5 Replies Latest reply: Aug 4, 2010 9:20 AM by Bijay Kumar Barik RSS

Tax code ?

MM team
Currently Being Moderated

hi

 

How to create tax codes for my company codes in IDES system ??

 

What are the necessary configuration has to be done for tax code configuration ???

 

 

Thanks

  • Re: Tax code ?
    Currently Being Moderated

    Go to FTXP:Description of tax code

     

    FV11: Enter condition types and maintain

    (JMOP,JECP,JSEP & seT off JMX1,JEX1,JHX1)

    Then

     

    SPRO>Tax on goods mvt>India>Basic Settings> Determination of excise duty > Condition based Excise Determination>

    Assign tax code to co-code.

     

    For details check this link and basically this setting is done by FI consultants:

     

    http://sapdocs.info/sap/fico/creating-tax-codes/

     

    Tax Code Step Wise Configuration

    • Re: Tax code ?
      MM team
      Currently Being Moderated

      hii

       

      in IDES i have to do tax code configuration without CIN transaction.

       

      For normal Implementation ,what are the necessary configuration has to be done for Tax codes ??

       

      Explain me in step by step ..

       

       

      Thanks

      • Re: Tax code ?
        Currently Being Moderated

        Remember this setting is basically done by FI consultant:

        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 etcu2026 But this is no longer applicable.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:

         

        u2022description of the tax code: please give a clear description

        u2022define the tax type: define whether the tax code is relevant for input or output tax

        u2022Indicator which determines that an error message should be issued if the tax amount is not correct. It it recommended to flag this.

        u2022Eu 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.

        u2022The 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.

        u2022Reporting 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.

        u2022NVV: The non deductible VAT is automatically added to the expenses account

        u2022NAV: Indicate for this key a separate account for the non deductible VAT

        u2022ESA: Output tax in case of Acquisition of EU goods

        u2022ESE: 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.

         

        Edited by: Afshad Irani on Aug 4, 2010 12:14 PM

      • Re: Tax code ?
        Jeyakanthan A
        Currently Being Moderated

        I belive entire tax configuration comes under CIN,You won't do tax configuration without CIN.Install SAP pack with CIN.

      • Re: Tax code ?
        Bijay Kumar Barik
        Currently Being Moderated

        Hi,

        For practice in sandbox without CIN, you can cretae tax code in FTXP by ntering County code and maintaion input tax is 0 & save.

         

        You can go for MIRO w.r.t. PO number.

         

        But now you can go for tax code with TAXINN procedure.

         

        For more check the link:

         

        http://wiki.sdn.sap.com/wiki/display/ERPFI/TaxCodesfor+India

         

        Regards,

         

        Biju K

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