Tax code Tax procedure

[Former Member]

what is taxcode and taxprocedure and also what is condition type hows the these three related?please explain with an example

[Former Member · Accepted solution]

tax code is used in Taxxinn procedure to map the taxes. if material is excisable then manufacturing company used to get the credit during good receipts.During good receipts we need to capture Part I & Part II. part I is for quantity & part II is for value. t.code to create tax code is FTXP. we can maintain input tax or output tax. input taxes is used during po creation & output tax is used used sales order creation. after creation of tax code we need to maintain condition records.t.code for condition records is FV11. FOR E.G tax code created is F4 (12.36% CENVAT + 0% vat).condition records would be

JMOP:12%

JMX1: 100% SET OFF

JCE1: 2%

JEX1: 100% SET OFF

JSEP : 2%

JHX1 : 100% SET OFF

Regards;

Rahul Bhagudia

[Former Member · Accepted solution]

thank you rahul

[Former Member · Accepted solution]

can u also explain for what this condition record for? we are giving the percentage for condition type to the corresponding taxcode at the time of taxcode creation then why this condition record?

[former_member191939]

Dear Vineeth,

Tax Code is just a two digit numeric or alphanumeric code through which we calculate taxes on materials,services etc.

A condition type is a representation in the system of some aspect of your daily pricing activities. For example, you can define a different condition type for each kind of price, discount or surcharge that occurs in your business transactions.

Tax Procedure is one where tax calculation procedure for country version and it supports condition-based excise determination is maintained(this depends for which country you are configuring the tax calculation procedure.)

In India there are two types of tax calculation procedure.

1.TAXINN-Condition Based

2.TAXINJ-Formula Based.

We create Tax code through FTXP and condition types are assigned to this tax code through T code FV11.

In Tax procedure these condition types are maintained which ultimately defines the calculation of the taxes based on your Tax code.

Configuration for Tax Code steps are

1.  Maintain the Tax Procedure   OBQ1

2. Maintain the Tax Processing in Accounting   OBCN

3. Change View of procedure & go to control  OBQ3

4. Maintain the Tax Code  FTXP

5. Changing in GL Master for assign TAX Code  FS00

6. GL assign to Maintain Configuration for automatic posting  OB40

7. Make your posting with Tax Code.

For Example if suppose i have to make a Tax code EM for Service tax12.36(Deductible).

Then first i will make Tax code through FTXP(Considering that condition types and calculation procedure has been configured already).

After that i will assign the condition types to tax code EM through T code FV11.

JSVD-12%

JEC3-2%

JES3-1%

This is how it works.

For more detail about tax code you can search forum where you will get many documents on this.

I am giving one link below kindly have a look.

Configuration of Tax Calculation Procedure TAXINN - India - SAP Library

Hope this will help you.

Regards

Eugene

[Former Member]

thank you ranu the link u given is very informative.