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CIN TAXINN Procedure An

Overview
August 2, 2012 | 5,446 Views |

Sandeep Kashigaonkar
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FIN (Finance)

SAP ERP cin enterprise resource planning sap erp financials taxinn

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Many mes 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 calcula ons.
Once you know how it works, you will start ge'ng interest in it.

Here I am wri ng this blog just for those who just entered in SAP FI. I am not
going to write whole congura on steps here, just an overview on the TAXINN
procedure and how the system calculates excise duty and taxes.

Here we go.

Transac on Code: OBYZ

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Transac on Code: OBYZ

Calcula on Procedures contains necessary specica ons for the calcula on

and base for calcula ng and pos ng of taxes on sales/purchases. Many tax
calcula on processes have already been dened in the standard SAP system
for certain countries. For India its TAXINN and TAXINJ. TAXINN is a tax
procedure which follows condi on based record (not like percentage/formula
base in TAXINJ).

Here rst you need to check whether TAXINN procedure is available in system
or not.

Condi on Type is the condi on calcula on rule. It denes on which base

amount tax/surcharge/discount is calculated and this base is dened in
calcula on procedure. You also need to check whether all required Condi on
Types are there in SAP system or else you need to add missing condi on type
in SAP system. There is a rela on between condi on type and access
sequence. The access sequence is men oned in condi on type which calls the
accesses maintained in that par cular access sequence while maintaining
condi on record.

Access Sequence contains deni on of which combina ons of elds are to be

taken into considera on to decide the Condi on Records. Say for instance
Plant/Vendor/Material, which means if a user is crea ng a purchase order for
material X with vendor A in Plan P he can dene the tax rate on this
basis. Below the tabular explana on;

Material Vendor Plant Tax Rate

X A P 10%

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X A P 10%

Y A P 5%

X A B 5%

Here combina on of Material, vendor and plant is one of the access

maintained in access sequence and tax rate is condi on 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 Calcula on Procedure

Transac on Code: OBBG

Assignment of tax procedure TAXINN to country India

Specifying Excise Accounts per Excise Transac on

Here you specify which excise accounts (for excise duty and CENVAT) are to
be posted to for the various transac on types. Enter all the accounts that
are aected by each transac on type. This denes the credit and debit
sides of accounts for dierent transac on types.

Transac on types

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Accounts specica on

Specifying G/L Accounts per Excise Transac on

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Specifying G/L Accounts per Excise Transac on

Transac on Code : NA

Path : Logis cs General > Tax on Goods Movements > India > Account
Determina on > Specify G/L Accounts per Excise Transac on

Here we maintain GL Accounts for Excise transac ons for automa c

account determina on. This will dene which GL account to be posted for
specied du es for every transac on type. There may be sub transac on
type in certain cases, for those also we need to maintain GL accounts.

Deni on of TAX Code

Transac on 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 transac on and all du es and tax
calcula ons are done by the system. While dening tax code for TAXINN
you just need to dene TAX Code, TAX Type and its Descrip on. Please
note do not men on tax percentage in its descrip on as there will not be
any access to end user to change the descrip on (in case Govt. changes
the tax rate in budget). In budget government may announce change in tax
rate or du es, user need to change condi on records only not the tax

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rate or du es, user need to change condi on records only not the tax
code. Maintenance of condi on record is men oned below in separate
point.

Here there is no need to men on Tax Percentage Rates.

Assignment of Tax Code to Company Code

We need to assign the tax code to company code to make it eec ve in

that par cular company code.

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Maintain Condi on Records

Transac on Code: FV11

Here user need maintain the required condi on record for par cular
condi on type (for instance we will maintain condi on record for Basic
Excise Duty).

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

Maintain condi on record.

Similarly you need maintain the all the Condi on Records which are
applicable to your business process. Hence the end user can change the
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Similarly you need maintain the all the Condi on Records which are
applicable to your business process. Hence the end user can change the
condi on records as and when it is required, FV11 is an end user
transac on.

Note To calculate du es correctly you must have maintained Vendor,

Customer, Material, Plant and like in transac on code J1ID to which you
want to calculate excise duty.

This way the system calculates the du es and taxes in the system.

I had tried to cover an overview required for a Func onal Consultant at

beginner level. It might be incomplete. I request experts to contribute to
the blog, so that many SAP func onal consultants can be beneted from
this.

Regards,

Sandeep Kashigaonkar

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