12/6/2014

CIN - TAXINN Procedure - An Overview | SCN

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SAP ERP Financials

CIN - TAXINN Procedure - An Overview

Posted by Sandeep Kashigaonkar in SAP ERP Financials on Aug 2, 2012 1:42:20 PM
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Many times I have seen people who just entered in SAP have a kind of fear of CIN (Country India Version), even I was one of them.
To overcome this fear we just need to put some logic and understand how system does calculations. Once you know how it works,
you will start getting interest in it.
Here I am writing this blog just for those who just entered in SAP FI. I am not going to write whole configuration steps here, just an
overview on the TAXINN procedure and how the system calculates excise duty and taxes.
Here we go.
Transaction Code: OBYZ
postpost
Calculation Procedures contains necessary specifications for the calculation and base for calculating and posting of taxes on
sales/purchases. Many tax calculation processes have already been defined in the standard SAP system for certain countries. For
India its TAXINN

and TAXINJ. TAXINN is a tax procedure which follows condition based record (not like percentage/formula

base in TAXINJ).
Here first you need to check whether TAXINN procedure is available in system or not.

Condition Type is the condition calculation rule. It defines on which base amount tax/surcharge/discount is calculated and this
base is defined in calculation procedure. You also need to check whether all required Condition Types are there in SAP system or
else you need to add missing condition type in SAP system. There is a relation between condition type and access sequence. The
access sequence is mentioned in condition type which calls the accesses maintained in that particular access sequence while
maintaining condition record.
Access Sequence contains definition of which combinations of fields are to be taken into consideration to decide the Condition
Records. Say for instance Plant/Vendor/Material, which means if a user is creating a purchase order for material X with vendor
A in Plan P he can define the tax rate on this basis. Below the tabular explanation;

Material

Vendor

Plant

Tax Rate

10%

5%

5%

Here combination of Material, vendor and plant is one of the access maintained in access sequence and tax
rate is condition record.
You can create the new accesses in Access Sequence as per your requirement. Below are some examples
of access sequence;

Assignment of Country to Calculation Procedure

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Transaction Code: OBBG

Assignment of tax procedure TAXINN to country India

Specifying Excise Accounts per Excise Transaction

Here 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. This defines the credit
and debit sides of accounts for different transaction types.
Transaction types

Accounts specification

Specifying G/L Accounts per Excise Transaction

Transaction Code : NA
Path : Logistics General > Tax on Goods Movements > India > Account Determination > Specify G/L
Accounts per Excise Transaction
Here we maintain GL Accounts for Excise transactions for automatic account determination. This will define
which GL account to be posted for specified duties for every transaction type. There may be sub

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transaction type in certain cases, for those also we need to maintain GL accounts.

Definition of TAX Code

Transaction code: FTXP
TAX Code, on the basis of which the system calculates excise duty and tax. An end user just enter the tax
code in a transaction and all duties and tax calculations are done by the system. While defining tax code for
TAXINN you just need to define TAX Code, TAX Type and its Description. Please note do not mention tax
percentage in its description as there will not be any access to end user to change the description (in case
Govt. changes the tax rate in budget). In budget government may announce change in tax rate or duties,
user need to change condition records only not the tax code. Maintenance of condition record is
mentioned below in separate point.

Here there is no need to mention Tax Percentage Rates.

Assignment of Tax Code to Company Code
We need to assign the tax code to company code to make it effective in that particular company code.

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Maintain Condition Records

Transaction Code: FV11
Here user need maintain the required condition record for particular condition type (for instance we will
maintain condition record for Basic Excise Duty).

Select Access Sequence (You can select as per your requirement)

Maintain condition record.

Similarly you need maintain the all the Condition Records which are applicable to your business process.
Hence the end user can change the condition records as and when it is required, FV11 is an end user
transaction.
Note To calculate duties correctly you must have maintained Vendor, Customer, Material, Plant and like in
transaction code J1ID to which you want to calculate excise duty.
This way the system calculates the duties and taxes in the system.
I had tried to cover an overview required for a Functional Consultant at beginner level. It might be
incomplete. I request experts to contribute to the blog, so that many SAP functional consultants can be
benefited from this.
Regards,
Sandeep Kashigaonkar

6087 Views

Products: sap_erp_financials Topics: enterprise_resource_planning Tags: cin, taxinn

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6 Comments
PRIYA KAUSHIK Aug 4, 2012 1:00 AM

thanx sandeep ,,,

its really good
Like (0)

Sandeep Kashigaonkar Aug 4, 2012 11:13 AM (in response to PRIYA KAUSHIK)

Welcome Priya.
Like (0)

Sandeep a Aug 25, 2014 5:38 PM (in response to Sandeep Kashigaonkar)

Hi
if you have sap Cin compalete material please share to
sandeepashokkumar@gmail.com
Like (0)

Devender Kumar Jul 14, 2014 2:08 PM

Hi Sandeep,
As Per Business Requirement, i have created new Condition Table in M/03 with Plant/Tax code
combination & maintained condition in FV11.
But during Purchase order processing, Condition not showing in Tax code Condition.
In Plant code field Value is showing as ? mark,
Please provide me Enhancement or User exit for filling missing value in FV11 condition Records.
Regards
Like (0)

Lakshmi Sama Jul 14, 2014 3:12 PM

Hello Sandeep,
Thanks alot for sharing such a good document.
Regards,
Lakshmi S
Like (0)

PREETI KASHYAP Sep 19, 2014 1:43 PM

Thanks Sandeep.
This is really good for quick reference.
Regards
Preeti
Like (0)

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