VAT - Deductible and Non Deductible
Hello Experts,
How does the SAP treat VAT Condition if it is deductible and if non deductible.
Also how does the system load the values of certain conditions to the materials (Stock), what is the factor responsible for the same.
Waht are the accounting entries that are passed during MIRO ( ref to various prcing conditions.)
Best Regards,
Bhasker
Hi ,
You can use JVRD condition type for deductable and JVRN for Non deductable.
If u use JVRN, at the time of GR it will be added to ur material cost. and in MIRO also the same postings as CST.
Similar Messages
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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-MMHi,
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.MHello 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 -
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 -
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, -
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
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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 -
Dedutible and non deductible tax cin
Hi,
Can any one explain me what are the deductible and non deductible taxes in case of vat .
how we can configure these settings.
regards
veknkatIn case of some materials, the VAT paid on purchase of these items can be availed back from the goverment, This is called deductible tax. Here VAT 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 VAT, the VAT 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
hope this clarifies ur doubt
award points -
Total Tax and Non-Deductible column in Tax report
Hi all,
My client is using AU/NZ localization. We need to customise a Tax report based on existing Tax Report in Financal Report-> Accounting> Tax> Tax Report.
Does anyone know where to pull the information for colum "Total Tax" and "Non-Deductible"?
When I look at table CSI4, CSV4, ATX1, VRT1, OVTR, they are all empty. In addition, I can't find these information in JDT1 as well.
Appreciate your advice.Shwu -
You cannot pull the tax informatin and non-taxable dollars for a single BP - it would all need to be calculated from invoices and credit memos (at least that is the direction we took).
You can (i.e. for customers) use calculations and sums with the OINV and INV1 tables - they both have the field of VatSum, I believe. OINV has DocTotal and INV1 has LineTotal that you can use. Getting the right calculation with those sums depends a lot on how your customer has determined tax for the BPs (i.e. freight is/is not taxable, discounts, various taxing entities, etc...).
I do not have the exact SQL in front of me, but I remember something like the following being the key calculation...
OINV.DocTotal minus the sum of INV1.LineTotals and minus the sum of INV1.VatSums = Non-Taxable (with my customer it ended up being a lot of freight appearing as non-taxable). So $1,014.00 (DocTotal) minus $1,000.00 (sum of LineTotal) = $14.00 then $14 minus $9.00 (sum of LineVatSum) = $5.00 as Non-taxable.
If you want to have the taxing entities to show, then it is a matter of joining in other tables (OSTA, etc...)
Try writing some SQL in the Demo System SAP provides first - just to get an idea of how it can go...
Good Luck - that is about as far as I can take you - Zal -
Non-deductible tax configuration
Hello,
How to configure non-deductible cost? Is it something we can configure with certain percentages.
I did search other threads regarding this issue and found below solution.
1. Open Administration -> Setup -> Financial -> Tax -> Tax Type
2. Double Click on the row 'tax @4%' which opens, "Define Values for Tax Attribute Window:"
3. In this window, in 'Non Deductible %' give 100.
4. Save and Close this window.
But not sure which path or transaction code I can use to do above settings.
Best Regards,
Tapan
Best RegardsHi Ravi,
Thanks for your valuable help.
If we assign same GL account in account key VST (input tax) and NAV (non-deductible input tax) , then how can we specify the deductible and non deductible amount in Balance Sheet.
I have test below scenario.
Tax code K4 - 19% as Input Tax and 40% as non-deductible input tax.
So I got below entry.
Vendor - 1000 Cr
Inventory 628.93 Dr
Vat (GL a/c X) 119.50 Dr
Vat (GL a/c X) 251.57 Dr
Please let me know how can I show the above amount separately in B/S. Or do I need to assign 2 different account in VST and NAV respectively?
Regards,
Tapan -
CST and VAT amount (non deductible taxe) is debiting in the purchase price
Hi
I am facing some problem in migo FI documents
MY client is maintaining standard price for raw materials
While doing GR in MIGO CST and VAT ,both are non deductible taxes, is debiting in purchase price variance and crediting in GR/IR
The above said taxes are not debiting in raw material account now
I had already done all the settings in OBCN like tick mark, posting indicator and 3 Distribute to relevant expense/revenue items etc.,
but still the taxes are debiting in variance account. We are maintaining pricing procedure as TAXINJ
plz give your suggestions how to solve the problem.Hi
If you have maintained a Standard proce control in the material master, the non deductible taxes will not post into the material account, you need to maintain a moving average price control for the material to get the non deductible taxes posted.
Price variance account is trigerred due the reason as sytem is trying to post it on to the material and you maintained it as standard price, so sytem cannot add to the material, so it posts the amount in PP account.
Change price control from S to V, you r issue will be solved
Thanks & Regards
Kishore -
CST and VAT amount (non deductible) is debiting in the purchase price
Hi
1) We are maintaining standard price as price index
2) Pricing procedure as TAXINJ
3) While GR the CST and VAT amount (non deductible) is debiting in the purchase price
variance, and credit in the GR/IR
4) Which has to debit in the raw material account
5) Is there is any notes for the this
6) or any other solution plz send your replyHI..
it is not done in OBq3
See in OBQ3..you define Pricing procedure.against pricing Procudure you will give the account Key against the condition type in the Pricing Procedure.
For this Account Key ..you Define it as Detuctable or not in OBCN.
so it determines whether to add to raw material account or not..
but see in early post which is also valid even if you have define the sdame in OBCN.
Hope so it helps
Regards
Anjanna -
TAX value is not triggerring in JVCD, JVRN(VAT non deductible)
Hi All,
Tax values are not triggering in JVCD, JVRN even though the non deductible key NVV assigned to it, and but in OB40 NVV key is not there, and calculation type 371 is assigned to it in taxinn procedure
kindly suggest me the possible reasons..
regards,
sanjuHi,
For VAT ,not required to have calculation type 371 to assigned in tax procedure for VAT condition types JVCD, JVRN.
As VAT to be inventorised, then assignment of "NVV" acounting key in tax procedure is correct. If VAT treat as offsetting entry, then need to have an accounting key ( accounting key can be created in OBCN) & assigned to VAT condition types JVCD, JVRN and then assign G/L account to accounting key in OB40.
NOTE: But why you have two condition types JVCD, JVRN for VAT inventorised,(non deductible)
Regards,
Biju K -
Now to configure Non Deductible VAT in SAP
Dear Friends,
I have one specific requirement for non deductible VAT. In this case the VAT amount should be posted to Inventory and credit to VAT payable account to create the liability. We have created the separate tax code and assigned with NVV with Non deductible check mark and posting Indicator 3. But this is not creating any additional accounting entry to crediting the VAP payable account,
Is there any way we can get accounting entry like: Debiting the Inventory account and crediting the VAT payable account???
Your valuable comments are welcome
Regards,
Devendran Dhanapal,
08080265922Hi Murali,
Thank you for your reply. I have included the NVV in the tax proceedure. But I didn't understand the role of VST here. Why should be activate the VST for non deductible. Already I have activated the NVV but not for VST and also the post indicator in VST shows 2. Is this VST plays any role in Non deductible tax??
Sorry to ask this question, It may seems to be stupid to you.
Thanks & Regards,
Devendran -
VAT and Budgeting - Deductible VAT
Hi all,
My customer needs to budget amounts with VAT (deductible+non deductible).
When availability control is performed, we need it to consider the deductible VAT as well.
Even if this is not the best bussiness practice, I need MM to recognize these taxes amounts as costs and to flow to PS as commitments or actuals and therefore, be subject to availability control.
Setting deductible tax as non-deductible in tax settings could be the easiest solution, but this does not meet my customer's requirement.
Would it be enough to solve this requirement not giving a separate G/L for the deductible VAT?
Can you share your thoughts on this matter with me?
Thanks so much
MartinaVirendra,
unfortunately, no cost planning takes place in my business process... so I guess overhead is not an option.
On the other hand, if it is possible to work in MM with gross values, it should also be possible in PS, don´t you think?
Thanks
Martina
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