Tax Procedure vs MM Pricing Procedure

[Former Member]

Introduction:

In Indian taxation, we have different structure for calculating tax with vendor inward invoice. Few are discussed here.

Case 1: Freight / discount NOT included for Excise duty & VAT (Normal)

Case 2: Freight / discount included for Excise & VAT (Normal)

Case 3: Freight / discount NOT included for Excise but included for VAT (Non-Standard)

Case 4: Fetch tax value (deductible) from Tax procedure to MM Pricing Procedure

Case 5: Fetch tax value (non-deductible) from Tax procedure to MM Pricing Procedure

Case 6: Pass excise value from MM Pricing Procedure to Tax Procedure

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Reference for Case 3:

As per SAP Note 1559145 (3rd Question)

1. Q. Tax element to be calculated on a differential base.
2. A. Passing alternate base for Tax calculation. For E.g. # VAT to be calculated on Base + Excise + Freight. Use subtotals 4 or 6 against the Freight condition in PO. Assign alternate base value routine 362 or 363 against the condition whose base value is to be altered.

Base type in tax procedure:

Routine 362: Refers to ‘subtotal’ MM pricing procedure, includes condition values ‘with subtotal 4’ and excludes condition values ‘with subtotal 6’

Routine 363:  Refers to ‘subtotal’ MM pricing procedure, includes condition values ‘with subtotal 6’ and excludes condition values ‘with subtotal 4’

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Config in MM Pricing procedure: M/08

Case 1 : FRA1 - Freight condition not included for excise & VAT :subtotal 'blank'

Case 2 : ZF10 - Freight condition included for excise & VAT :subtotal '4'

Case 3 : R010 - Discount condition not included for excise but included for VAT :subtotal '6'

Case 4 : JEXS - To fetch deductible tax value in tax procedure to pricing procedure

Case 5 : NAVS - To fetch non-deductible tax value in tax procedure to pricing proocedure

Case 6 : JEXC - To pass manual excise percentage or value to tax procedure

Config in Tax procedure: OBYZ

Case 2 : BASB : Maintain routine 362 in Base type

Case 3 : ZVAT : Maintain routine 363 in Base type

Case 4 : Account Key VS1 & IN1 for excise & tax conditions respectively for deductible taxes (see below screen shot in OBCN for VS1 & IN1)

Case 5 : Account key NVV for VAT conditions for non-deductible taxes (see below screen shot in OBCN for NVV)

Note : config for account key NVV & IN1

Tcode : OBCN or Financial Accounting (New) -> Financial Accounting Global Settings (New) -> Tax on Sales/Purchases -> Check and Change Settings for Tax Processing -> Execute : Check below setting for NVV (non deductible) & IN1 (deductible)

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Test case:

Case 1: Freight / discount NOT included for Excise duty & VAT (Normal)

Freight is statistical or could be accounted to freight vendor separately

PO price : INR 100 per 1 EA                 (PB00)

Discount : INR 1                                  (FRA1)

ED         : PB00

VAT       : PB00 + ED

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Case 2: Freight / discount included for Excise duty & VAT (Normal)

PO price : INR 100 per 1 EA                 (PB00)

Freight    : INR 1                                  (ZF10)

ED         : PB00 + ZF10

VAT       : PB00 + ZF10 + ED

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Case 3: Freight / discount included for VAT ONLY (Non-Standard)

PO price : INR 100 per 1 EA                 (PB00)

Discount : INR -1                                 (R010)

ED         : PB00

VAT       : PB00 + R010 + ED

Excise is calculated on 100 (without discount) and VAT is calculated on 100 - 10 + 20 + 0.40 + 0.20 = 110.60 x 5% = 5.53

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Case 4: Fetch tax value (deductible) from Tax procedure to MM Pricing Procedure

VAT and excise conditions are configured deductible. Rs. 26.63

VAT and excise condition values are transferred to condition JEXS in pricing procedure. Rs. 26.63

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Case 5: Fetch tax value (non-deductible) from Tax procedure to MM Pricing Procedure

VAT is configured non-deductible. Tax : Rs. 6.03

VAT is transferred to condition NAVS in pricing procedure. Tax : Rs. 6.03

VAT and excise condition values are transferred to condition JEXS in pricing procedure. Rs. 26.63

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Case 6: Pass excise value from MM Pricing Procedure to Tax Procedure

Value or percentage entered in JEXC in pricing procedure is transferred to tax procedure JMOP

JMOP value is copied from JEXC in pricing procedure

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Hope the document is useful