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Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
Beginners guide-to-sap-cin-taxation
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Beginners guide-to-sap-cin-taxation

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  • Hi Ramesh Gnapathi, plesae share configuration material for Sales Tax,Servie Tax,Excise dute and TDS Materials along with User Manual
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  • 1. Hand Book for SAP Taxation-India 1 Author : Sundar Krishnan Doc Code : SAP-Taxation-India Book For : SAP FI-MM-SD CIN Consultants Language : English SAP : ECC 6.0 Hand Book for SAP Taxation-India 2 AGENDA • OBJECTIVE • GLOSSARY • BACKGROUND – CIN • INTERFACE BETWEEN SAP AND CIN • INDIAN LOCALISATION COVERAGE • CONFIGURATION FI-CIN, MM-CIN, SD-CIN • PROCESSES IN SAP WITH CIN PROCUREMENT SALES FINANCE REPORTS OBJECTIVE To enlighten the participants on country version India (cin) and the various requirements which are to be completed under the Indian statute. How cin interfaces with sap sd, mm and fi processes and meets the report requirements . At the end of the presentation , each participant will have a fair knowledge of the requirements and interfaces of cin with sap.
  • 2. Hand Book for SAP Taxation-India 3 GLOSSARY CIN - COUNTRY VERSION INDIA INPUT TAX -Tax that is charged by the vendor. A claim for refund of the deductible portion of input tax can be submitted to the tax authorities OUTPUT TAX -Tax levied on customers at all levels of production and trade. Output tax represents a tax liability. SERVICE TAX - Tax levied on the customer on services specified by the Government. DEPOT - Depot is a plant where the material is stored and sold. There is no manufacturing activity at the depot. The depots when registered with the excise authorities can pass on the Modvat / cenvat benefits to the customer. EXCISE DUTY (BED) - A quantity-based tax which must be paid when a dutiable material is moved from a duty-free (bonded) location to a duty-paid (unbonded) location or the customer. Also known as excise tax. The excise duty is based on the quantity / Value of material moved. AED – Additional Excise duty is a duty which is calculated over and above the Excise Duty payable on the material. SED – Special Excise Duty is an additional duty levied on certain materials depending on the characteristics of the material. The statute specifies these materials. CVD – Countervailing duty is a levy charged on the imports of materials in lieu of excise duty. Hand Book for SAP Taxation-India 4 CENVAT – Central Value Added Tax. The tax is levied on the difference between the output and the input value. This is also referred as MODVAT. CESS – Cess is a tax imposed for a specific purpose under different acts with reference to certain goods. Cess is levied at the time of removal of goods from the factory. OCTROI – A levy payable on the material to the local authorities. NCCD – National calamity Contingent Duty. This tax is a special purpose tax levied for prescribed / scheduled product announced by the Finance ministry of India. This tax is cenvatable. Purchase Tax – This is a tax levied by some states when the manufacturer received a material from the out side state has to pay the purchase tax. Service Tax – The service provider who has the registration with the Central Excise can collect the tax for the service provided. This is also cenvatable and it can be utilized for payment excise duty or payment of service tax. VAT – Government of India introduce the Value Added Tax from April 2005. As the first stage, it is removing various sales tax slabs. It is the modified version of Local sales tax and it is cenvatable. Education Cess - Additional tax for the improvement of the regional Education introduced in India union budget in 2005. Higher Secondary Education Cess - Additional tax for the improvement of the regional Higher Education introduced in India union budget in 2007.
  • 3. Hand Book for SAP Taxation-India 5 ASSESSABLE VALUE - Denotes the value of goods that you have manufactured in-house at the price as assessed by an authorized auditor. SETOFF – A certain percentage of input tax which is refunded by the government to the manufacturer. This refund does not form part of material cost CHAPTER ID –All materials that are required for manufacturing and subsequently those which are manufactured, are classified under the Central Excise Law into chapters. These chapters are further subdivided into headings and subheadings, which together form the chapter ID. Chapter ID 721618.10 is an example. INTERSTATE TRANSACTIONS - A transaction where the goods / material are traded between two different states. CONCESSIONAL TAX FORMS – The Government announces tax concessions in excise and taxes on sales and purchase. This can be availed by submitting the forms prescribed by the Government. E.g ‘C’ form , ARE-1, ARE-3 , CT1, CT2 TDS - Tax deducted at source ( Withholding tax) is a form of indirect taxation deducted at the beginning of the payment flow. Generally, an amount is withheld and paid over or reported to the tax authorities on behalf of (as opposed to by) the person subject to tax, the exception being self- withholding tax. If a withholding tax exemption is available, withholding tax is not withheld. Hand Book for SAP Taxation-India 6 REGISTERS – The registers are the books prescribed having specific format under the statute e.g RG23A,RG23C,RG23D,RG1and PLA RETURNS – The prescribed forms having a specified format under the statute e.g.ER-1, 57AE,ANNUAL RETURN FOR TDS, Quarterly EFILE. BACKGROUND FIRST VERSION DEVELOPED IN 1996 IN RESPONSE TO NEEDS OF INDIAN CUSTOMERS STANDARD PRODUCT SUPPLIED BY SAP AS AN ADD-ON FROM 4.70 IT IS ADDED IN THE STANDARD PACK CONFIRMS TO SAP DEVELOPMENT STANDARD (LOOK AND FEEL ETC) SUPPORTED BY SAP DEVELOPMENT LAB AT BANGALORE ALL BUDGET 2009 CHANGES INCORPORATED
  • 4. Hand Book for SAP Taxation-India 7 CIN INTERFACE WITH SAP COUNTRY VERSION INDIA INSTALLATION COPIES THE FOLLOWING (UPTO 4.6C) (TCODE O035) STANDARD INDIA TEMPLATES TAX PROCEDURE (TAXINJ / TAXINN) CONDITIONS – EXCISE, TAXES ON SALES & PURCHASE, SERVICE TAX, CVD ETC TABLES , FUNCTION MODULES , NO.RANGE OBJECTS, CUSTOMER EXITS NOTE: DON’T RUN THIS O035 IN THE ROLEOUT PROJECTS. FOLLOW THE OSS NOTE:899096 &719154 Hand Book for SAP Taxation-India 8 INDIAN LOCALISATION COVERAGE COVERS THE FOLLOWING CENTRAL / LOCAL SALES TAX / VAT SALES TAX SETOFF PURCHASE TAX CONCESSIONAL TAX FORMS SERVICE TAX – INPUT/OUTPUT OCTROI BASIC / ADDITIONAL / SPECIAL EXCISE DUTY/ADDITIONAL DUTY ON CUSTOMS/CESS/EDUCATION CESS & NCCD/HIGHER EDUCATION CESS MAINTENANCE OF RATES ON VENDOR CLASS MAINTENANCE OF RATES AS PERCENTAGE & AMOUNT UTILISATION OF MODVAT MONTHLY PAYMENT CVD ( IMPORTS) SUB-CONTRACTING SUB-CONTRACTING CHALLANS RECONCILIATION OF QUANTITIES MAINTENANCE OF 57F4 REGISTER MODVAT UPDATING OF PART-I REGISTER FOR QUANTITY UPDATING OF PART-II REGISTER FOR VALUE UPDATING OF RG23D REGISTER FOR DEPOT PRINTING OF EXCISE REGISTERS PART-I / PART-II REGISTERS RG1 REGISTER RT12 / ER1 RETURN PLA REGISER FACILITY FOR DOWNLOAD
  • 5. Hand Book for SAP Taxation-India 9 EXTENDED WITHHOLDING TAX WITHHOLDING TAX ON DOWN PAYMENTS / INVOICES / PROVISIONS ACCUMULATIONS MULTIPLE TAX LINE ITEMS IN ONE INVOICE CALCULATION ALTERNATIVES (GROSS, NET, OFFSET) ROUNDING OPTIONS PAYMENT DUE DATES BY BUSINESS PLACE CHALLAN UPDATE AND ACCOUNT CLEARING SURCHARGE ON WITHHOLDING TAX ECS AND HECS CALCULATION. CERTIFICATE NUMBERING FOR DIFFERENT SECTIONS / BUSINESS PLACE CERTIFICATE PRINTING WITH CUSTOMISABLE LAYOUT QUATERLY RETURNS FOR VARIOUS SECTIONS OF INCOME TAX ACT PROVISIONAL ACCOUNTING FOR SERVICES. CHEQUE NO PRINTING WITH CERTIFICATE PAN NO OF VENDOR/CUSTOMER IN THE CERTIFICATE E-FILING. Hand Book for SAP Taxation-India 10 CONFIGURATION Country India Version [FI-CIN] Table of Content CONFIGURING TAX PROCEDURE TAXINN 1) Define Tax Procedures a) TAXINN b) TAXINJ – only procedure c) Assign Country to Calculation Procedure d) Activate Country Version India for Specific Fiscal Years e) Defining Tax Codes for Sales and Purchases 2) Define Access Sequence. a) JTAX b) JST1 3) Define Condition Types a) MM Excise condition types b) SD Condition Types c) Service Tax Condition Types 4) Checking and Changing [Account Key] Settings for Tax Processing 5) Define Tax Accounts
  • 6. Hand Book for SAP Taxation-India 11 Configuring Tax Procedures Tax on Sales/Purchases The taxes on sales/purchases include input tax, output tax, acquisition tax and additional taxes. In addition to tax codes, percentage rates and tax accounts, you have to specify whether the cash discount amount reduces the tax base amount, depending on the company code. This reduction is, for example, possible in Belgium but not in Germany. The following sections describe the specifications you must make for calculating taxes on sales/purchases. 1. Check Calculation Procedure /Defining Tax Procedures Transaction code OBQ3 IMG menu Financial Accounting (New) – Financial Accounting Global Settings (New) → Tax on Sales/Purchases → Basic Settings → Check Calculation Procedure In this activity, you can check and, if necessary, change existing procedures for tax calculation. Standard settings Calculation procedures containing the necessary specifications for the calculation and posting of taxes on sales/purchases have already been defined in the standard SAP system for certain countries. Every calculation procedure groups several tax types together into a condition type (for example, output tax or input tax) in the calculation procedure, and determines calculation rules for it. Hand Book for SAP Taxation-India 12 The calculation procedure determines for which amount the individual condition types are to be calculated. This can be the base amount (total of the expense items and the revenue items) or a subtotal. The entry in column FrmLvl, determines for which amount tax is calculated. Note In this activity, the condition types for the check and the possible change provided in the standard system are also displayed. Here, for example, the condition calculation rule, or for which base amount the tax is calculated is determined (= condition type). Recommendation If possible, do not change the condition types and calculation procedures provided in the standard system. Only check the standard condition types and calculation procedures regarding whether you can use them for your requirements. If necessary, make changes. Activities If you cannot use the standard settings, change the condition types and calculation procedures delivered to meet your requirements. Double Click on Define Procedures
  • 7. Hand Book for SAP Taxation-India 13 Default values : • Usage : Usage of the condition table Determines for which area the condition is used (for example, pricing or output). • Application Subdivides the usage of a condition (for example, pricing) for use in different application areas (for example, sales & distribution or purchasing). Hand Book for SAP Taxation-India 14 Procedure (Pricing, Output Control, Acct. Det., Costing,...) Specifies the conditions that are allowed for a document and defines the sequence in which they are used. Example Procedures are used, for example, in the following applications: • Pricing in sales and distribution • Applying overhead in Product Costing (costing sheets) and for CO internal orders • Calculating accrued costs in Profitability Analysis • Output control (printed confirmations, EDI messages, electronic mail) • Account determination • Calculating taxes on sales/purchases • Calculating accruals in Cost Center Accounting • Pricing for resource planning
  • 8. Hand Book for SAP Taxation-India 15 a) TAXINJ PROCEDURE • Select the Procedure TAXINJ • Click on Control Data in Dialog Structure Window Hand Book for SAP Taxation-India 16 TAXINJ PROCEDURE CONTROL VALUES (PENDING)
  • 9. Hand Book for SAP Taxation-India 17 b) TAXINN PROCEDURE Hand Book for SAP Taxation-India 18 TAXINN PROCEDURE CONTROL VALUES (PENDING) Field Explanations: Step number Number that determines the sequence of the conditions within a procedure. Condition counter Access number of the conditions within a step in the pricing procedure. During automatic pricing, the system takes into account the sequence specified by the counter. Condition Type The condition type is used for different functions. In pricing, for example, the condition type lets you differentiate between different kinds of discount; in output determination, between different output types such as order confirmation or delivery note; in batch determination, between different strategy types. Description From Ref. Step for Percentage Conditions Condition step, the value of which is the basis for percentage surcharges. If you specify a to reference step at the same time, the condition values of the two steps specified and the conditions values of the steps in between are totalled. In this case, percentage surcharges are calculated on the basis of the total.
  • 10. Hand Book for SAP Taxation-India 19 Example: Level CType Description FromSt ToSt ActKy 10 A-B1 Wages 20 A-B2 Salaries 30 A-B3 Overtime/Wages 40 A-Z1 Vacation bonus 10 30 E11 The surcharge for step 40 is added to the total of steps 10 to 30. To reference step (for percentages) Condition step up to which the condition values of the previous steps are totalled. Percentage surcharges are calculated on the basis of the total. If you specify a from reference step at the same time, the condition values of the two steps specified and the condition values of the steps in between are totaled. Example: Step CType Description FromSt ToStep AcctKey 10 A-B1 Wages 20 A-B2 Salaries 30 A-B3 Overtime/Wages 40 A-Z1 Vacation bonus 10 30 E11 The surcharge for step 40 is added to the total of steps 10 to 30. Hand Book for SAP Taxation-India 20 Condition determined manually Use Conditions, that are given this indicator in the pricing procedure, are only included in determination (price determination, output determination, batch determination) either if they are entered manually, for example, on the condition overview screen in Pricing or if they are transferred from an external process, such as costing. Condition is mandatory Indicates whether the condition is mandatory when the system carries out pricing using this pricing procedure. Example If, for example, you always want to include a tax condition (VAT or sales tax) during pricing, you can set this indicator for the appropriate tax condition type. Definition: pricing procedure Sales and Distribution (SD) A rule type for pricing. The pricing procedure defines the conditions permitted for a document and the sequence in which the system takes these conditions into account during pricing. A standard pricing procedure is defined in the standard SAP system. It contains conditions most commonly used. These include material prices, discounts, and surcharges, such as freight, or tax.
  • 11. Hand Book for SAP Taxation-India 21 Profit Center Accounting (EC-PCA) A pricing procedure defines how values posted in the SAP system are calculated. A pricing procedure can consist of the following types of rows: • Base rows, which contain the amount or quantity to which overhead is applied • Calculation rows, which contain a percentage rate to be applied to the base lines • Totals rows, which contain a sum of base amounts and calculated amounts Pricing procedures are used in Profit Center Accounting to calculate transfer prices. Condition is used for statistics This indicator causes a surchage or discount to be set in the document statistically (that is, without altering the value). Print ID for condition lines Controls issue of condition lines when printing documents such as order confirmations or invoices. Use In releases previous to 4.0, the following print indicators are available : • ' ' : Condition line is not printed • 'X' : Condition line is printed at item level Hand Book for SAP Taxation-India 22 • 'S' : Condition line is printed in totals block The following standard logic is set out for these printing indicators: o Item POS of the last condition line is determined with 'X'. o All condition lines that contain an item smaller than POS in the pricing procedure are only printed if print indicators 'X' or 'S' are set. o All condition lines that contain an item larger than POS in the pricing procedure, that come before the first tax condition line and which have a non-statistical VAT condition, receive printing indicator 'S'. The same applies for condition lines that contain an item larger than POS in the pricing procedure, that come after the first tax condition line and an active non-statistical VAT condition. o Condition lines that represent a tax condition type are always printed in totals blocks with print indicator 'S' (set internally or externally). o Condition lines that represent a condition type that is not a tax condition type are only printed with print indicator 'S' (set externally or internally) if the condition value of the condition line is not zero. Condition lines that do not represent a condition type (i.e. subtotals) are only printed with print indicator 'S' or 'X' (set externally or internally) if the condition value of the condition line is different from the condition value of the previous condition line in the pricing procedure. To provide a better overview of this process, 8 more print parameters are available as of Release 4.0. These print indicators cannot, however be mixed with the three previous print indicators ' ', 'X' and 'S' in the pricing procedure. This means that the new indicators are only taken into account if a no condition lines in the pricing procedure contain printing indicators 'X' or 'S'.
  • 12. Hand Book for SAP Taxation-India 23 The new printing indicators have the following settings, and corresponding influence on processing. o 'A' : in total: general o 'B' : in total: if value <> zero o 'C' : in total: if value <> value of predecessor o 'D' : in total: if value <> zero and value <> value of predecessor o 'a' : at item : general o 'b' : at item : if value <> zero o 'c' : at item : if value <> value of predecessor o 'd' : at item : if value <> zero and value <> value of predecessor Condition subtotal Controls whether and in which fields condition amounts or subtotals (for example, a customer discount or the cost of a material) are stored. Use If the same fields are used to store different condition amounts, the system totals the individual amounts. Example These condition amounts or subtotals are used as a starting point for further calculations. You may, for example, want a subtotal of all the discounts included in the pricing of a sales order. Hand Book for SAP Taxation-India 24 Requirement If the requirement is fulfilled (SY-SUBRC = 0), then output determination also takes into consideration output type or the access sequence, for which the requirement has been specified. Examples A possible requirement would be, for example, that a difference should be made between document currency and local currency . Definition: message determination Message Control (CA-GTF-BS-MC) An object that checks whether the application data (for example, data determined in Customizing) corresponds to the condition records. If this is the case, one or several messages are "found," which can then be processed (for example, sent electronically). The condition records are searched for according to a predefined hierarchy in message determination. Condition formula for alternative calculation type Alternative formula to the formula in the standard system that determines a condition. Alternative formula for condition base value Formula for determining the condition basis as an alternative to the standard.
  • 13. Hand Book for SAP Taxation-India 25 Example An absolute header discount is, for example, distributed in the standard system according to the cumulative value of the items. If the system, however, distributes the absolute header discount according to volume, a header discount of $30 results in the following discounts: Item Value Volume Discount Stand. disc. Volume disc. 1 $1000 2 cbm $20 $10 2 $500 4 cbm $10 $20 Account key Key that identifies different types of G/L account. The account key enables the system to post amounts to certain types of revenue account. For example, the system can post freight charges (generated by the freight pricing condition) to the relevant freight revenue account. Account key - accruals / provisions Key which identifies various types of G/L accounts for accruals or provisions. With the aid of the account key, the system can post amounts to certain types of accruals accounts. For example, rebate accruals which are calculated from pricing conditions can be posted to the corresponding account for rebate accruals. Hand Book for SAP Taxation-India 26 c) Assigning Country to Calculation Procedure → → → → Country Key The country key contains information which the system uses to check entries such as the length of the postal code or bank account number. The two-character ISO code in accordance with ISO 3166, which is delivered by SAP as a default, is usually used. It could also be the vehicle license plate country-code or a typical country key, for example, in Germany the Federal statistics office key. The country keys are determined at system installation in the global settings. Since the country key does not have to correspond to the ISO code in all installations, programs that differ according to certain values of the country key cannot query the country key T005-LAND1, but have to program based on the ISO code T005 INTCA.
  • 14. Hand Book for SAP Taxation-India 27 Procedure (Pricing, Output Control, Acct. Det., Costing,...) Specifies the conditions that are allowed for a document and defines the sequence in which they are used. d) Activating Country Version India for Specific Fiscal Years Transaction code SPRO IMG menu Financial Accounting (New) → Financial Accounting Global Settings (New) → Tax on Sales/Purchases → Basic Settings → India → Activate Country Version India for Specific Fiscal Years Component in ACC Interface This field defines an SAP interface component that you can activate, deactivate, or delete in the accounting interface. To-year Fiscal year up to and including which the transaction applies. Hand Book for SAP Taxation-India 28 Indicator: Active Use Indicates whether a change status is active or not. If you mark this indicator, the engineering change is relevant for requirements planning and delivery. Procedure If you enter both a delivery date and serial number here, the system automatically sets this indicator to "active". However, you may want to enter several material numbers for a certain delivery date, but decide later which serial numbers to activate. In this case, simply unmark the indicator.
  • 15. Hand Book for SAP Taxation-India 29 e) Defining Tax Codes for Sales and Purchases Transaction code SPRO IMG menu Financial Accounting (New) → Financial Accounting Global Settings (New) → Tax on Sales/Purchases → Calculation → Define Tax Codes for Sales and Purchases Define Tax Codes for Sales and Purchases Use You have to define a separate tax on sales/purchases code for each country in which one of your company codes is located. Each code contains one or more tax rates for the different tax types. If you have to report tax-exempt or non-taxable sales to the tax authorities, you need to define a tax rate with the value 0. Note Do not delete or change any taxes on sales/purchases codes and their definitions as long as items with these codes exist in the system. Otherwise, the SAP system displays the tax amounts with incorrect tax rates in the corresponding reports and determines incorrect amounts during a tax adjustment for payment transactions. Standard settings SAP supplies a tax calculation procedure for each country. The procedure comprises a list of all common tax types with rules for tax calculation. In addition, example tax codes are defined for some countries. Activities Hand Book for SAP Taxation-India 30 1. Check the standard tax codes for your country. Add further tax codes, if necessary. 2. Ensure that tax accounts are defined for the automatic posting of taxes. Notes on transporting tax codes When tax codes are transported, the tax rates of the tax codes are transported using auxiliary table T007V. Logical transport object FTXP is used to transport the definition data of the tax code from table T007A and the language-dependent name to table T007S. The tax accounts for the tax codes (table T030K) are not transported. The internal jurisdiction codes are also not transported. The transport of tax codes between systems or clients consists of two steps: 1. Step: Export tax codes from source system or source client 2. Step: Import tax codes into target system or target client Export 1. In the source system or client, in Customizing for the Financial Accounting Basic Settings, choose Tax on Sales/Purchases -> Calculation -> Define Tax on Sales and Purchases Code. 2. Choose Tax Code -> Transport -> Export. 3. Assign the export to the relevant transport request and make a note of the request number. 4. Select and save the tax codes to be transported. 5. Make sure that the selected tax codes have the transport number in table T007V. To check the table, in the SAP menu choose Tools -> ABAP Workbench -> Overview -> Data Browser. Enter the table name. The tax codes are in the MWSKZ fields, the tax jurisdiction codes in the TXJCD fields. 6. Arrange the transport of the request to the target system.
  • 16. Hand Book for SAP Taxation-India 31 To transport the request, in the SAP menu choose Tools -> ABAP Workbench -> Overview -> Workbench Organizer -> Environment -> Customizing Organizer. Import 1. Make sure that the transported tax codes are recorded in table T007V of the target system or target client. 2. In the source system or client, in Customizing for the Financial Accounting Basic Settings, choose Tax on Sales/Purchases -> Calculation -> Define Tax on Sales and Purchases Code. 3. The tax codes should have been created in the target system without a tax percentage rate by the import. Otherwise you can do this manually: In the target system, create the tax codes that do not exist there. Create the tax codes completely, but without tax percentage rates. If you use internal systems in company codes in the USA or Canada, the relevant tax jurisdiction codes should also exist. You make the settings for the tax jurisdiction code in Customizing for Financial Accounting Basic Settings under Tax on Sales and Purchases -> Basic Settings -> Define Tax Jurisdiction Codes. 4. Choose Tax Code -> Transport -> Import. 5. Check the proposed values for the transport request and country. 6. Run the import. Hand Book for SAP Taxation-India 32 Choose Country IN. Tax codes as per Client / customer requirements be created. One for Input nil tax code and another for Out put nil tax code. Note: Don’t maintain any % in any condition here.
  • 17. Hand Book for SAP Taxation-India 33 Hand Book for SAP Taxation-India 34 Some Example Tax codes : ! " # $ % & $ ' ! ( ! ) * + )! ! )) $ ) $ ) ! + ), - + ). / 01 * 2 3 * )4 / 01 * 2 3 * )( + + + / 5 2 6 7 5 2 6 7 5 2 6 7 ! ! 5 2 6 7 5 2 6 7
  • 18. Hand Book for SAP Taxation-India 35 + / 8 6 5 2 6 7 9 + 59 :2 6 7 " / 01 * 2 # + 59 ::2 6 7 ; 6 5; 2 6 7 : + 9( 5:2 6 7 < 5 2 6 7 . 9 8 9 8 !$ = : 9 > 5 2 6 7 = : 9 > 5 2 6 7 = : $ 9 > 5 2 6 7 =$ : 9 > 5 2 6 7 =- : 9 > 5 2 6 7 = : $ 9 > 5 2 6 7 = : 9 > 5 2 6 7 = : 9 > 5 2 6 7 =9 : $ 9 > 5 2 6 7 =: : 9 > 5 2 6 7 =? : 9 > 5 2 6 7 =% : $ 9 > 5 2 6 7 = : 9 >! 5 2 6 7 = : 9 >! 5 2 6 7 =& : $ 9 >! 5 2 6 7 =' : 9 > 5 2 6 7 = : 9 > 5 2 6 7 =, : $ 9 > 5 2 6 7 Hand Book for SAP Taxation-India 36 @ : 9 > 5" 2 6 7 @ : 9 > 5" 2 6 7 @ : $ 9 > 5" 2 6 7 @ $ : 9 > 5; 2 6 7 @ : 9 > @ : 9 > @ 9 : $ 9 > @ : : 6 < : 9 > < # 5 7 < : 9 > # 5 7 < : 9 > < # <! : 9 > # < : $ 9 > < # < : $ 9 > # <$ : 9 > < # <- : 9 > # < : 9 > < # <A : 9 > # < : $ 9 > < # <) : $ 9 > # < : 9 > < # < : 9 > # <9 : 9 > < #
  • 19. Hand Book for SAP Taxation-India 37 2. Defining /Maintaining Access Sequence Settings Transaction code OBQ2 / OBYZ IMG menu Financial Accounting (New) – Financial Accounting Global Settings (New) → Tax on Sales/Purchases → Basic Settings → Check Calculation Procedure Double Click on Access Sequences When we use OBYZ Hand Book for SAP Taxation-India 38 DOUBLE CLICK ON ACCESS SEQUENCES Enter Caution: The table is cross-client Message no. TB113
  • 20. Hand Book for SAP Taxation-India 39 Diagnosis You are in the process of maintaining a cross-client table. You are using the standard table maintenance screen here, which is frequently used to maintain client-specific Customizing entries. This message serves to warn you that each change you make will have an effect on all other clients in the system. System Response You have the authorization required for cross-client maintenance. Procedure Think carefully about the effect of your changes. Due to logical dependencies between client-specific Customizing and applications data on the one hand and cross-client Customizing data on the other hand, changing or deleting cross-client data could result in inconsistencies. Therefore such changes should be carefully planned and coordinated, taking all the clients in the system into consideration. Hand Book for SAP Taxation-India 40 Access sequence With the access sequence you define • the condition tables used to access the condition records • the sequence of the condition tables • which field contents are the criteria for reading the tables • Description
  • 21. Hand Book for SAP Taxation-India 41 Select the Access Sequence and double click on Accesses in Dialog structure window. JTAX – ACCESS SEQUENCE Hand Book for SAP Taxation-India 42 Access sequence - Access number Indicates the number of the access within the access sequence. Condition table A combination of fields that defines the key of a condition record. For each condition type in a pricing procedure, you define an access sequence. The access sequence tells the system where to look for relevant condition records for a particular condition type (a rebate for a specific customer, for example). Each access in the access sequence refers to a condition table. The fields defined in the table (the key) help the system to locate valid condition records. Procedure When you create a condition table, you specify one or more target fields as the table key. You must also tell the system where to find the value for each target field. You do this by specifying source fields. The source fields are usually the same as the target fields, but they can differ. For example,
  • 22. Hand Book for SAP Taxation-India 43 if the target field "Customer" is part of the key, you can specify that the system uses "Ship-to party" as the source field and takes the value from there. Explanatory short text This text is displayed when you generate reports or call documentation, for example Requirement If the requirement is fulfilled (SY-SUBRC = 0), then output determination also takes into consideration output type or the access sequence, for which the requirement has been specified. Examples A possible requirement would be, for example, that a difference should be made between document currency and local currency . Indicator: Exclusive condition access Controls whether the system stops searching for a record after the first successful access for a condition type within an access sequence. Hand Book for SAP Taxation-India 44 Select the Access Number and Double click on Fields in Dialog Structure window.
  • 23. Hand Book for SAP Taxation-India 45 Hand Book for SAP Taxation-India 46
  • 24. Hand Book for SAP Taxation-India 47 JST1 – ACCESS SEQUENCE [FIELD EXPLANATIONS REMAIN SAME] Hand Book for SAP Taxation-India 48
  • 25. Hand Book for SAP Taxation-India 49 Hand Book for SAP Taxation-India 50 Field for condition table Name of the field from the condition record. Definition: condition record Sales and Distribution (SD) Data record with input and output values for a task. The condition record is created or changed with condition record maintenance and selected in the determination process. The output values are dependent on chosen input values (for example, customer, customer group, product) and are valid for a certain time period. A condition record can, for example, contain a specific free-goods discount for a particular product quantity, or a specific discount for a particular business partner. Message Control (CA-GTF-BS-MC) A data record whose key fields display the requirement (condition) under which the message is found. The other fields describe the message. Therefore, if one of the data records transferred by the application corresponds to these key fields, the message is found and can be processed (for example, in print form or as an electronic message). Definition
  • 26. Hand Book for SAP Taxation-India 51 The symbols are used to display how the document data is used in the condition access and how the data determined in the access is transferred back to the document. Arrows indicate the direction of the data transfer, the equal sign stands for an access with a direct value. The tools indicate that the data transfer must be ensured when setting up pricing by adapting the system using formulas and requirements. The green LED indicates automatic processing and a red LED marks a line, where data for correct processing is missing. Table name of the document structure Specifies an internal table in which condition information about documents is stored. Table field for document structure Determines the data dictionary characteristics for new fields in data dictionary structures. Use Reference fields are necessary for the generation of data dictionary structures for conditions and information structures. A reference structure and a reference field must always be entered. Long Field Label Definition One of the following: - Short field label - Medium field label - Long field label Can be assigned as prefixed text to a screen field referring to the ABAP Hand Book for SAP Taxation-India 52 Dictonary. The text is displayed on the screen in the logon language of the user (if the text was translated into this language). A heading can be defined to output the field values in lists. This heading is automatically included in the list header row, in the logon language. Spec. Val. Source Value which the system automatically assigns to a field when it accesses the condition record. Dependencies A field can contain either the value of the source field or the value of a constant (a direct value). Characteristic: Initial value allowed The initial inicator has two functions within Customizing for access sequences. Firstly, it controls that the system does not access the condition if the field in the document header/item is blank or 0. Secondly, during automatic return transfer of data that were determined in the access, it allows an initial value to be returned. Processing type in access The processing type determines how the corresponding field is used for the condition access. A field can be marked as belonging to the fixed/free key part or else as not relevant for the access. Fields that are defined as data fields for the definition of condition tables are automatically marked with an access type. Dependencies The processing type influences processing for fields in an access
  • 27. Hand Book for SAP Taxation-India 53 Characteristic Values Definition This valuation describes a priority for the characteristics which can be used as fields when you create condition tables or document fields for pricing. You can enter values from 01 (very high) to 99 (very low). The valuation controls how the system selects from the condition records determined from an access with a free key part. The more fields that are filled with a high priority in the key of a condition record, the more likely it is to be used for the document. If no two fields have the same value, then the access is guaranteed to determine exactly one condition record. 3. Defining condition Types Transaction code OBQ1 IMG menu Financial Accounting (New) – Financial Accounting Global Settings (New) → Tax on Sales/Purchases → Basic Settings → Check Calculation Procedure Double click on Define Condition Types Hand Book for SAP Taxation-India 54 Condition Type The condition type is used for different functions. In pricing, for example, the condition type lets you differentiate between different kinds of discount; in output determination, between different output types such as order confirmation or delivery note; in batch determination, between different strategy types Condition type Name Condition Class Description Enter text here that best describes the module. Calculation type Description Enter text here that best describes the module.
  • 28. Hand Book for SAP Taxation-India 55 MM Excise Condition Types [ Access Sequence : JTAX] 1. JAIP IN AED inventory % 2. JAIQ IN AED inventory Qty 3. JAOP IN: AED setoff % 4. JAOQ IN: AED setoff Qty 5. JAX1 IN: A/P AED setoff 6. JAX2 IN: A/P AED inventor 7. JEC1 Inp Ecess Cr % 8. JEC2 Inp Ecess w/o Cr % 9. JEX1 Inp Ecess Cr Tot 10. JEX2 Inp Ecess w/o Cr Tot 11. JHX1 Inp SEcess Cr Tot 12. JHX2 Inp SEcess w/o Cr To 13. JMIP Inp BED w/o Cr % 14. JMIQ IN: BED inventory Qt 15. JMOP Inp BED Cr % 16. JMOQ IN: BED setoff Qty 17. JMX1 Inp BED Cr Total 18. JMX2 IN: A/P BED inventor 19. JSEI Inp SEcess w/o Cr % 20. JSEP Inp SEcess Cr % 21. JSIP IN SED inventory % 22. JSIQ IN SED inventory Qty 23. JSOP IN: SED setoff % 24. JSOQ IN: SED setoff Qty 25. JSX1 IN: A/P SED setoff 26. JSX2 IN: A/P SED inventor Hand Book for SAP Taxation-India 56 27. JNIP Inp NCCD w/o Cr % 28. JNOP Inp NCCD Cr % 29. JNX1 Inp NCCD Cr Total 30. JNX2 Inp NCCD w/o Cr Tot To see the Details of each condition Type OBQ1: Select the condition type and click on details icon on application tool bar.
  • 29. Hand Book for SAP Taxation-India 57 1. JAIP IN AED inventory % Hand Book for SAP Taxation-India 58 2. JAIQ IN AED inventory Qty
  • 30. Hand Book for SAP Taxation-India 59 3. JAOP IN: AED setoff % Hand Book for SAP Taxation-India 60 4. JAOQ IN: AED setoff Qty
  • 31. Hand Book for SAP Taxation-India 61 5. JAX1 IN: A/P AED setoff Hand Book for SAP Taxation-India 62 6. JAX2 IN: A/P AED inventor
  • 32. Hand Book for SAP Taxation-India 63 7. JEC1 Inp Ecess Cr % Hand Book for SAP Taxation-India 64 8. JEC2 Inp Ecess w/o Cr %
  • 33. Hand Book for SAP Taxation-India 65 9. JEX1 Inp Ecess Cr Tot Hand Book for SAP Taxation-India 66 10. JEX2 Inp Ecess w/o Cr Tot
  • 34. Hand Book for SAP Taxation-India 67 11. JHX1 Inp SEcess Cr Tot Hand Book for SAP Taxation-India 68 12. JHX2 Inp SEcess w/o Cr To
  • 35. Hand Book for SAP Taxation-India 69 13. JMIP Inp BED w/o Cr % Hand Book for SAP Taxation-India 70 14. JMIQ IN: BED inventory Qt
  • 36. Hand Book for SAP Taxation-India 71 15. JMOP Inp BED Cr % Hand Book for SAP Taxation-India 72 16. JMOQ IN: BED setoff Qty
  • 37. Hand Book for SAP Taxation-India 73 17. JMX1 Inp BED Cr Total Hand Book for SAP Taxation-India 74 18. JMX2 IN: A/P BED inventor
  • 38. Hand Book for SAP Taxation-India 75 19. JSEI Inp SEcess w/o Cr % Hand Book for SAP Taxation-India 76 20. JSEP Inp SEcess Cr %
  • 39. Hand Book for SAP Taxation-India 77 21. JSIP IN SED inventory % Hand Book for SAP Taxation-India 78 22. JSIQ IN SED inventory Qty
  • 40. Hand Book for SAP Taxation-India 79 23. JSOP IN: SED setoff % Hand Book for SAP Taxation-India 80 24. JSOQ IN: SED setoff Qty
  • 41. Hand Book for SAP Taxation-India 81 25. JSX1 IN: A/P SED setoff Hand Book for SAP Taxation-India 82 26. JSX2 IN: A/P SED inventor
  • 42. Hand Book for SAP Taxation-India 83 27. JNIP Inp NCCD w/o Cr % Hand Book for SAP Taxation-India 84 28. JNOP Inp NCCD Cr %
  • 43. Hand Book for SAP Taxation-India 85 29. JNX1 Inp NCCD Cr Total Hand Book for SAP Taxation-India 86 30. JNX2 Inp NCCD w/o Cr Tot
  • 44. Hand Book for SAP Taxation-India 87 Screen field values: [ Explanation holds good for all categories of Conditions Types] Condition Type The condition type is used for different functions. In pricing, for example, the condition type lets you differentiate between different kinds of discount; in output determination, between different output types such as order confirmation or delivery note; in batch determination, between different strategy types. Name Access sequence With the access sequence you define • the condition tables used to access the condition records • the sequence of the condition tables • which field contents are the criteria for reading the tables Condition class Preliminary structuring of condition types e.g. in surchages and discounts or prices. Use Allows standardised processing of individual condition classes within the system. Hand Book for SAP Taxation-India 88 Plus/minus sign of the condition amount Controls whether the condition results in an amount that is negative (a discount), positive (a surcharge), or whether both positive and negative amounts are possible. Procedure If the condition amount can be either positive or negative, leave the field blank. Otherwise, enter one of the indicators that specify plus or minus. Calculation type for condition Determines how the system calculates prices, discounts, or surcharges in a condition. For example, the system can calculate a price as a fixed amount or as a percentage based on quantity, volume, or weight. The calculation type can be set when generating new condition records. If this does not happen, the calculation type maintained here is valid for the condition record.
  • 45. Hand Book for SAP Taxation-India 89 Condition category (examples: tax, freight, price, cost) A classification of conditions according to pre-defined categories (for example, all conditions that relate to freight costs). Rounding rule The rule that determines how the system rounds off condition values during pricing. The last digit will be rounded. Example • In the standard rounding rule '_', values are rounded off according to business standards: 10.454 -> 10.45 DEM 10.455 -> 10.46 DEM • In rounding rule 'A', values are always rounded up: 10.459 -> 10.46 DEM 10.451 -> 10.46 DEM • In rounding rule 'B', values are always rounded down: 1045.9 -> 1045 LIT 1045.1 -> 1045 LIT In this example, the currency of the condition rate is Italian Lira. The Italian Lira does not have any places after the point. Structure condition Hand Book for SAP Taxation-India 90 controls whether the condition type should be a duplicated condition or a cumulated condition. This control is only helpful when you use bill of materials or configurable materials. A duplicated condition is duplicated into all assigned items. A cumulated condition contains the net value of all assigned items. Group condition Indicates whether the system calculates the basis for the scale value from more than one item in the document. Use For a group condition to be effective, the items must belong to a group. You can freely define the group to meet the needs of your own organization. The items can, for example, all belong to the same material group. Example A sales order contains two items. Both items belong to the material group 01. Material Quantity Material group A 150 01 B 100 01 The group condition indicator is set in the definition of the condition type for material group discounts. The condition record for material group 01 includes the following pricing scale: Scale quantity Discount from 1 pc -1%
  • 46. Hand Book for SAP Taxation-India 91 from 200 pc -2% Neither item alone qualifies for the 2% discount. However, when the items are combined as part of a group condition, the combined quantity creates a basis of 250 pieces. This basis then exceeds the scale value of 200 pieces, which is necessary to qualify for the higher discount. Routine number for creating group key Identifies a routine that calculates the basis for the scale value when a group condition occurs in pricing. Example You can specify a routine, for example, that totals the value of all items in a document in order to determine the basis for a discount. Rounding difference comparison Indicator that controls whether rounding difference is settled for group conditions with a group key routine. If the indicator is set, the system compares the condition value at header level with the total of the condition values at item level. The difference is then added to the largest item. Making manual entries Indicator which controls the priority within a condition type between a condition entered manually and a condition automatically determined by the system. &WHAT_TO_DO? Make the following entries according to your requirements: _: No limitations Hand Book for SAP Taxation-India 92 A: Freely definable B: The automatic entry has priority. If a condition record exists, the condition cannot be entered manually. C: The manual entry has priority. When you enter the condition manually, the system does not check whether a condition record exists. D: Cannot be processed manually Condition applies to header If this condition is marked as a header condition, it is possible to enter the condition type in the header condition screen. Checks for changing the condition manually are unaffected by this. Condition rate of change for amount/percentage Specifies whether the amout or percentage for the condition type can be changed during document processing. Scope for changing conversion factors Specifies whether the conversion factors for the units of measure in conditions of this type can be changed during document processing. Condition applies to items Procedure Mark this field if the conditions of this type are allowed to be entered in the document items. The condition is then only valid for the particular item in which it is entered.
  • 47. Hand Book for SAP Taxation-India 93 Delete the scope for changing rate Indicator that controls whether the condition type may be deleted from the document. Scope for changing the value Specifies whether the value of the condition type can be changed during document processing. Proposed starting date for the rebate validity period Specifies the beginning validity date that the system automatically proposes when you create a rebate agreement of this type. Example You can, for example, specify that the system proposes the first day of the current week, month, or year. Procedure If you want the system to propose the current date, leave the field blank. Otherwise, enter one of the values predefined for your system. Sales and Distribution: Pricing Procedure in Pricing Determines which condition types can be used in a document and in which sequence they appear. The system uses the pricing procedure that you enter here to control the use of condition supplements in records of this condition type. You can apply the discounts that are defined in the pricing procedure as condition supplements during pricing. Hand Book for SAP Taxation-India 94 Procedure Enter one of the predefined pricing procedures that control condition supplements. If you leave the field blank, the condition supplement function in the screens where you maintain the corresponding condition records is inactive. Example You define a pricing procedure to control a condition supplement for a material price. The condition supplement specifies discounts that you want the system to apply every time the system accesses a material price condition record. When you define the condition type for a material price, you enter the pricing procedure that you defined for the condition supplement. Date proposed as valid-to date Proposed value for how long a condition should remain valid. The system proposes this value for the Valid to date when you create condition records. Condition records should be deleted from the database You can use this indicator to control how the system operates when deleting condition records. You have the following options: • SPACE: You can set an indicator so that the condition record is no longer used in pricing. The condition record is then archived in the archiving run. This is how things happened before Release 4.6A.
  • 48. Hand Book for SAP Taxation-India 95 • A: You can delete the condition records from the database. You then receive a popup, asking whether the condition record should actually be deleted or whether the deletion indicator should simply be set. • B: You delete the condition records from the database. You only receive a popup if there are condition supplements available. • Reference condition type • A condition type which can be used as a reference so that you only have to create condition records once for condition types that are very similar. • Use • You may need to use different condition types for the same condition. These can differ in the access sequence, the description, the reference stage of the pricing procedure or the calculation type, for example. • You can enter the condition type under which the condition records are created. • Example • Condition type MWSI only differs with condition type MWST in the calculation type. For this reason an entry is made in field ReferenceCondTypeMWST for condition type MWSI . Now, condition records only need be created for condition type MWST and not additionally for MWSI. • Dependencies • Field RefApplication is used to refer to condition records from other applications. Update condition index Specifies whether the system updates one or more condition indices when maintaining condition records. This makes it possible to list or maintain condition records independently of condition type and condition table, for example. Dependencies Hand Book for SAP Taxation-India 96 For source determination for services, service conditions for the vendor are taken into consideration in the same way as info records, if the flag Condition Index is set for condition type Total Price (PRS). Reference application Application, that can be used to refer to condition records from other applications. You only have to create condition records once for condition types that are very similar. You can also refer to condition records from other applications. You will find further information on the ReferencCondType field in the documentation. Scale basis indicator Determines how the system interprets a pricing scale in a condition. For example, the scale can be based on quantity, weight, or volume. Formula for scale base value Formula for determining the scale base value. You can use this formula to specify calculation methods that are not provided in the standard system. Checking rule for scale rates Indicates whether the scale rates must be entered in ascending or descending order.
  • 49. Hand Book for SAP Taxation-India 97 Scale unit Unit of measure that the system uses to determine scales when you use group conditions. The system proposes the unit of measure when you maintain records for group conditions that are either weight or volume dependent. Scale Type Indicator that controls the validity of the scale value or percentage: • From a certain quantity or value (base scale) • Up to a certain quantity or value (to-scale) Alternatively, it is possible to work with interval scales. Interval scales must be stored in the condition type, that is, the scale type "interval scale" cannot be changed in the condition record. The reason for this is technical restrictions resulting from the programming within pricing. Indicator: Currency Translation after Multiplication Controls the currency conversion where the currency in the condition record varies with the document currency. To calculate a condition value in a document, the system multiplies the amount that results from the condition record by the item quantity. This indicator controls whether the system carries out currency conversion before or after the multiplication takes place. Procedure Hand Book for SAP Taxation-India 98 If you mark the field, the system converts the condition value into the document currency after multiplication. If you leave the field blank, the system converts the condition value into the document currency before multiplication. Condition exclusion indicator Indicates whether the system automatically excludes the discounts that are proposed during pricing. You can set this indicator in two ways: • For a particular condition record (the field appears on the Details screen) • For all records of a particular condition type (the field appears on the screen where you define the condition type) Note If you set the indicator to exclude conditions, there are several things to consider: • The system will still take into account any condition supplements that are part of the condition record for the price (condition type PR00, for example) • You can allow for exceptions where you want to include discounts in spite of the condition exclusion indicator (for a particular discount condition you can specify a requirement that applies the discount ONLY when the indicator is set) Condition is Relevant for Accrual (e.g. Freight) • Indicates that the system posts the amounts resulting from this condition to financial accounting as accruals.
  • 50. Hand Book for SAP Taxation-India 99 • If you mark this indicator, the condition appears in the document as a statistical condition. Condition for configuration • Before Release 4.0 variant conditions (VA00) had to be created with the condition category 'O' • Problem: It was not possible to indicate a 'Variant condition' at the same time as 'Internal costing condition' and 'Freight'. • Solution: For this reason more indicators are being set up in 4.0 for the condition type: • * 'Variant condition' (KVARC) • * 'Internal costing condition' (KFKIV) • The characteristic values O and I for the condition category must no longer be used. • For more information, see the note 93426. Pricing date Procedure • Enter the identification code for the date to which a condition of this type is to be calculated in the sales document. If you do not enter an identification code, the pricing date or the date of services rendered is used. Example • It is a good idea to use the goods issue date as the calculation date for freight surcharges. In this case, you enter 'A' as the identification code. Condition for invoice list • Marks the condition type as relevant for internal costing. Hand Book for SAP Taxation-India 100 Quantity conversion This field controls the quantity conversion during determination of the condition basis. The field is only relevant for calculation rule 'C' (quantity- dependent. It is relevant if the sales quantity unit and the condition quantity unit are identical (and is different to the basis quantity unit). • Deactivated: The condition basis quantity is converted via the quantity to the stock keeping unit. This means that the condition quantity is determined for planned factors. This means that a change to the conversion factors in the delivery or the order are not taken into account. Rounding errors can occur during quantity conversion. • Activated: If the sales quantity unit and the condition quantity unit are identical, the quantity of the document item is used, i.e. the actual quantity. Condition for inter-company billing • Conditions for Internal Costing, for example PI01 and PI01 were defined before Release 4.0 by KNTYP = I (Price for internal costing). • Problem: It was not possible to indicate 'Freight condition' at the same time as 'Internal costing condition' and 'Variant condition'. • Solution: Therefore a new indicator 'Internal costing condition' (KFKIV) has been set up. You can use this to indicate a freight condition as an internal costing condition. For more information, see note 93426. Relevance for account assignment Controls how account assignment is performed for conditions of this type.
  • 51. Hand Book for SAP Taxation-India 101 Procedure If you leave the field blank, account assignment is performed in the usual way. If you enter the indicator B, the system includes the accounting indicator in the account assignment process. The information from the condition record is forwarded to Controlling with the classification "accounting indicator". The system links the condition record to the underlying billing document item to find the accounting indicator that has been assigned to a particular transaction. In the standard system, the condition type KBM1 is set up for use in transactions involving an accounting indicator. Account assignment using an accounting indicator is often used in Service Management. It enables you to identify how costs incurred by a particular service transaction arose (for example, goodwill, under guarantee). Text determination procedure Identifies a group of text types that you can use in, for example, a sales document header. The text procedure also determines the sequence in which the text types appear in the document. Example The text procedure for a sales document header could include the following text types: • A standard header text that the system automatically includes in the document • Standard terms of delivery • Standard terms of payment Text ID for text edit control Hand Book for SAP Taxation-India 102 • Specifies which text ID appears in Text Edit Control. • The text ID defines the different types of texts that belong to a text object. SD Condition Types [Access Sequence: JST1] JIPC IN C Sales tax inv. JIPL IN L Sales tax inv. JIPS IN Sales tax setoff JVCD Inp VAT Cr CG JVCN Inp VAT w/o Cr CG JVCS Inp CST under VAT JVRD Inp VAT Cr Non-CG JVRN Inp VAT w/o Cr Non-C To see the Details of each condition Type OBQ1: Click on details icon
  • 52. Hand Book for SAP Taxation-India 103 JIPC IN C Sales tax inv. Hand Book for SAP Taxation-India 104 JIPL IN L Sales tax inv.
  • 53. Hand Book for SAP Taxation-India 105 JIPS IN Sales tax setoff Hand Book for SAP Taxation-India 106 JVCD Inp VAT Cr CG
  • 54. Hand Book for SAP Taxation-India 107 JVCN Inp VAT w/o Cr CG Hand Book for SAP Taxation-India 108 JVCS Inp CST under VAT
  • 55. Hand Book for SAP Taxation-India 109 JVRD Inp VAT Cr Non-CG Hand Book for SAP Taxation-India 110 JVRN Inp VAT w/o Cr Non-C
  • 56. Hand Book for SAP Taxation-India 111 Service Tax Conditions (ACCESS SEQ: MWST): AP - Accounts Payable – SERVICE TAX TCode: OBQ1 Condition Type Description JSVD Inp / AP Service Tax Cr JEC3 Inp / AP SerTx Ecess Cr JSE1 Inp / AP SerTx SEcess Cr JSER Inp SrvTx (Not used) JEC4 Inp SrvTxEces w/o Cr JSE2 Inp SrvTxSEces w/oCr JSV2 Inp SrvTx w/o Cr Hand Book for SAP Taxation-India 112 JSVD Inp / AP Service Tax Cr TO CHANGE ACCESS
  • 57. Hand Book for SAP Taxation-India 113 JEC3 Inp / AP SerTx Ecess Cr Hand Book for SAP Taxation-India 114 JSE1 Inp / AP SerTx SEcess Cr
  • 58. Hand Book for SAP Taxation-India 115 JSER Inp SrvTx (Not used) Hand Book for SAP Taxation-India 116 JEC4 Inp SrvTxEces w/o Cr
  • 59. Hand Book for SAP Taxation-India 117 JSE2 Inp SrvTxSEces w/oCr Hand Book for SAP Taxation-India 118 JSV2 Inp SrvTx w/o Cr
  • 60. Hand Book for SAP Taxation-India 119 4. Checking and Changing [Account Key]Settings for Tax Processing In this activity you make the necessary specifications for posting taxes. In doing this you specify under a process key the following indicators: • Tax type Output tax, input tax, additional taxes, or "not tax-relevant" can be specified as the tax type. • Nondeductibility of tax amounts For this, tax amounts are marked as not deductible. • Posting indicator Here you specify whether the tax amount is posted separately or distributed to expense or revenue items. • Tax not relevant to cash discount (Not discount relevant) This indicator is set only for Canada. If you select it, the system does not take into account the corresponding tax amount when determining the tax base. Standard settings Process keys with the most important characteristics for tax amounts have already been set in the standard SAP system. Recommendation Do not change the standard settings. Check whether you can use these process keys for your company, making changes only if necessary. Activities Hand Book for SAP Taxation-India 120 If you cannot use the standard settings, use new process keys and enter them in your calculation procedure. Do not change the standard SAP process keys. Note You must make enhancements to the standard settings if you want to specify a new account key in the "Create calculation procedure" activity. You must create and maintain this key beforehand in the "Settings for tax processing" activity. Transaction code OBCN IMG menu Financial Accounting (New) → Financial Accounting Global Settings (New) → Tax on Sales/Purchases → Basic Settings → Check and change Settings for Tax Processing
  • 61. Hand Book for SAP Taxation-India 121 Internal processing key The internal processing keys are used by the system to determine accounts or posting keys for line items which are created automatically. The processing keys are defined in the system and cannot be changed by the user. Text (20 Characters) Proces s Description Tax type Non deductible Postin g indic. Not disscnt rel. ESA Outp Srv Tx 1 2 ESE Inp SrvTx Cr 2 2 JI5 Inp SrvTxSEces Cr 2 2 JI6 Inp SECess Cr 2 2 JN6 Outp VAT 1 2 JN7 Outp CST under VAT 1 2 JP4 Inp CST under VAT 2 X 3 JP5 Inp VAT Cr Non-CG 2 2 JP6 Inp VAT w/o Cr NonCG 2 X 3 JP7 Inp VAT Cr CG 2 2 JP8 Inp VAT w/o Cr CG 2 X 3 VS1 Inp BED Cr 2 2 VS2 Inp AED Cr 2 2 VS3 Inp SED Cr 2 2 VS5 Inp LST Setoff 2 2 Hand Book for SAP Taxation-India 122 VS8 Inp SrvTxEces Cr 2 2 VS9 Inp Ecess Cr 2 2 ZSE Outp Ecess on Srv Tx 1 2 ZSS Outp SEces on Srv Tx 1 2 5. Defining Tax Accounts ) B B B B ! In this activity, you specify the accounts to which the different tax types are to be posted. The system determines these accounts for automatic postings. Activities Define the tax accounts. Notes for the transport of tax accounts When you transport tax codes between different systems or clients, no tax accounts are transported. Adjust the tax accounts in the source and target system (or source and target client) manually.
  • 62. Hand Book for SAP Taxation-India 123 Transactio n Description CO A GL Account Posting Keys Debi t Credi t ESA Outp Srv Tx BPI N 1814110 1 40 50 ESE Inp SrvTx Cr BPI N 2636421 1 40 50 Hand Book for SAP Taxation-India 124 JI5 Inp SrvTxSEces Cr BPI N 2636421 8 40 50 JI6 Inp SECess Cr BPI N 1871900 0 40 50 JN6 Outp VAT BPI N 1662211 1 40 50 JN7 Outp CST under VAT BPI N 1662212 1 40 50 JP5 Inp VAT Cr Non-CG BPI N 2637211 1 40 50 JP7 Inp VAT Cr CG BPI N 2637211 2 40 50 VS1 Inp BED Cr BPI N 1871900 0 40 50 VS2 Inp AED Cr BPI N 1871900 0 40 50 VS3 Inp SED Cr BPI N 1871900 0 40 50 VS8 Inp SrvTxEces Cr BPI N 2636421 6 40 50 VS9 Inp Ecess Cr BPI N 1871900 0 40 50
  • 63. Hand Book for SAP Taxation-India 125 MM-CIN CONFIG Table of Content – MM-CIN LOGISTICS GENERAL – TAX ON GOODS MOVEMENTS Basic Settings Maintain excise registrations Maintain company code settings Maintain plant settings Maintain excise groups Maintain series groups Maintain excise duty indicators Maintain postal addresses Maintain sub transaction types Determination of Excise Duty Select tax calculation procedure Maintain excise defaults. Condition-Based Excise Determination Defining tax codes for purchasing documents. Assignment of tax codes to company code. Classify condition type. Master Data Maintain Chapter ids Assign users to material mater screen sequence for Excise Duty Define form types Account Determination Hand Book for SAP Taxation-India 126 Define g/l accounts for taxes Specify excise accounts per excise transaction. Specify g/l accounts per excise transaction Business Transactions Incoming Excise Invoices Select fields. Define processing modes per transaction. Define reference documents per transaction. Maintain rejection codes. Specify which movement types involve excise invoices Excise Invoice Capture against Delivery in the Background. Subcontracting Subcontracting attributes. Maintain movement type groups Utilization Utilization Determination Maintain Minimum Balances for Excise Accounts Excise Registers Specify sap script forms. Tools Long Texts Number ranges. Message control.
  • 64. Hand Book for SAP Taxation-India 127 I. Basic Settings A. Maintain Excise Registrations Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Basic Settings → Maintain Excise Registrations In this IMG activity, you maintain the data relating to your excise registrations. Enter each of your excise registrations, specifying a four-character code for each. Excise registration An entity in India that is entitled by law to produce any goods liable to excise. Each entity is assigned its own excise registration number. Every factory that manufactures excisable goods is required to register separately, so that a business with seven factories requires seven registrations. Hand Book for SAP Taxation-India 128 To define excise registration click on New Entries icon and enter the Excise registration code. Maintain the details for an Excise Registration. ECC number A tax number assigned, in India, by the Department of Revenue to legal and natural persons liable to excise duty. The taxpayer is required to obtain a separate ECC number for each registered premises (for example, factory, warehouse, or dealer's premises). Excise registration number The number used to identify an excise registration (India only). When a business registers with the local excise authorities, the authorities issue it a separate number for each registration. Excise range
  • 65. Hand Book for SAP Taxation-India 129 A subdivision, in India, of an excise division. The excise ranges are responsible for issuing ECC numbers. Excise division A subdivision of an excise commissioner ate, in India. In turn, excise divisions are split up into excise ranges. Excise commissioner ate An administrative body, in India, that assesses and collects excise duty. It reports to the Central Board of Excise and Customs. There are around 90 commission rates in India, and they are subdivided into excise divisions, which in turn are divided into excise ranges. Additional excise duty A form of excise duty, in India, levied on a select range of products, for the most part, textiles. Special excise duty A form of excise duty in India on a limited number of goods, mostly luxury goods, including pan masala, sparkling waters, furs, and yachts. Cess In India, a tax on the manufacture of certain products, mostly foodstuffs. Number of Items in Excise Invoice Shows the maximum number of line items that you are allowed to include in a single outgoing excise invoice. Dependencies This information affects the transactions for creating outgoing excise invoices for factory sales and for other movements. This information is used to split the transfer postings' items into multiple subcontracting challans. Hand Book for SAP Taxation-India 130 Excise Register Set Description Description of the excise register set. Partial CENVAT Credit Specifies that the excise registration is allowed to credit only a portion of its input excise duty to its CENVAT account. Dependencies When you post a goods receipt, the system splits the input excise duty on the material into its deductible and nondeductible amounts. It posts the deductible duty to the appropriate CENVAT account, and adds the nondeductible duty to the material value. This information is also shown when you post the incoming excise invoice. Indicator for confirming NCCD Usage NCCD - National calamity contingency duty. Select this Indicator if NCCD Usage is applicable. Liable to AT1, AT2. Select this indicator if Excise Registration Is Liable to AT1 (Additional Tax 1 In this case S.H.Ecess).The same is applicable in case of AT2 and AT3. B. Maintain Company Code Settings Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Basic Settings → Maintain Company Code Settings
  • 66. Hand Book for SAP Taxation-India 131 Hand Book for SAP Taxation-India 132 Document Type for CENVAT Postings Controls which document type the system uses when making CENVAT postings in Financial Accounting (FI). Document type for FI posting on Utilization Financial accounting document type for TDS posting. Overwrite Debit Accounts Allows users, when entering journal vouchers, to overwrite the proposed debit accounts depending on the nature of transaction. First Month in Excise Year Specifies which calendar month marks the beginning of the excise year. • Dependencies If the excise authorities change the start month, change the month here. Days to be considered for excise invoice selection Number of days from document date for excise invoice selection. • Example If the value of this field is 20 and today is 28-03-97. The excise invoice selection will show the related invoices only for the period 08-03-97 to 28-03-97. Number of excise invoices to be selected
  • 67. Hand Book for SAP Taxation-India 133 Indicates the number of excise invoices that needs to be selected in the excise invoice selection. Indicator for item level excise duty round off Rounds off the excise duty on each line item in a purchase order. • Dependencies The system rounds the duty off to the nearest rupee. However, if the duty amount is less than one rupee then no rounding is done. It does not round off the CENVAT credit to be taken. Rounding off of Exicse duty for outgoing excise invoice Rounds off the excise duty be paid when you create an outgoing excise invoice. • Dependencies The system rounds off the excise duty for each line item separately. Exchange Rate Type Key representing a type of exchange rate in the system. You enter the exchange rate type to store different exchange rates. • Example Hand Book for SAP Taxation-India 134 You can use the exchange rate type to define a buying rate, selling rate, or average rate for translating foreign currency amounts. You can use the average rate for the currency translation, and the bank buying and selling rates for valuation of foreign currency amounts. Exchange rate type to be used for Export excise duty covers Specifies which exchange rate type the system uses to translate excise duty when you create an outgoing excise invoice for export sales CVD Clearing Account Specifies the countervailing duty clearing account. Dependencies When you post an incoming excise invoice for goods that you have purchased abroad, the system credits the countervailing duty to this account. C. Maintain Plant Settings Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Basic Settings → Maintain Plant Settings In this IMG activity, you maintain excise information relating to your plants.
  • 68. Hand Book for SAP Taxation-India 135 Enter Plant and specify Maintain Appropriate excise Registration number andselect multiple goods receipt Per EI List box and SAVE. Plant Key uniquely identifying a plant. Definition: plant Logistics - General (LO) In Logistics a plant is an organizational unit for dividing an enterprise according to production, procurement, maintenance, and materials planning. A place where materials are produced, or goods and services are provided. Depot Indicates that the plant in question is a depot. Dependencies Hand Book for SAP Taxation-India 136 Depots are required to prepare register RG 23D, and follow different procedures for goods receipt and invoice generation. Excise Registration Specifies the excise registration. Procedure Specify which excise registration this plant belongs to. Number of Goods Receipts per Excise Invoice Specifies whether you are allowed to receive more than one delivery per excise invoice, and if so, whether you can take the CENVAT credit immediately (Multiple Credits) or have to wait until the delivery has been made in full (Single Credit). D. Maintain Excise Groups Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Basic Settings → Maintain Excise Groups In this IMG activity, you define your excise groups. For each excise group, you can also control how various excise invoice transactions will work.
  • 69. Hand Book for SAP Taxation-India 137 Excise Group Specifies the excise group. Hand Book for SAP Taxation-India 138 Definition: excise group A unit within an excise registration, in India, which keeps its own set of excise records. Whereas the excise registration reports to the excise authorities, the excise group is a purely internal organizational unit. Each excise group keeps records of all transactions that have to be reported to the excise authorities. When the time comes to present these records to the authorities, the excise registration compiles the information from all of its excise groups. Plant Key uniquely identifying a plant. Definition: plant Logistics - General (LO) In Logistics a plant is an organizational unit for dividing an enterprise according to production, procurement, maintenance, and materials planning. A place where materials are produced, or goods and services are provided. Excise Group Description Describes the excise group. Excise Registration Specifies the excise registration. Definition: excise registration An entity in India that is entitled by law to produce any goods liable to excise. Each entity is assigned its own excise registration number. Every factory that manufactures excisable goods is required to register separately, so that a business with seven factories requires seven registrations.
  • 70. Hand Book for SAP Taxation-India 139 Number of Goods Receipts per Excise Invoice Specifies whether you are allowed to receive more than one delivery per excise invoice, and if so, whether you can take the CENVAT credit immediately (Multiple Credits) or have to wait until the delivery has been made in full (Single Credit). Copy Excise Invoice Quantity to Goods Receipt Instructs the system, when you post a goods receipt using an incoming excise invoice as a reference document, to copy the excise invoice quantity to the goods receipt. Create Excise Invoice Automatically Instructs the system to automatically create an outgong excise invoice immediately you create a commercial invoice or a pro forma invoice. The system creates the excise invoice in the background. • Dependencies If you want to make use of this function, you must also define the default plant, excise group, and series groups in Customizing for Excise Duty, by choosing Business Transactions -> Outgoing Excise Invoices -> Maintain Default Excise Groups and Series Groups. Automatic Posting for J1IS Instructs the system to automatically verify and post excise invoices that you create using the Excise Invoices for Other Movements transaction Create Part I Entry for Direct Consumption Hand Book for SAP Taxation-India 140 Automatically creates two entries in Part I of register RG 23 A or RG 23 C immediately you post a goods receipt for direct consumption, one entry to record the goods receipt, and one for the goods issue. Uniquely, goods for direct consumption are not added to a material stock. Instead, the system posts them straight to a consumption account. You do not create a separate goods issue. However, with other goods, it is the goods issue material document that causes the system to create the Part I entry for the goods issue. This function overcomes that problem: When you enter a goods receipt for direct consumption, the sysstem automatically creates two Part I entries (for the receipt and the issue) from the goods receipt document. • Examples You enter a goods receipt for 100 lengths of steel for direct consumption. The system creates a single material document for the goods receipt and issue. From this material document it generates two Part I entries for register RG 23 A, one for the goods receipt and another for the goods issue. Depot Indicates that the plant in question is a depot. Dependencies Depots are required to prepare register RG 23D, and follow different procedures for goods receipt and invoice generation. Generate Folio Numbers Automatically generates a folio number when you post a goods receipts and goods issues that are recorded in register RG 23D. Dependencies
  • 71. Hand Book for SAP Taxation-India 141 If you use this function, maintain the number ranges for the folio number. In Customizing for Excise Duty, choose Tools -> Number Ranges, and create an interval for J_1IRG23D (Folio Numbers). Automatically Verify and Post EIs for Depot Sales Automatically verifies and posts the selection of excise invoices that you have assigned to a delivery from a depot. Address Specifies an organization's postal address. Capture Excise Invoice in MIGO Enables users to capture incoming excise invoices when they enter a goods receipt in the standard Goods Movement transaction, (MIGO). This applies to manufacturing plants and depots alike. Dependencies When you run the Goods Movement transaction, it shows two additional Excise Invoice tabs, one at header level and one at item level. You enter the goods receipt details and the excise invoice information. When you save the goods movement, the system automatically saves the excise invoice, to be posted by an excise supervisor later on using the Incoming Excise Invoices transaction. Post Excise Invoice Captured in MIGO Enables users in manufacturing plants to post incoming and outgoing excise invoices in the standard Goods Movement transaction, (MIGO). It also enables users in depots to post incoming excise invoices (for goods receipts) and RG 23D selections (for goods issues). Hand Book for SAP Taxation-India 142 Use Since when you post an excise invoice, the system creates an entry in register RG 23A or RG 23C (manufacturing plants) or register RG 23D (depots), activate this function only if the users working with this transaction are familiar with the excise duty system. Dependencies When you run the Goods Movement transaction, it shows two additional Excise Invoice tabs, one at header level and one at item level. You enter the goods movement details and the excise invoice information. When you save the goods movement, you can also post the excise invoice. Post Incoming Excise Invoice at MIGO if duties are changed Enables users to post incoming excise invoices in the standard Goods Movements transaction, (MIGO), even if they have changed any of the excise duty information in the Excise Invoice tabs. Otherwise, if they change the excise duty, the transaction only allows them to capture the excise invoice, for verification and posting by an excise supervisor later on. Create Excise Invoice or RG23D Selection in MIGO Enables users in manufacturing plants to create outgoing excise invoices when they enter a goods issue in the standard Goods Movement transaction, (MIGO). It also enables users in depots to select the appropriate RG 23D entries when they enter a goods issue. Dependencies
  • 72. Hand Book for SAP Taxation-India 143 When the user runs the Goods Movements transaction, it shows two additional Excise Invoice tabs, one at header level and one at item level. In manufacturing plants, the user enters the goods issue details and the excise invoice information. When they save the goods movement, the system automatically saves the excise invoice, to be posted by an excise supervisor later on. In depots, the user enters the goods issue details and assigns the goods to the RG 23D entries that the system created when the warehouseman posted the original goods receipt. Update RG1 at MIGO Creates an entry in register RG 1 immediately you create an outgoing excise invoice in the standard Goods Movement transaction, MIGO, if the goods in the excise invoice are finished goods. Otherwise, the RG 1 entry is not created until you execute the Register Update program. E. Maintain Series Groups Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Basic Settings → Maintain Series Groups In this IMG activity, you define the different excise series groups within your company. Series groups allow you to maintain multiple number ranges for the outgoing excise documents. Based on excise regulations and exemptions from the authorities you can maintain multiple number series for outgoing documents. But each of these series has to be declared to the excise authorities. Activities Hand Book for SAP Taxation-India 144 • Define excise series groups based on type of outgoing document • Assign series group to excise registration ID • If no financial postings are required for an Excise invoice in this seris group then you tick the 'No utilization' indicator. • If the CENVAT has to be paid immediately and you need not wait for the Fort nightly payment then mark the 'Immediate Utilization' indicator. Example You could define two series groups, group 001 for excise invoices, and group 002 for 57 F4 documents.
  • 73. Hand Book for SAP Taxation-India 145 Excise Document Series Group Specifies the excise document series group. Definition: excise document series group Logistics - General (LO) A system object that excise registrations use, in India, to organize the various types of excise documents into groups. You group excise documents to reflect the way that the excise documents are organized in your excise registrations. The system numbers each group separately, using a separate number range interval for each. Hand Book for SAP Taxation-India 146 • Example An excise registration uses various types of excise documents, including outgoing excise invoices and ARE-1s. It creates a series group for the ARE-1s, but because it has so many excise invoices, it creates two series groups for these, one for finished materials, and one for raw materials. Document Series Description Excise series group description. Excise Registration Specifies the excise registration No account postings for CENVAT in sales cycle No utilization Flag If you do not need any CENVAT utilization for an excise invoice but would like to just generate an excise invoice then you need to mark this indicator. IF the flag is checked then system will create an Excise invoice in the given Series group but there will not be any account postings or Part2 postings. Immediate Utilization of CENVAT Specifies that when you create an excise invoice, the system immediately pays the amount from CENVAT and creates the Part II entry. Such invoices will not be listed for fortnightly utilization. If you have both fortnightly and immediate utilization for the same excise group, the account determination within CIN IMG should point to the ED interim account.
  • 74. Hand Book for SAP Taxation-India 147 Account determination for immediate payment will be done exactly the same as being done for fortnightly utilization program. Export Period Specifies the export period. The export period applies to exports under bond and exports under claim for rebate. Dependencies If you try to change an ARE-1 after the end of the export period, the system issues a warning message. You then have two options: • If you manage to obtain an extension from the excise department, you enter the extension date in the ARE-1. This effectively extends the ARE-1's export period. • Otherwise, in the case of exports under bond you must pay the excise duty plus interest. In the case of exports under claim for rebate, you forego the excise duty already paid. You then close the ARE-1 as normal. Export period Logistics - General (LO) The maximum length of time that you are allowed to export goods from India after you have removed them from your premises. If you exceed the export period, you forego the exemption from basic excise duty and you must pay the excise duty to the excise authorities. Hand Book for SAP Taxation-India 148 Rebate Period Specifies the rebate period. This applies to exports under claim for rebate only. Dependencies The system does not offer any functions for controlling which ARE-1s have exceeded the rebate period. SAP recommends that you create your own programs for this purpose, if you wish. Rebate period Logistics - General (LO) Under India's exports under rebate scheme, the maximum length of time that you are allowed to reclaim any excise duty that you have paid on exports. Fast Credit Automatically credits the excise duty from ARE-1s back to the running bond account as soon as you enter the date on which you received the countersigned ARE-1 back from the customs office. Otherwise, the system does not credit the duty back until the local excise authorities confirm that the export has been completed. Select this indicator if you have an agreement with your local excise department to this effect. Address Specifies an organization's postal address. If you use the Exports Under Excise Regulations solution, enter a default customs address for this series group. Otherwise, leave the field blank. When a user creates an ARE-1 in this series group in the ARE Documents transaction, the system automatically proposes this address for the customs department. The address is shown on printouts of ARE-1s.
  • 75. Hand Book for SAP Taxation-India 149 Dependencies You define addresses in Customizing for Logistics - General, by choosing Tax on Goods Movements -> India -> Basic Settings -> Maintain Postal Addresses. F. Maintain Excise Duty Indicators Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Basic Settings → Maintain Excise Duty Indicators In this IMG activity, you maintain the excise duty indicators G. Maintain Postal Addresses Hand Book for SAP Taxation-India 150 Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Basic Settings → Maintain Postal Addresses In this IMG activity, you maintain the addresses of various customs and excise organizations that your company deals with. You use these addresses in the ARE Documents functions. When you create an ARE-1 or ARE-3, you enter the address of the excise department and the customs department involved in the export process. The system then prints their names and addresses on the AREs. You can then define a default local excise department for each excise group and a default customs department for each series group. Address Specifies an organization's postal address. Enter a three-digit code for the address. Excise Address Description (example) Addresses maintained for ARE1 documents Address 1 - Address of C.E.Superintendent:
  • 76. Hand Book for SAP Taxation-India 151 Attibele Range, IV Floor, 'A' Wing Kendriya Sadanaa Koramangala, Bangalore - 560 034 H. Maintain Sub transaction Types Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Basic Settings → Maintain Subtransaction Types In this IMG activity, you can define subtransaction types. Activities By default, the system records excise duties on the accounts that you have specified in the IMG activity Specify Excise Accounts per Excise Transaction. If you want to be able to record some excise duties on other accounts: 1. Create a subtransaction type in this IMG activity. 2. In the IMG activity Specify Excise Accounts per Excise Transaction, create a new entry with this subtransaction type and enter the accounts that you want to post to. Hand Book for SAP Taxation-India 152 Sub Transaction Type Specifies the subtransaction type and text. II. Determination of Excise Duty A. Select Tax Calculation Procedure Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Basic Settings → Determination of Excise Duty Select Tax Calculation Procedure In this IMG activity, you specify which tax procedure you want to use for determining excise duties and sales taxes on input materials in India. • If you use condition-based excise determination, use a copy of the tax procedure TAXINN. • If you use formula-based excise determination, use a copy of the tax procedure TAXINJ.
  • 77. Hand Book for SAP Taxation-India 153 This tax procedure also supports condition-based excise determination, so that you can work with both concurrently. We strongly recommend that new customers use condition-based excise determination. Note that once you have started using a tax procedure, you cannot switch to another one, otherwise you will not be able to display old documents. Condition-based excise determination - TAXINN A method that the system uses of determining excise duty in India. This method requires you to create condition records for each combination of vendor or customer and material (and possibly other conditions). When you create a purchasing document, the system calls the tax procedure assigned to India. The tax procedure finds all of the condition records that you have created for that combination of vendor and material. When you create a sales document, the excise duties and sales taxes are determined by the pricing procedure (not the tax procedure). Formula-based excise determination - TAXINJ A method that the system uses of determining excise duty in India. This method was used in the Country Version India Add-On and requires you to maintain additional data in the Excise Rate Maintenance transaction, J1ID. When you create a purchasing document, the system calls the tax procedure assigned to India. Each of the excise duties in the tax procedure has its own condition types, and each condition type is assigned to a formula. This formula instructs the system to calculate the excise duty using the data that you have maintained in the Excise Rate Maintenance transaction. When you create a sales document, the system determines the excise duties and sales taxes using the pricing procedure (not the tax procedure). Hand Book for SAP Taxation-India 154 Country Key The country key contains information which the system uses to check entries such as the length of the postal code or bank account number. The two-character ISO code in accordance with ISO 3166, which is delivered by SAP as a default, is usually used. Procedure (Pricing, Output Control, Acct. Det., Costing,...) Specifies the conditions that are allowed for a document and defines the sequence in which they are used. • Example Procedures are used, for example, in the following applications: • Pricing in sales and distribution • Applying overhead in Product Costing (costing sheets) and for CO internal orders • Calculating accrued costs in Profitability Analysis
  • 78. Hand Book for SAP Taxation-India 155 • Output control (printed confirmations, EDI messages, electronic mail) • Account determination • Calculating taxes on sales/purchases • Calculating accruals in Cost Center Accounting • Pricing for resource planning B. Maintain Excise Defaults Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Basic Settings → Determination of Excise Duty Maintain Excise Defaults In this IMG activity, you define which tax procedure and pricing condition types are used in calculating excise taxes using formula-based excise determination. Activities If you use condition-based excise determination, fill out the CVD cond. field and leave all the others blank. If you use formula-based excise determination, fill out all of the fields as follows: • Enter the tax procedure and the pricing conditions that are relevant for excise tax processing. • Specify the purchasing and sales conditions types used for basic excise duty, additional excise duty, special excise duty, and cess. Hand Book for SAP Taxation-India 156 • Specify the conditions in the sales order that are used for excise rates. • Specify the countervailing duty condition type used for import purchase orders.
  • 79. Hand Book for SAP Taxation-India 157 Tax proc. TAXINJ TAXINN CVD cond. JCV1 JCV1 Exp tax cd A0 Tax jur.cd 9900 A/P BED Cond JMO1 JMX1 A/P SED Cond JSO1 JSX1 A/P AED Cond JAO1 JAX1 A/R BED Cond JEX2 JEXP A/R SED Cond JEXS A/R AED Cond JEXA A/R CESS Cond JCES BED perc JMOD JMOP AED perc JAED JAOP SED perc JSED JSOP Cess perc JCED ECS CVD ECS AP JEX1 ECS AR JECS ECS Perc JEC1 ECS Cond JECV ADC Cond JADC AP AT1 Cond JSEP AR AT1 Cond JHCS AT1 Perc JHCS Hand Book for SAP Taxation-India 158 CVD Condition Type A/P Specifies which condition type you use for countervailing duty on imports Countervailing duty Financial Accounting (FI) A form of excise duty imposed on imports that are subsidized by the country in which they were manufactured. Countervailing duty (also known as CVD) is intended to make the imports more expensive, thereby redressing any competitive advantage they might have over goods produced locally. Export tax code Specifies the tax code used for calculating excise duty on nonbonded exports. Dependencies When you create an outgoing excise invoice for a nonbonded export sale, you choose Calculate Tax; the system applies the tax code that you have entered here. Export tax jurisdiction code (Dummy) The tax jurisdiction is used for determining the tax rates in the USA. It defines to which tax authorities you must pay your taxes. It is always the city to which the goods are supplied. Account payable BED condition type
  • 80. Hand Book for SAP Taxation-India 159 Condition Type defined in Tax Procedure TAXINJ for Basic Excise Duty on Accounts Payable. Account payable SED condition type Account payable AED condition type Condition Type defined in Tax Procedure TAXINJ for Additional Excise Duty on Accounts Payable. Account receivable BED condition type Condition Type defined in Tax Procedure TAXINJ for Basic Excise Duty on Accounts Receivable. Account receivable SED condition type Account receivable AED condition type Condition Type defined in Tax Procedure TAXINJ for Additional Excise Duty on Accounts Receivable. Account receivable CESS condition type Condition Type defines in Tax Procedure TAXINJ for Cess on Account Receivable. BED Percentage condition AED Percentage condition SED Percentage condition Hand Book for SAP Taxation-India 160 CESS Percentage condition III. Condition-Based Excise Determination. (TAXINN only) A. Define Tax Codes for Purchasing Documents Transaction code FTXP IMG menu Logistics – General → Tax on Goods Movements → India → Basic Settings → condition Based Excise Determination Define Tax Code for Purchasing Documents In this IMG activity, you define a tax code for the purposes of calculating excise duty when you enter purchasing documents. Only carry out this activity if you use condition-based excise determination. Activities Create a new tax code, and set the tax code type to V (input tax). Do not make any other settings for it.
  • 81. Hand Book for SAP Taxation-India 161 Hand Book for SAP Taxation-India 162 B. Assign Tax Code to Company Codes Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Basic Settings → condition Based Excise Determination Assign Tax Code to Company Codes In this IMG activity, assign the tax code for purchasing documents to the company codes where it will be used. Only carry out this activity if you use condition-based excise determination. Company Code The company code is an organizational unit within financial accounting. Sales Tax Code The tax code represents a tax category which must be taken into consideration when making a tax return to the tax authorities.
  • 82. Hand Book for SAP Taxation-India 163 Tax codes are unique per country. The tax rate calculation rules and further features are stored in a table for each tax code. Procedure For tax-exempt or non-taxable transactions, you should use tax codes with a 0 percentage rate if the corresponding transactions are to be displayed in the tax returns. C. Classify Condition Types Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Basic Settings → Determination of Excise duty Condition Based Excise Determination Classify Condition Types In this IMG activity, you specify which condition types you use for which sort of tax. Note that this only applies to condition types that you use with the new excise determination method. The system uses this information when you create a document from another one. For example, when you enter an incoming excise invoice from a purchase order, or when you create an outgoing excise invoice from a sales order, the system determines the various excise duties in the excise invoice using the information that you have entered here. In addition, when you create a purchasing document, the system only uses the condition types that you enter here. • For taxes on purchases, use the condition types contained in the tax procedure. • For taxes on sales, use the condition types contained in the pricing procedures. Hand Book for SAP Taxation-India 164 Standard settings The standard system comes with sample settings for the tax calculation procedures and pricing procedures. Use these settings as a basis for your own.
  • 83. Hand Book for SAP Taxation-India 165 Procedure (Pricing, Output Control, Acct. Det., Costing,...) Specifies the conditions that are allowed for a document and defines the sequence in which they are used. Example Procedures are used, for example, in the following applications: • Pricing in sales and distribution • Applying overhead in Product Costing (costing sheets) and for CO internal orders • Calculating accrued costs in Profitability Analysis • Output control (printed confirmations, EDI messages, electronic mail) • Account determination • Calculating taxes on sales/purchases • Calculating accruals in Cost Center Accounting • Pricing for resource planning Condition Type • The condition type is used for different functions. In pricing, for example, the condition type lets you differentiate between different kinds of discount; in output determination, between Hand Book for SAP Taxation-India 166 different output types such as order confirmation or delivery note; in batch determination, between different strategy types. Condition name for Indian tax conditions IV. Master Data A. Maintain Chapter IDS In this IMG activity, you maintain the chapter IDs and the corresponding descriptions as per the schedules published by the Central Board of Excise and Customs. Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Master Data → Maintain Chapter IDs Definition: chapter ID Logistics - General (LO) The number given to a material in the schedules of materials published by the government of India. The schedule lists all materials involved in manufacturing, input materials and output materials alike. It shows how much excise duty is levied on each material. Each material in the schedule is assigned its own identification code, called "chapter ID." Example
  • 84. Hand Book for SAP Taxation-India 167 The schedule contains an entry for ceramic roofing tiles, which are liable to basic excise duty at 16%. The chapter ID associated with these tiles is 6903.10. Chapter ID Specifies the material's chapter ID. Description as per Law Shows the text of the chapter ID as per the Central Excise Law. Hand Book for SAP Taxation-India 168 Chapter ID Specifies the material's chapter ID. Unit of Measure for Excise The Unit of Measure for Excise describes the Unit for which the Excise rate is defined, under the Chapter, Headings and Sub-headings. This Unit of Measure for Excise is required to be defined in cases where Quantity-based taxes are applicable. Examples For Chapter ID 7216.10, the Excise duty is Rs. 1000 per ton. Here the Unit of Measure for Excise will be 'TON'
  • 85. Hand Book for SAP Taxation-India 169 Description as per Law Shows the text of the chapter ID as per the Central Excise Law. B. Assign Users to Material Master Screen Sequence for Excise Duty (Standard setting. Do not change this) Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Master Data → Assign Users to Material Master Screen Sequence for Excise Duty In this IMG activity, you customize the material master data so that it shows the information relating to excise duty. Standard settings Country Version India comes with a screen sequence (IN) that shows the excise duty fields. You have to assign it to each of your users. Activities 1. Double-click User Screen Reference. 2. Assign all users who need to see the excise duty information to the screen reference IN. Example Name Screen Reference MISHRA IN Hand Book for SAP Taxation-India 170
  • 86. Hand Book for SAP Taxation-India 171 Hand Book for SAP Taxation-India 172 C. Define form types In this IMG activity, you define which form types you want to record in the system. You can only use form tracking for the form types that you enter here. Note: As per the Union Budget 2009 Deemed export formalities changed. No CT1/CT3 now. Example • Form type: CT3 • Form description: Concessional tax form • Status: Receive
  • 87. Hand Book for SAP Taxation-India 173 Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Master Data → Define Form Types Form Type Concessional Form Type. Form Description Form Type Description. Form is required Tax Classification 4 Customer Definition Indicates whether, during pricing, the system takes into account taxes that relate to the customer (for example, state sales taxes). The system copies the tax classification from the tax information stored in the customer master record of the ship-to party. During pricing, the Hand Book for SAP Taxation-India 174 system uses the tax classification together with the country key (identifies where the customer is located) to calculate relevant taxes. V. Account Determination A. Define G/L Accounts for Taxes Transaction code OB40 IMG menu Logistics – General → Tax on Goods Movements → India → Account Determination → Define G/L Accounts for Taxes In this IMG activity, you specify which G/L accounts you will use to record which taxes. Requirements You have set up G/L accounts for each of the processing keys listed below. Activities Assign an account to each of the following posting keys. The accounts for VS1, VS2, and VS3 are used as clearing accounts during excise invoice verification. • VS1 (basic excise duty) • VS2 (additional excise duty) • VS3 (special excise duty) • VS5 (sales tax setoff) • MWS (central sales tax) • MW3 (local sales tax) • ESA (service tax) • ESE (service tax expense)
  • 88. Hand Book for SAP Taxation-India 175 Hand Book for SAP Taxation-India 176
  • 89. Hand Book for SAP Taxation-India 177 B. Specify Excise Accounts per Excise Transaction Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Account Determination → Specify Excise Accounts per Excise Transaction In this IMG activity, you specify which excise accounts (for excise duty and CENVAT) are to be posted to for the various transaction types. Enter all the accounts that are affected by each transaction type. If you use subtransaction types, enter the accounts for each subtransaction type as well. Activities Transaction type UTLZ is used for determining accounts only while posting excise JVs and also if the payment of excise duty has to be done fortnightly. Hand Book for SAP Taxation-India 178 The fortnightly CENVAT payment utility picks up the credit side accounts from the transaction types of GRPO, EWPO, and TR6C for determining the CENVAT and PLA accounts. There is no separate transaction type for fortnightly payment. Example Excise TT DC ind Account name GRPO CR CENVAT clearing account GRPO CR RG 23 BED account GRPO DR CENVAT on hold account Excise Transaction Types Excise TT Deiscription 57CM 57F CHALLAN COMPLETION 57FC 57F CHALLAN CAPTURE/CHANGE 57NR 57F NON RECEIPT ARE1 EXPORT PROCESSING UNDER ARE1 ARE3 DEEMED EXPORTS UNDER ARE3 CAGI CAPITAL GOODS ISSUES CAPE CAPITAL GOODS CEIV CANCELLATION OF EXCISE INVOICE DIEX DIFFERENTIAL EXCISE THROUGH JV DLFC GOODS REMOVAL THROUGH SALES
  • 90. Hand Book for SAP Taxation-India 179 EWPO EXCISE INVOICE WITHOUT PO GRPO EXCISE INVOICE FOR GOODS RECEIPT / PO MRDY REVERSAL WITHOUT REFERENCE MRRD REVERSAL IN CASE OF CONSUMPTION OTHER THAN PRODUCT MRWO CENVAT REVERSALS FOR WRITE OFF OTHR EXCISE INVOICE FOR OTHER MOVEMENTS TR6C PLA ACCOUNT ADJUSTMENT THROUGH UTLZ FORTNIGHTLY PAYMENTS Hand Book for SAP Taxation-India 180 Excise Transaction Type Identifies the excise transaction. Dependencies The system uses the excise transaction type to determine which G/L accounts have to be posted to.
  • 91. Hand Book for SAP Taxation-India 181 Sub Transaction Type Specifies the subtransaction type. Debit credit indicator To Indicate account is Debited or Credited. Account Name Account name specifies the name of the account used for different transactions. Example RG23ABED Hand Book for SAP Taxation-India 182
  • 92. Hand Book for SAP Taxation-India 183 Hand Book for SAP Taxation-India 184
  • 93. Hand Book for SAP Taxation-India 185 C. Specify G/L Accounts per Excise Transaction Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Account Determination → Specify G/L Accounts per Excise Transaction In this IMG activity, you assign the excise and CENVAT accounts to G/L accounts. When you come to execute the various transactions, the system determines which G/L accounts to post to by looking at the: • Excise group • Company code • Chart of accounts Furthermore, if you want separate account determination settings within an excise group, you can also use sub transaction types. Requirements You have already: • Defined the G/L accounts • Defined the excise groups • Maintained the transaction accounts Activities Hand Book for SAP Taxation-India 186 For each excise group, assign the excise and CENVAT accounts to G/L accounts. For most businesses, one set of accounts will suffice for all transactions. Note You need not remit the CENVAT to the excise department immediately, so maintain the credit account for transaction type DLFC as an excise duty interim account. This will be set off when you remit the duty.
  • 94. Hand Book for SAP Taxation-India 187 Excise Group Specifies the excise group. Excise Transaction Type Identifies the excise transaction. Dependencies The system uses the excise transaction type to determine which G/L accounts have to be posted to. Company Code The company code is an organizational unit within financial accounting. Sub Transaction Type Specifies the subtransaction type. Chart of Accounts Key that uniquely identifies a chart of accounts. G/L account RG23A BED account G/L Account for RG23A basic excise duty. G/L account RG23A AED account G/L Account for RG23A additional excise duty. Hand Book for SAP Taxation-India 188 G/L account for RG23A SED G/L Account for RG23A special excise duty. G/L account for RG23C BED G/L Account for RG23C basic excise duty. G/L account for RG23C AED G/L Account for RG23C basic excise duty. G/L account for RG23C SED G/L Account for RG23C basic excise duty. G/L Account for CENVAT Offset Records the excise duty calculated at the time of invoice verification. The values in this account and the CENVAT clearing account are balanced if there is no difference in the excise amounts at goods receipt and inovice verification. Use The values in this account and the CENVAT clearing account are compared after invoice verification. Examples Comparison of CENVAT clearing and offset accounts and the resultant postings: • If there is no difference in the amounts compared (say 100)
  • 95. Hand Book for SAP Taxation-India 189 Dr. CENVAT clearing acct 100 Cr. CENVAT offset acct 100 • If amount at invoice receipt (say 110) > amount at GR (say 100) Dr. CENVAT plant acct 10 Cr. CENVAT clearing acct 100 Cr. CENVAT offset acct 110 • If amount at invoice receipt (say 90) < amount at GR (say 100) Dr. CENVAT clearing acct 100 Cr. CENVAT plant acct 10 Cr. CENVAT offset acct 90 G/L account for Modvat Clearing The G/L Account for Modvat Clearing is used to post the Excise amount (in case of material for which Modvat can be availed) at the time of Goods Receipt(GR). Use The values in the Modvat Clearing Account and the Modvat Offset Account are compared after Invoice verification. Examples At GR, the Modvat amount is posted as follows : Modvat Plant A/c. Dr. To Modvat Clearing A/c. G/L account for PLA BED (Personal Ledger Account) Hand Book for SAP Taxation-India 190 The Personal Ledger Account (PLA) has the value of funds deposited with the Central government into the Bank Account nominated by them. The funds in the PLA account are used exclusively for the payment of Excise Duty. The funds in either the PLA Account or the RG23A account or the RG23C account are used for payment of Excise Duty at Sales Invoicing. G/L account for PLA AED (Personal Ledger Account) The Personal Ledger Account (PLA) has the value of funds deposited with the Central government into the Bank Account nominated by them. The funds in the PLA account are used exclusively for the payment of Excise Duty. The funds in either the PLA Account or the RG23A account or the RG23C account are used for payment of Excise Duty at Sales Invoicing. G/L account for PLA SED (Personal Ledger Account) The Personal Ledger Account (PLA) has the value of funds deposited with the Central government into the Bank Account nominated by them. The funds in the PLA account are used exclusively for the payment of Excise Duty. The funds in either the PLA Account or the RG23A account or the RG23C account are used for payment of Excise Duty at Sales Invoicing. G/L account for PLA CESS (Personal Ledger Account) The Personal Ledger Account (PLA) has the value of funds deposited with the Central government into the Bank Account nominated by them. The funds in the PLA account are used exclusively for the payment of Excise Duty.
  • 96. Hand Book for SAP Taxation-India 191 The funds in either the PLA Account or the RG23A account or the RG23C account are used for payment of Excise Duty at Sales Invoicing. G/L Account for CENVAT On Hold Records any CENVAT that is temporarily not available - and therefore "on hold" - until certain conditions are met. Examples Countervailing duty paid on imports is not available for utilization until receipt of the goods. On receipt of goods, the relevant duty is to be transferred to the appropriate CENVAT account of the plant. G/L Account for CENVAT Suspense Records excise duty from sales documents. The excise duty is subsequently paid from the CENVAT RG 23A, RG 23 C, or personal ledger accounts. G/L account for PLA On Hold General Ledger Account for PLA Suspense Use Cheques deposited, into the PLA Account maintained with the bank, are posted to this general ledger account initially, pending realisation. The balance in this account is not available for payment of excise duty on despatches until the intimation of realisation of cheque is received from the bank. Subsequently, the realised amounts are transferred to the general ledger account for PLA maintained for the plant. Hand Book for SAP Taxation-India 192 G/L Account for CENVAT Reversal G/L account for RG23A NCCD G/L account for RG23C NCCD G/L account for PLA NCCD G/L account for RG23A ECS G/L account for RG23C ECS G/L account for PLA ECS G/L account RG23A AT1 account [ used for SECS] G/L Account for RG23A basic excise duty. G/L account RG23C AT1 account[ used for SECS] G/L Account for RG23C basic excise duty. G/L account for PLA AT1 (Personal Ledger Account) [ used for SECS] The Personal Ledger Account (PLA) has the value of funds deposited with the Central government into the Bank Account nominated by them. The funds in the PLA account are used exclusively for the payment of Excise Duty.
  • 97. Hand Book for SAP Taxation-India 193 The funds in either the PLA Account or the RG23A account or the RG23C account are used for payment of Excise Duty at Sales Invoicing. VI. Business Transactions A. Incoming Excise Invoices 1. Select Fields Standard setting. Don’t change Transaction code J1IEX_SFAC IMG menu Logistics – General → Tax on Goods Movements → India → Incoming Excise Invoices → Select Fields In this IMG activity, you specify which fields you want in the Incoming Excise Invoices transaction. The settings that you make here apply for all versions of the transaction that you might create. Activities For each field, specify whether you want it to be an input field, a display field, and so on. You can also highlight fields of particular importance. Only the main table is of interest. You do not need to use the other functions, such as Influencing or Screen Groups. Hand Book for SAP Taxation-India 194 Screen group for screen classification Here you can define a string of up to four characters which is available at the screen runtime in the SY-DNGR field. Using this string, you can assign several screens to a common (screen) group which you can then use to ensure that modifications to all the screens in the group are consistent.
  • 98. Hand Book for SAP Taxation-India 195 Screen groups can be maintained in Table TFAWT. This contains a language-dependent text for each screen group within a program (module pool), which describes the group. If you enter a screen group on the attribute screen in the Screen Painter which does not exist for the current program, the system creates an entry for it in Table TFAWT. Field Selection: Modifiable Field Use The name for a modifiable field must be specified in full. For a Dictionary field, this means the table name and the actual field name linked with '-'. Every field name in a screen can be used. A modifiable Dictionary field must belong to a table whose fields are permitted for use in field selection. This is done by assigning the table to the corresponding screen group in the field selection transaction. Indicator: 'Field is ready for input' Specifies that the relevant field is ready for input. Indicator: 'Field is a required entry' Specifies that the relevant field is a required entry. Indicator: 'Field is displayed' Causes the relevant field to be displayed. Indicator: 'Field is hidden' Causes the relevant field to be hidden. Hand Book for SAP Taxation-India 196 Indicator: 'Field is highlighted' Causes the relevant field to be highlighted. 2. Define Processing Modes Per Transaction Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Incoming Excise Invoices → Define Processing Modes Per Transaction In this IMG activity, you specify which processing modes the user can use in the various Incoming Excise Invoice transactions. This way, you can tailor the transaction to what your users have to do. Standard settings The system comes with three standard transactions relating to the Incoming Excise Invoices function (those that are included in the role SAP_CIN). The processing modes available in these transactions are as follows: • J1IEX_C This transaction is for excise clerks: users of this transaction can only capture and display excise invoices. • J1IEX_P This transaction is for excise supervisors: they can change, display, cancel, and post excise invoices. • J1IEX
  • 99. Hand Book for SAP Taxation-India 197 In this transaction, users can capture and post excise invoices, as well as displaying, changing, and canceling them. Activities If the standard settings meet your requirements, do not do anything. Otherwise, you can adjust the standard settings or you can create your own transactions. To do so: 1. In Maintain Transaction, create a new transaction by making a copy of one of the standard transactions. Give the new transaction a transaction code of your choice. 2. In this activity, enter data as follows: o Tcode: The transaction code that you have just created. o Proc. mode: Specify what the users of the transaction will do with the excise invoices. o Active: Select this indicator to activate the setting. Example You might want to create a transaction that only allows users to display excise invoices. Hand Book for SAP Taxation-India 198 Transaction Code A combination of alphabetical and numerical characters forming a code for a business task. Processing Mode Controls what you want to do with the excise invoice or ARE document. Active Activates this setting. Dependencies If you do not set this indicator, this option will not be available when the user runs the transaction.
  • 100. Hand Book for SAP Taxation-India 199 3. Define Reference Documents Per Transaction Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Incoming Excise Invoices → Define Reference Documents Per Transaction In this IMG activity, you specify for each combination of transaction and processing mode which reference documents you want the users to be able to use. Activities If the standard settings meet your requirements, you do not have to do anything. Otherwise, add the entries that you need to the table: For each transaction, make one entry per combination of processing mode and reference document. Activate each entry for it to work. Hand Book for SAP Taxation-India 200 Transaction Code A combination of alphabetical and numerical characters forming a code for a business task. Processing Mode Controls what you want to do with the excise invoice or ARE document.
  • 101. Hand Book for SAP Taxation-India 201 Definition: ARE document A document, in India, that accompanies exports and deemed exports. The documents ensure that you do not have to pay excise duty on these transactions. There are two types of ARE documents, ARE-1 and ARE-3. Union Budget changes – For Deemed export also used the same ARE-1. No more ARE- 3. Reference Document Specifies what document type the excise invoice reference document or the ARE reference document is. Definition : ARE reference document A document, in India, that you refer to when you create an ARE document. You create all AREs using an outgoing excise invoice, which must have the appropriate excise invoice type. 4. Maintain Rejection Codes Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Incoming Excise Invoices → Maintain Rejection Codes In this IMG activity, you define the rejection codes that are used in the Incoming Excise Invoices transaction. Activities For each rejection code, enter a code and a description. You can also specify whether the excise duty in the invoice is to be posted to the CENVAT on hold account, instead of the CENVAT clearing account. Hand Book for SAP Taxation-India 202 Rejection Code Allows you to record why you, for example, rejected or reversed an excise document. If you reject or reverse the document, enter the reason why here. Dependencies You can define additional codes in Customizing, in Maintain Rejection Codes. Rejection Code Description
  • 102. Hand Book for SAP Taxation-India 203 5. Specify Which Movement Types Involve Excise Invoices Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Business Transactions Incoming Excise Invoices → Specify Which Movement Types Involve Excise Invoices In this IMG activity, you specify which movement types relating to goods receipts involve excise invoices. The system uses this information during the goods receipt procedure. When you post a goods receipt using one of the moevement types that you have specified here, the system prompts you to enter the excise invoice number. Note This option cannot be used for processing goods receipts without purchase orders. Hand Book for SAP Taxation-India 204 Movement Type (Inventory Management) Specifies a key for the type of goods movement. Each goods movement (for example, purchase order to warehouse) is allocated to a movement type in the system.
  • 103. Hand Book for SAP Taxation-India 205 Definition: goods movement Inventory Management (MM-IM) A physical or logical movement of materials leading to a change in stock levels or resulting in the consumption of the material. Register Register RG 23A or RG 23C. 6. Excise Invoice Capture against Delivery in the Background. Excise Invoice Capture Against Delivery in the Background Use this IMG activity to select the method of processing Excise Invoices for a particular combination of Plant and Vendor, in the Supplier Self Service system (SRM-SUS). In the table J_1I_BCKEXCSUS, you can process Excise Invoices using the following methods: • Background Processing Set the Create Excise Invoice Automatically indicator to Yes for a particular combination of Plant and Vendor. In this case, the SRM-SUS system automatically processes the Excise Invoices in the background. • Manual Processing Hand Book for SAP Taxation-India 206 Set the Create Excise Invoice Automatically indicator to No for a particular combination of Plant and Vendor. In this case, processing of Excise Invoice takes place manually. You can process Excise Invoices using transaction J1IEX. Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Business Transactions Incoming Excise Invoices → Excise Invoice Capture Against Delivery in the Background Account Number of Vendor or Creditor Alphanumeric key uniquely identifying the document. Plant Key uniquely identifying a plant.
  • 104. Hand Book for SAP Taxation-India 207 Create Excise Invoice Automatically Instructs the system to automatically create an outgong excise invoice immediately you create a commercial invoice or a pro forma invoice. The system creates the excise invoice in the background. Dependencies If you want to make use of this function, you must also define the default plant, excise group, and series groups in Customizing for Excise Duty, by choosing Business Transactions -> Outgoing Excise Invoices -> Maintain Default Excise Groups and Series Groups. B. Sub Contracting 1. Subcontracting Attributes Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Business Transactions → Subcontracting Subcontracting Attributes The subcontracting attributes help determine conditions for a combination of an excise group, a transaction type, and a subtransaction type. The conditions such as the number of excise items per subcontracting challan, if the nonexciseable materials have to be filtered or not when the subcontracting challan is created, the movement type groups for issues and receipts and the hierarchy of determining the excise base value are mentioned here. Requirements Before you continue with this activity, work through the following activities: Hand Book for SAP Taxation-India 208 • Materials Management -> Inventory Management and Physical Inventory -> Goods Issue / Transfer Postings -> Define Screen Layout. For the movement type 541, maintain the field Purchase Order as an optional entry or as a required entry. • Materials Management -> Inventory Management and Physical Inventory -> Output Determination -> Maintain Output Types. Maintain the output type. On the Default Values tab, maintain the dispatch time and the transmission medium. Maintain the print parameter on the Print tab. This output type has to be maintained in this activity here. • Materials Management -> Inventory Management and Physical Inventory -> Output Determination -> Assign Forms and Programs. Maintain the Program, FORM routine, and the form for the output type. • Materials Management -> Inventory Management and Physical Inventory -> Output Determination -> Printer Determination -> Printer Determination by Plant / Storage Location. Enter the output device that you use.
  • 105. Hand Book for SAP Taxation-India 209 Excise Group Specifies the excise group. Excise Transaction Type Identifies the excise transaction. Dependencies The system uses the excise transaction type to determine which G/L accounts have to be posted to. Sub Transaction Type Specifies the subtransaction type. Sub Transaction Type Text Hand Book for SAP Taxation-India 210 Subcontracting Period The maximum number of days that the materials can be with subcontractor without you having to reverse the excise on the CENVAT account. Dependencies This information is used when you create a subcontracting challan to determine on exactly which date the materials have to be returned by. Movement Type group for Issue The movement types relevant for issue of materials are grouped for a combination of transaction type and subtransaction type. Movement Type Group Receipts Receipt of materials are grouped for a combination of transaction type and subtransaction type. Filter non-Excisable material This indicator disallows the materials that are not defined under any Chapter Id onto the challan if it is selected. If it is left empty it allows all the materials to be part of the subcontracting challan. Note: These materials need to be reconciled if they are part of the subcontracting challan. Number of Items in Excise Invoice Shows the maximum number of line items that you are allowed to include in a single outgoing excise invoice.
  • 106. Hand Book for SAP Taxation-India 211 Dependencies This information affects the transactions for creating outgoing excise invoices for factory sales and for other movements. This information is used to split the transfer postings' items into multiple subcontracting challans. Number range number Identifies a number range interval within an object or subobject. Procedure Enter any two-character code. Base Value based on Assessable value / Excise invoice The hierarchy of determining the excise base value from the assessable value table or from the excise invoice is dependent on this indicator. Subcontracting Output Type J1IF is the output type used for subcontracting challan. 2. Maintain Movement Type Groups Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Business Transactions Subcontracting Maintain Movement Type Groups Hand Book for SAP Taxation-India 212 In this IMG activity, you group movement types together to form movement type groups. Movement Type Group Movement Type Groups will be used to club the movement types based on their nature (issues or receipts). These Groups can be defined individually for each subtransaction type of every transaction type. Movement Type (Inventory Management) Specifies a key for the type of goods movement. Each goods movement (for example, purchase order to warehouse) is allocated to a movement type in the system. Special Stock Indicator Specifies the special stock type.
  • 107. Hand Book for SAP Taxation-India 213 If you need to separately manage certain stock (for example, consignment stock) of a material, the stock type in question is defined using this indicator. C. Excise Registers 1. Specify SAPscript Forms Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Business Transactions Excise Registers → Specify SAPscript Forms In this IMG activity, for each of your company codes, you specify which SAPscript forms the system prints the excise registers with. Standard settings Country Version India includes a number of sample SAPscript forms and printing programs, which you can use as follows: Reg. name Lay. no. Form Tcode/Prog RG 23A Part I 1 J_2IRG23A_PART1 J_2IRAP1 RG 23C Part I 1 J_2IRG23C_PART1 J_2IRCP1 RG 23A Part II 1 J_2IRG23A_PART2 J_2IRAP2 RG 23C Part II 1 J_2IRG23C_PART2 J_2IRCP2 PLA 1 J_2I_PLA J_2IPLA RG 23 D 1 J_2I_RG23D J_2IRG23 RG 1 1 J_2I_RG1 J_2IRRG1 RT 12 1 J_2I_RT12_ABSTRA J_2IRT12 RT 12 1 J_2I_RT12_ABSTRA J_2IRT12 RT 12 1 J_2I_RT12_3 J_2IRT12 Hand Book for SAP Taxation-India 214 The layout description can be left blank or an appropriate description maybe filled in. You may not change the register name. You can have your own layouts and maintain the name here. If the output device and number of copies are maintained it is automatically picked up for printing. Company Code The company code is an organizational unit within financial accounting. Register name Layout number Form Name
  • 108. Hand Book for SAP Taxation-India 215 Name of a form. The name of a form has a maximum length of 16 characters and can include upper case letters and numeric characters. It must begin with a letter. A form in SAPscript is used for page layout. The form contains various elements, which are used for layout control of the individual pages and also contain layout information for texts which are to be output on the individual pages. To enable text formatting, the appropriate form must be assigned to the text. In the SAPscript standard text editor this occurs via a menu selection. A list of all the forms available in the system is displayed, from which a form can then be selected by the user. A form definition contains the following elements: Header data: This is general information about the form, such as the user ID of the person who created it, a short text describing the form, and global control data, such as font used and page format. Paragraphs: Paragraphs are the real layout elements in SAPscript. Every text entered in the editor consists of various paragraphs. The beginning of a paragraph is indicated by a paragraph tag in the left column of the editor. Paragraph names and attributes are defined in the form. Characteristics or attributes which can be defined for paragraphs include text alignment, line spacing, font used etc. Character strings: Character strings are layout elements relevant for a section of text within a paragraph. They are inserted in the continuous text. The beginning of a section of text is marked with the character combination <XX> and the end with </>. Here XX is the name of the character string, which is defined in the form. Hand Book for SAP Taxation-India 216 Windows: Windows represent logical units. Although they do not have a physical position on the page, they have a name which reflects the purpose of the text to be displayed in the window. For example, an address window, a window for a letter header etc. A window type is assigned to every window. The most important type is the main window. "Continuous" text appears in the main window. The text can therefore extend over the main windows of several pages. The other window types, on the other hand, do not allow text which does not fit in the window to be continued in the window on a subsequent page. Pages: One or more pages which are to appear in the form are defined here. The attributes of a page include the name of the next page and the type of page numbering. The user determines the page sequence by specifying the next page and defining the first page of the form in the header data. Page windows: A page window is defined by specifying the position and size of a form window on a form page. The page window describes the position of a window on a specific page of the form and therefore the area in which text can be output in the form. Layout description
  • 109. Hand Book for SAP Taxation-India 217 E. Utilization a) Utilization Determination Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Business Transactions Utilization → Utilization Determination In this IMG activity, you specify which CENVAT accounts are to be debited by the Fortnight Utilization of CENVAT report: When the report calculates how much excise duty you must remit, it automatically proposes which CENVAT accounts the duty should be debited to. Here, you specify those defaults. You can either: • Debit all the excise duty to one account • Debit the excise duty to more than one account, in which case you specify which percentage is to be debited to each account Example If you want 50% of basic excise duty (BED) to be debited to the RG 23A account and the remaining 50% to the RG 23C account, you would make the following settings: Acct name BED perc. RG 23A BED account 50 Hand Book for SAP Taxation-India 218 RG 23C BED account 50 Alternatively, to debit all of the BED to the RG 23A account, and then RG 23C account, if there is not enough in the RG 23A account, you would make the following settings: Acct name BED perc. + RG 23A BED account X RG 23C BED account X When you come to run the report, the system takes the RG 23A account because it is the first one you have entered. If this account does not cover the BED, the system takes the RG 23C account instead.
  • 110. Hand Book for SAP Taxation-India 219 Excise Group Specifies the excise group. Account Name Account name specifies the name of the account used for different transactions. Example RG23ABED BED percentage Single-Character Indicator b) Maintain Minimum Balances for Excise Accounts Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Business Transactions Utilization → Maintain Minimum Balances for Excise Accounts In this IMG activity, you can maintain minimum balances in your excise accounts. When the balance in these accounts during utilization falls below this level, the system automatically utilizes funds in the PLA account. Activities Hand Book for SAP Taxation-India 220 Maintain the minimum balance amount for the excise accounts. If you have more than one excise group, you can maintain different minimum balances. Excise Group Specifies the excise group. Account Name Account name specifies the name of the account used for different transactions. Example RG23ABED Amount in document currency Line item amount in document currency.
  • 111. Hand Book for SAP Taxation-India 221 Procedure During document entry, enter the amount manually. In the last line item, you can enter a "*" - the amount of the final line item is then the balance of all the line items previously entered. Dependencies Amounts you enter may be changed automatically by the system if the following postings are made: • Tax adjustments • Cash discount adjustments during net postings. VII. Tools A. Long Texts Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Tools Long Texts In this IMG activity, you define the different types of long texts that you want to be able to maintain in the various excise transactions. There is no limit to the number of types of long texts you can define. Activities For each long text, you have to specify which transactions the long texts are for, so fill out the Object field accordingly: Hand Book for SAP Taxation-India 222 Transactions involving Code Excise invoices J1IA Excise JVs J1IH Subcontracting 57F4 J1IF Factory sales J1II Fortnightly payment J1IU For example, if you want to create a long text for the Incoming Excise Invoices transaction, enter J1IA. Then give the long text an ID and description of your choice.
  • 112. Hand Book for SAP Taxation-India 223 Texts: Application Object In business applications, a text is not considered an independent object. A text can only exist if it has a superior reference object. A material inspection text, for example, only exists if there is a corresponding material. The application object of a text is therefore the global environment in which a text exists. Short Text Default ID for texts to be included You can use the INCLUDE command to insert the contents of another text in your text. In order to fully identify the text you wish to insert, it is necessary to enter a text ID. If the ID is not specified with the INCLUDE command, the ID specified here is used, otherwise the ID of the calling text. Display text name in editor header This field defines whether the name of a text is displayed in the header line of the SAPscript text editor together with other information. <Text type> <Operation>: <Text name> <Text> Language <Key> • The text type is the long text for the text ID, which must be maintained in Table TTXIT. • The operation is defined by calling the text editor or by the momentary workstep within the text editor (Change, Display, Select, Insert). • The text name can be displayed or suppressed with the field TDSHOWNAME in Table TTXID. Hand Book for SAP Taxation-India 224 • An additional text can, optionally, be specified from the program application when the text editor is called. • The language key is the language assigned to the text. B. Number Ranges Transaction code J1I9 IMG menu Logistics – General → Tax on Goods Movements → India → Tools Number Ranges You can maintain the number ranges for all CIN Number range objects using this transaction Activities Please maintain the number ranges for the folllowing objects The no nr has to be '01' for all 1. j_1iintnum At an Excise group 1. j_1irg23a1 2. j_1irg23a2 3. j_1iRG1 4. j_1irg23c1 5. j_1irg23c2 6. j_1ipla2
  • 113. Hand Book for SAP Taxation-India 225 7. j_1iintpr2 8. j_1irg23d 9. j_1irg1_t ( material level) 10. j_1iconpla ( if Consolidated PLA is used ) At Series group 1. j_1iexcloc 2. j_1iexcexp 3. j_1idepinv 4. j_1i57Fc ( 57F Challans ) Hand Book for SAP Taxation-India 226
  • 114. Hand Book for SAP Taxation-India 227 Hand Book for SAP Taxation-India 228
  • 115. Hand Book for SAP Taxation-India 229 C. Message Control Transaction code SPRO IMG menu Logistics – General → Tax on Goods Movements → India → Tools Message Control In this activity, you can specify whether a given message should appear as a warning message or an error message. Activities Enter each message that you want, specifying whether it should apply to one user or all users. Hand Book for SAP Taxation-India 230
  • 116. Hand Book for SAP Taxation-India 231 Application Area The indicator denotes the application area to which the error message belongs. Procedure Display the possible input values with F4. If you want a message to be output, you must specify the message class indicator in a program as follows: <program_name> MESSAGE ID <message_class_ID> Message number Transaction Code A combination of alphabetical and numerical characters forming a code for a business task. User Name in User Master Record Message Type Message type (E,I,W,...) Hand Book for SAP Taxation-India 232 sundar $$$$

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