => gui_upload
CALL FUNCTION 'WS_UPLOAD' by
CALL METHOD cl_gui_frontend_services => gui_upload
PERFORM USING HEAD APPEND_XFEBRE +2. by
PERFORM USING HEAD APPEND_XFEBRE +2 (98).
Best Regars
Fabio Rodriguez

Difference between deamons and non deamons

Pls someone tell me wat is the difference between deamons and non demons and i know that deamons will run in the background..and pls tell me why they r used...

Actually it's "daemon" (mythologically speaking a little more benign than demons).
A Java program terminates when every non-daemon thread finsihes. Setting a thread to daemon mode simply says that it's ignored for this purpose. It's usually used with background activities that can be abandoned at the end of the program without any need to clean up.
(More widely, in unix, a daemon program is one that runs in the background all the time, from when you boot up the machine to when you close it down.)

Difference between configurable and non configurable finished goods master

Hi
Pl explain the difference between configurable and non configurable finished goods master data.
Thanks
kamala

Hi,
Configurable material are used when you have a large number of combination of parts that go into a product. It means different combinations of the parts for same material. If you maintain a unique material code for each combination , you require a large number of material numbers. KMAT is used in such a case where you maintain just one generic product code. You assign class to this material having all variant characteristics.
A super BOM is maintained for such a material consisting of all possible alternatives. A super routing is also maintained consisting of all possible operations that could be used.
Typically configurable material is used in Made To Order (MTO) environment. However frequently ordered configurations may be planned with a material variant which needs to have a material master record. Thus Material variants may have stock and value. Depending upon characteristic values chosen at sales order entry Sales Order BOM is created. Routing operations are also chosen depending upon which BOM components are assigned to them.
Non configurable materials are like finish, semi finish materials having fixed BOM. A separate/single BOM exits for every finish material.
Revert back for more info.
thanks and regards,
Man

Difference between cumulative and non-cumulative key figures

Hi,
What is the difference between cumulative and non-cumulative key figures and under what conditions they are used. What is snapshort and where it is used.

Hi.............
Basically the key figures are of two types cumulative and non cumulative.
Cumulative are the normal one which you use always and they always bring the new values of the key figures in the delta that is if suppose A has value 10 and after change the new value is 20 then you will use cumulative key figures there, and your delta( new value) will bring 20.
but suppose your key figures field only the change in the prior value that is in this case the delta in the key figure value will bring 10 (20-10- change of 10 )as new value in the key figure A then you will have to model it through the non cumulaitve key figures.
Now
1) Cumulative is for the first case that is if the key figure alwyas brings the new values of the key figure and not the change sin the key fiures value.
2)NCum. value with NCUM value change:
In this case ther is only one field which brings the changes for a particualr key figure and you ahve to define that key figure as non cumulative.
Ex: In case of stock only one filed brings both ingoing value and outgoing value so 10 ,-4,100,-34.....
In this case you will this option and use the key figure here in the space provided.
3) In this case you haev two separate key figures one for the inflow of stocks and one for the outflow of the stocks.
you use one key figure for the inflow and one key figure for the outflow.
The main key figure autiomatically takes care of the logic and gives the correct output upon the summation
net value of stocks( inflow- outflow).
Also do remember in this case the key figure for inflow and out flow are the basic key figures that is cumulative key figures.
A non-cumulative is a non-aggregating key figure on the level of one or more objects that is always displayed in relation to time. Examples of non-cumulatives include headcount, account balance and material inventory. here the aggregation of key figure is based on the another info object
There are two different ways to define non-cumulative key figures:
Non-cumulative key figure with non-cumulative changes:
Before you can define the non-cumulative key figure, an additional cumulative key figure containing the non-cumulative change must exist as an InfoObject.
Non-cumulative key figure with inflows and outflows
There has to be two additional cumulative key figures as InfoObjects for non-cumulative key figures - one for inflows and one for outflows. The cumulative key figures have to have the same technical properties as the non-cumulative key figure, and the aggregation and exception aggregation have to be SUM.
Features of non-cummulative key figures
A non-aggregating key Figure.
Records are not summarized for Reporting
Exception Aggregation is being applied on these key figures on the level of one or more info objects usually with time .
Examples: Head Count, Account balance, Material stock
consider simple senario
Date Net Stock Quantity Sales Revenue
01.02.2005 40 1000
02.02.2005 50 2000
03.02.2005 25 3000
this is the query output if stock quantity has treated as cummulative and non-cummulative key figures
if stock quantity taken as a cummulative key figure
Date NET STOCK QUANTITY SALES REVENUE
01.02.2005 30 1000
02.02.2005 50 2000
03.02.2005 20 3000
RESULT 100 6000
in the above result the key figure has aggregated to the total value that wont give sense to the net stock quantity
if stock quantity taken as non-cummulative key figure
Date Net Stock Quantity (LAST) Sales Revenue
01.02.2005 30 1000
02.02.2005 50 2000
03.02.2005 20 3000
RESULT 20 6000
Hope this helps you..............
Regards,
Debjani................
Edited by: Debjani Mukherjee on Sep 15, 2008 7:22 AM

Difference between stock and non stock material

what is the difference between stock and non stock material. example of stock and non stock material?

Hello,
Stock Material
Material that is constantly kept in stock .A stock material has a material master record and is managed on a value basis in a material stock account.
Ex: Raw Material.
Non-stock Material
Material that is not held in stock because it is consumed immediately.
Ex: Office Stationary.
You need to create purchase order and accounting document for payment but the stock balance is always zero as it is issued out immediately to the various department.
Prase

What is the difference between cumulative and non cumulative keyfigures?

Hi Friends
What is the difference between cumulative and non cumulative keyfigures, when we r using the cumulative and non cumulative
Regards
Ravindra

Hi Ravindra,
Have a look at the help:
http://help.sap.com/saphelp_nw2004s/helpdata/en/8f/da1640dc88e769e10000000a155106/frameset.htm
http://help.sap.com/saphelp_nw2004s/helpdata/en/80/1a62f8e07211d2acb80000e829fbfe/frameset.htm
Go through these.
Re: Types of non-cumulative keyfigures
http://help.sap.com/saphelp_nw2004s/helpdata/en/8f/da1640dc88e769e10000000a155106/content.htm
See the following threads
non-cumulatives KF in reporting
Re: use of non cumulative keyfigure
Re: When do we use Non-Cumulative values?
Key figures:
1. Cumulative Vaules
2. Non Cumulative Values
Cumulative Values:
Cumulative Values are Keyfigures for which Keyfigure Values are must posted in every time unit that reported on (= time period specific Values).
Example:
Revenue
Non Cumulative Values:
Non Cumulative Values are Keyfigures for which KeyFigures are only evaluated for selected time Periods.
Cumulative Keyfigures With Exception Aggregation:
It's a 'normal' KF (with summation, min or max as aggregation behaviour), but you set some exception in this behaviour...for example, you can say that a KF, normally aggregated by 'summation', have to show the max value (or the average, or '0' or something else), that is the 'exception aggregation' when you use it in combination with 0DOC_DATE (or other char), that is the 'exception aggregation char reference'...in this case OLAP processor give to you the possibility to see your KF with different behaviour depending from you use 0DOC_DATE (in our example, MAX) or something else (SUMMATION).
Non Cumulative keyfigure with Associated Single Delta:
If you have a stock KF that is fed from only one (other) movement KF that can assume positive and negative sign.
KF1 (initial) STOCK (non-***.) = 100
KF2 flow = -30
KF2 flow = 70
KF1 (final) STOCK (non-***.) = 140
Non-cumulative key figure with associated in and outflow:
This is the case of 2LIS_03_BF KF stocks fields.
Here, we have the same situation in point 2, but you will have not only ONE flow KF, but TWO, one dedicated to in and another one dedicated to out !
You have to use this scenario if you have no KF that have positive and negative sign, but two KFs each one representing positive (in) and negative (out) logical sign!
KF1 (initial) STOCK (non-***.) = 100
KF2 (out))flow = 30
KF3 (in)flow = 70
KF1 (final) STOCK (non-***.) = 140
Website Addresses For Non Cumulative KeyFigures:
http://help.sap.com/saphelp_nw04/helpdata/en/80/1a62dee07211d2acb80000e829fbfe/frameset.html
http://help.sap.com/saphelp_nw04/helpdata/en/82/f2dc37f0f12313e10000009b38f8cf/content.html
http://help.sap.com/saphelp_bw31/helpdata/en/82/f2dc37f0f12313e10000009b38f8cf/content.html
http://help.sap.com/saphelp_erp2004/helpdata/en/d2/e0173f5ff48443e10000000a114084/content.html
Re: Non-Cumulative keyfigure example
Re: Types of non-cumulative keyfigures
/community [original link is broken]
http://help.sap.com/saphelp_bw32/helpdata/en/80/1a62dee07211d2acb80000e829fbfe/frameset.html
/community [original link is broken]?forumID=131&threadID=29557&messageID=273049
/community [original link is broken]?forumID=131&threadID=111914&messageID=1248243
Check this very useful docu.
https://www.sdn.sap.com/irj/servlet/prt/portal/prtroot/docs/library/uuid/93ed1695-0501-0010-b7a9-d4cc4ef26d31
****Assign Points If Helpful****
Regards,
Ravikanth

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

Difference between automatic and non-automatic page attributes

Hi,
Can anyone tell me difference between automatic page attributes and non-automatic page attributes?
and also difference between stateful and stateless mode with examples?
Thanks
Narendra

Hi Mullapudi,
If you mark a page attribute as u2018automaticu2019 (auto in the system), the attribute automatically gets its values via the calling URL or
via the navigation process from other pages.
This kind of attribute only has to be declared for one page.
It is identified by its name equivalence.
If another page uses a parameter with the same name,
at runtime that parameter automatically
gets the same values as the attribute.
Non-automatic page attributes
If you flag a page attribute as non-automatic, the attribute gets its values from the class attribute.
The visibility of page attributes when parameters are transferred between BSP pages depends on whether the navigation is explicit or implicit.
Explicit navigation
For example, if navigation->goto_page(page.htm)
Implicit navigation
With implicit navigation, the page attributes are transferred automatically from OnInputProcessing to OnInitialization, both in stateful and stateless mode.
The auto page attributes are refilled by the request, both in stateful and stateless mode.
Reward if Useful...
Regards,
Anita. B

Deductible and Non deductible Taxes

Hi all,
As there are two types are taxes 1. Deductible taxes 2. Non deductible taxes.
If i am right we calculate the deductible taxes using the tax calculation taxes.
But if the tax is non deductible how we handle it. Means do we maintain the Non Ded- tax condition types directly in the pricing procedure.
Or by some other way they are captured to NAVS/.NAVM condition types.If so how?

Hi Sherya
Dedcutible Tax - where you can take the cenvat credit.
Non Deductible Tax - the tax amount will be get loaded into the stock account.
Duty which you can not claim i mean values which are against Non deductible conditions flows in to NAVS /NAVM condition type e.g. CST which you can not claim so this CST value will flow into NAVS Condition type.So In pricing schema it will help you to get the total amount in the PO.
To flow the value into the NAVS/NAVM you have to define the value in subtotal column of Pricing procedure against these condition type
i think that is 5 or 6 just check it out
I hope this will get you clear
Thanks

Difference between Valuated and Non valuated Sale order stock

Hi All,
Can anybody tell me the difference between the above said subject with the steps involved in each scenario.
That is valuated sale order stock and Non valuated sale order stock in Product cost by Sale Order.
With Journal entries at each step and whether any WIP or variances at Production order level and sale order level and all the financial entries related to them
Thanks in Advance,
Ravi Kumar

Hi Shail,
Thans for your inputs,
But I wanted to know it in more detail. In what scenarios they are used with financial entries in both the cases.
I will give you my scenario. It goes like this,
My client is in pipe coating business, who receives pipes from customers and does only coating work(which is considered as service) and despatches it to the customer. this process is carried on the basis of work order(Sale order).
Now Production order is created and work is done on that with reference to Sale order for that particular customer.
So the pipe which my client receives should be non valuated stock as it will not be a raw material to them and the cost incurred on it is booked on production order like chemicals as raw material consumption, activity cost etc.
now in this scenario just tell me how and at which stage FI entries get generated at Production order and Sale order level, and also at wat level Standard cost estimate should be created i,e at production order level or sale order level(sale order cost estimate).
Will there be any entries at goods isssue and GR against production order. If no then how the COGM account will get hit.
Please tell me this scenario in both cases Valuated sale order stock and Non valuated sale order stock with financial entries in Sale order costing.
Thanks & Regards,
Ravi Kumar

What is the difference between Classic and Extended Withholding Tax

Hi,
Can some please tell me what is the difference between Classic Withholding and Extended Withholding Tax. How can I look at the Withholding Tax deducted from a particular invoice?
Number Guaranteed.
Thanks.

Dear Prem,
Withholding tax is the basically a tax withheld during the Vendor payment. So when making the payment to vendor the amount will be deduct (i.e withheld tax)
from the invoice and paid. The customer is actually the tax to tax authorities.
you can visit for more info.
Withholding Tax
For the config steps you go to the IMG path FI > Financila accounting for the Global settings > Withholding Tax
Withholding tax configuration is done by FI person.
Hope this helps you
Prem

Difference between Deductible and Non Deductible tax

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