Tax Calculation in MM and SD

HI
I am little bit confused in Tax Calculation in MM and SD . Please see the scenario below
In my current project in MM side we maintain Base price , discounts and other MM related conditions using MEK1 and for Tax related conditions we use FV11
So we use Pricing Procedure and Tax Procedure
But in SD side , Pricing ,discounts and also taxes related conditions are maintained in VK11 , SD uses all custom conditions for Tax
So my questions are as follows
1- In standard SD - do SAP have Pricing Procedure and Tax Procedure or both can be used within one procedure ?
2- So in MM can we use tax conditions ( Custom tax conditions) in MM calculation schema and determine the taxes ?
3- In MM if we use calculation scheme and tax procedure , then how tax base is determined for tax calculation ?
Thanks and regards
Bhushan

Hi,
In mm we use Pricing Procedure and Tax procedure both.
2- So in MM can we use tax conditions ( Custom tax conditions) in MM calculation schema and determine the taxes ?
Normally you use MM Pricing Procedure for Base price, discount, freight, packaging etc. However for import scenario custom tax conditions like Basic Custom Duty, CVD, Cess, Sec cess is added in MM pricing procedure.
The Tax procedure could be used for excise duties , CST, VAT, service tax.
3- In MM if we use calculation scheme and tax procedure , then how tax base is determined for tax calculation ?
If you check your tax procedure say taxinn you have condition type BASB and routine for base value as 362 through which it calculates base value
Where as in Sd you could use it in one.
Thanks and regards

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Witholding Tax calculation while payment and advance

Dear experts,
I have few questions as below. It would be great if you can help me out in this :
In vendor master I have two WTH tax codes for invoice and payment and marked as liable.
Incase of invoice (FB60) posting system is calcu;ating correctly and posting, but while posting no popup for to rectify the WTX code also no base amount is populating in WTH tax tab of invoice posting. Is this correct way??
While making payment for the same invoice through F-53, system is again calculating on same open item and no popup, until I go to WTH tax tab and delete the tax amount. What is lacking in my customising of WTH tax code (payment type), to restrict WTH tax calcutaing twice ??
While making advance payment by F-48, system not calculating WTX tax and showing tax code is mandatory, even though tax code (V0-tax exempt) entered, no WTH tax calculation happening. I have checked all Field status of document type and recon account, nothing is mandatory. I dint know why?? Please help in this regard.
Thanks in advance.
Regards
Abhi

Hi madhu
Thanks for explaining the process it works.
Regarding the error I was facing earlier to enter the tax code in F-48 for the tax category was marked as ' * ' in the advance reconciliation GL. I have removed them and now the error is not coming.
But now for the same or advance payment with F-48, I am not able post the document, though the payment WTX code is showing but not calculating the amount for the same.
The error is
"Withholding tax amount exceeds total bank line item amounts."
Message no. 7Q320
How to post it. Please help.
Regards
Abhi

Tax calculation in SRM and passing onto R/3 PO

Hi,
We are on SRM_SERVER 550, SP07 and R/3 4.7 backend.
1. We have a requirement wherein we want the tax determination to happen in SRM. Basically there is no logic for determining the tax codes, but the user himself selects it per line item when creating the cart.
2. We want this to be transferred to the backend PO line item. The tax codes in SRM and R/3 are identical.
Can this be achieved by standard configuration?
I checked that there are 4 choices for tax calculation in SRM
No tax calculation
Tax calculation occurs in backend
Customer specific implementation'
Tax calc occurs via external system
tax calc occurs via TTE
I am not sure which one we should be selecting (currently its no tax calc). I am also not sure if the tax code which is selected in SRM will be passed onto R/3 Or should this be mapped in the BBP_CREATE_BE_PO_NEW Badi?
The option thro development is to provide a custom field where users can enter the tax code/choose from a list and then map it to the tax code(TAX_CODE - MWSKZ) field in badi BBP_CREATE_BE_PO_NEW. But we would prefer to stick to the standard options if they are feasible.
Any pointers to this would be very helpful.
Regards,
Srivatsan

Hi,
If you have a classic scenario where the PO is created in the backend only the standard configurations will work for this.
1) Determine System for Tax Calculation--- R/3 Tax calculation occurs in backend.
Tax calculation occurs in the Backend System
Tax calculation occurs via RFC in the backend system in Financial Accounting. If an external system is connected to the backend system (Vertex or Taxware, for example), this is automatically called from the backend system.
2) Enter tax code :
As you mentioned use the same key and also the description here. Make the zero tax as No tax and make it as default also ( which is safer for all users).
With these two config steps you will get an F4 help in the for all the tax codes defined whereas the system will suggest the zero tax as the default.
The other config steps are optional where you can have tax codes for you product category. Please do configurations in these steps only if required.
This SC tax code will be there in the PO created from SRM provided if you have entry for this in FTXP in the R3 system.
As far as we have configured you dont need BADI for this standard Tax calculations.
If the invoice is made in R3 with reference to this PO then this tax code can be changed.
Best regards,
Sridhar.

Tax calculation in backend and in SRM (classic and standalone scenario)

Hello,
I have an issue regarding calculation of tax. 2 scenarios are used in common: classic and standalone. One node of Organizational structure is using classic scenario, another node is using standalone. So I have 2 Accounting Systems defined (one for each node).
Requirement is:
- For classic scenario, setting the tax calculation in backend
- For standalone scenario, setting the tax calculation to no tax calculation
Problem is that I can not customize the system this way. I do not know any mean to set 2 ways for tax calculation. Would you have any idea to do this?
Thanks,
Patrick

Hi
<b>Please go through this -></b>
http://help.sap.com/saphelp_srm50/helpdata/en/f4/8b1d40bb37e569e10000000a155106/frameset.htm
Note 848164 SUS3.0: FAQ: Logic of Tax calculation within SUS
958273 FAQ: Taxes in SRM-SUS
999896 EBP tax codes not correctly mapped to back-end tax codes.
908659 Follow-up note for Note 509594
931198 Missing Tax Code in Limit Shopping Cart
430202 Delivery address in shopping cart in BAPIEKPOC
931198 Missing Tax Code in Limit Shopping Cart
881086 Country-specific tax calculation
703292 TAX. Input/Output tax in SAP Supplier Self-Services with TTE
513250 ERS. Tax calculation with the new 3.0 function
390861 Transferring tax table for ERS from backend system
Note 657146 Enhancement for US tax calulation: Functions
510142 EDI-Customizing: Tax code tax-exempted transactions
317040 MR08: Message M8267
49436 MR44: No message if the tax amount is different
Note 84127 Tax Jurisdiction Code for EDI/ALE and Intercompany
Also Try BBP_DET_TAX_BADI.
Regards
- Atul

Tax calculation (excise duty and purchase tax) issue

Hi friends,
we want to automate MIRO.
we are using BAPI ( BAPI_INCOMINGINVOICE_CREATE ).
while posting that does not propose excise duty ( Modvat ) amount and
sales tax component is calculated on basic price instead of Basic plus Excise.
we are using BAPI in calculate tax mode.
( BAPI_INCINV_CREATE_HEADER-CALC_TAX_IND = 'X'. )
In MIRO:
Basic price   - 100.00
Excise duty -   16.32
(16.32%)       -
Total1           - 116.32
sales tax      -     4.65
( 4% Total1 )
Total            - 120.97              -         Invoice amout
In BAPI
basic price    - 100
Excis duty    -     0                 - Since not proposing while posting
Sales tax      -     4
(4% on basic) -
                      104
hence difference is Excise - 16.32 + Tax component on Excise 0.65
total difference is 16.97.
please give me the solution for this problem.

Hi Experts,!!
Kindly let me know How to use Multiple vendor in BAPI_INCOMINGINVOICE_CREATE.
We have a requirement that in PO multiple vender will be maintained, we have to create individual wise invoice for multiple venders.
I have tried to create it is posing to one main vendor only.
pls. Give some solution
Regards
Sathish J

TAX calculation in GR and PO

Hi,
As we define the tax code , and mention this tax code in PO for calculation of taxes like BED,SED etc.In invoice tab we can see the calculated taxes and their respective amounts.
Now in MIGO while creating GR, do I have to maintain the tax rates once again iin GR excise tab also??
I wnat to know in GR whther system takes the tax related information from
1. tax code in PO or
2. from J1ID if yes from where in J1ID OR
3. We have mention the tax rates in GR excise item tab. As system should show some excise duty in "EXCISE ITEM " of GR screen.

it depends on tax procedure u use
if TAXInn
then it depende on condition record u maintain in FV11 for material plant vendor.
and in j1id u will have to maintain material chapter id combination and cenvat determation
also vendor excise details
excise indiactor for plant
excise ind for plant and vendor
if taxinj
then
tax value will be pickep up from Taxcode which u put in FTXP and put in po
in j1id u will have to put the tax rate for bed in excise tax rate.
hope this will hepl u
reward accordingly

Tax calculation on sales order and invoice is different

2007A, SP0, PL49
The tax on a sales order does not match the tax on the linked delivery and invoice by 1 cent. We take payment based on the sales order amount as the delivery and invoice are done after the fact. Why is the tax calculated differently on the delivery/invoice? We would want it to always match.
Item price = $111.04. Taxcode rate 13% has combination of 5% GST + 8% ONTAX.
On Sales Order, ONTAX = $8.88
On Delivery/Invoice, ONTAX = $8.89
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Something must be wrong with your Sales Order tax. The actual tax would be 8.8832. Round up to 8.89 is correct. Do you have any SP, FMS or add-on been used?
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Hi All,
anyone knows how the price and tax are calculated for consignment stock? in other word, among the info record , contract or material master, what determines the price and the tax calculation for consignment stock?
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Input Tax and Output Tax calculating wrong figures

Hi,
I have created Input Tax and Output Tax codes in SAP.
Input Tax- 3%
Output Tax- 4%
All the configuration is done as required. But when I am posting the Purchase and Sales Invoice, the tax amount is not calculating correctly.
For example:
Input Tax Calculation should be:
Vendor A/C.............. Cr 30000-
Expense A/C............ Dr 29100
Input Tax A/C............ Dr 900 (@3% on 30000)
Input Tax Calculation in SAP:
Vendor A/C.............. Cr 30000-
Expense A/C............ Dr 29126.21
Input Tax A/C............ Dr 873.79 (@3% on 30000)
The same is happening to Output Tax transactions.
Please advice.

My understanding about the Input Tax and Output Tax was wrong. In the issue reported
Input Tax Calculation should be:
Vendor A/C.............. Cr 30000-
Expense A/C............ Dr 29100
Input Tax A/C............ Dr 900 (@3% on 30000)---my understanding was wrong.
Input Tax 3% should be charged on Expense amount, in this case Rs 30000. But because in the editing option calculate tax on net amount option was not selected, hence SAP was giving the below entry, which is correct as well.
Vendor A/C.............. Cr 30000-
Expense A/C............ Dr 29126.21
Input Tax A/C............ Dr 873.79 (@3% on 29126.21) which is correct.
Hence, the Vendor amount should be Expense + Input Tax= 30000 * 3%=900 + 30000 (expense) = 30900.
Correct Entry should be:
Vendor A/C...............Cr 30900
Expense A/C............Dr 30000
Input Tax A/C............Dr 900
Resolved. Pankaj has given the correct answer.

Calculation procedure TAXINJ and tax key E1 not in table T007A

Hi guys,
While creatig a sales order I am getting the following error:
" Calculation procedure TAXINJ and tax key E1 not in table T007A"
Kindly suggest corrective measures.
Bst regards,
Ashok

Dear ashok
please check for the Tax code assignment which is determined in UTXJ condition.
for the sales order.
and check that tax code is defined as output TAX in FTXP.
for country IN and Tax procedure TAXINJ.
Thanks & regards

Customer interface - sales channel, price list and tax calculation

We need to let third party system to upload new customer information into OFS, but I can't see the above 3 fields:
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2 price list
3 tax calculation
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ra_customers_interface_all
ra_customer_profiles_int_all
ra_contact_phones_int_all
ra_customer_banks_int_all
ra_cust_pay_method_int_all
is there other interface table that allow us to set the value of above 3 fields?
we are using 11i.
Edited by: shng on Dec 1, 2010 10:43 PM

Are you creating Sales Order with any reference ? In case of ref. , must be User has changed it at Header Level.
Else , it could be due to Authorization Object maintained on that user ID. Kindly coo-rdinate with BASIS Cosultant.
Best Regards,
Ankur

Income Tax Calculations

Hi Folks
My Project is going Live on July 2006. Regarding Income tax i would like to upload all the Master data and Salary data effective 1-Apr-06 and would like to run the payroll manually for three months(April, May and June)by changing the Control Record.
I do not want to go for mid year Go-Live.
If i run Payroll Manually for three months manually the Income Tax is getting calculated from April itself where in Actual go live is only from July and i would like to deduct the system for Income Tax from July only.
How to make the system to calculate Income Tax only from July when i run Payroll manually from April.
Appreciate any help or Any other idea to make the system to work fine.
Regards
Ragavan

Hi,
Sorry for the delayed response. I just got into the group and saw your message. Hope your Go-Live was smooth and successful. One way to address the issue is to have an adjustment figure (either as a payment or deduction) and balance the income tax deducted so far and give the provision for calculations from July onwards.
Would appreciate if you can share how you went about it.
Thanks
Pradeep

Income Tax Calculation problem: Urgent Help Needed

Dear Gurus,
I am facing a unique problem. Our client has two incentives
1) Product Incentive
2) Sales Incentive
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Waiting for an early reply.
Thanking You,
With Best Regards,
Pratik

Hi,
I am not understand your problem give your mb then i talk to you
mhpo

Income Tax Calculations 2008

Hi Friends,
I have a Issue in Income Tax calculation,
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Gross Salary                   783,399.00
Exemption U/S 10                 5,600.00
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Empmnt tax (Prof Tax)            1,125.00
Aggrg Deduction                  1,125.00
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Rgds,
Sekar.

Hi Sekar,
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Warm Regards,
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Client is saying that as per their existing SAP system, the Income tax calculation is made on Gross salary. And they are saying that if any additional taxable payout is made in a month to an employee, then the total tax on this additional payout should be paid by the employee in the same month. So basically his total tax would be the (general regular monthly tax + total tax on the additional payment), which as per them the system is not calculating correctly since October 2010.

Hi,
Thanks for your reply Jurgen & Remi. I am pretty new to Payroll & this is India Payroll.
Now, the issue is how should I proceed ahead.
1. The client says that the wage types are already configured in the system in such way that on certain wage types, the tax which is calculated is paid in the same month. Can u pls inform that which processing class & cumulation class do I need to check in Table 512w_d for this wage type.
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3. The function I have heard which is used is India for Income tax is INTAX.
Looking forward to your reply.
Thanks a lot!!!
Edited by: SAP ST on Nov 25, 2010 7:24 PM

Tax Calculation in MM and SD

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