When you enter a purchasing
document, for example, a purchase order, the R/3 System automatically calculates
the applicable excise duties using the condition technique.
Features :
The standard system comes with two tax calculation procedures. TAXINN is only supports
condition-based excise determination, whereas TAXINJ supports condition-based
excise determination and formula-based excise determination. Both tax procedures
contain condition types that cover all of the excise duties and sales taxes
applicable.
Since the exact rates of excise duty can vary on a large number
of factors, such as which vendor you purchase a material from, or which chapter
ID the vendor stocks the material under, you create condition records for every
sort of excise duty.
When you come to enter a purchasing document, the system
applies the excise duty at the
rates you have entered in the condition records.
Customizing :
Make the settings in Customizing Basic -> India -> for Logistics –
General, by choosing Taxes on Goods Movements Account -> Excise Duties Using
Condition Technique and …-> Settings Determination.
These activities
include one activity where you define a tax code for condition-based excise
determination.
Master Data - Create condition records for all excise
duties that apply, and enter the tax code for condition-based excise
determination in each.
Day-to-Day Activities - When you enter a purchase
order or other purchasing document, enter the tax code for condition-based
excise determination in each line item. The system then calculates the excise
duties using the condition records you have created.
When the ordered
materials arrive, you post the goods receipt and the excise invoice. The system
posts the excise duty to the appropriate accounts for deductible input taxes
when you enter the excise invoice.
Creating Condition Records for Excise
Duty
1. In the command
field, enter FV11 and choose .
2. Enter the condition type that you want to
create a condition record for and choose .
The Key Combination dialog box
appears.
3. Select the combination of objects that you want to create the
condition record for. On the dialog box, Control Code means "chapter ID." So,
for example, to create a condition record for a tax that applies to a
combination of country, plant, and chapter ID, select Country/Plant/Control
Code.
4. Choose .
5. Enter data as required. - In the Tax Code field,
enter the dummy tax code that you have defined.
6. Save the condition
record.
Formula-Based Excise Determination - When you execute a business
transaction involving materials that are subject to excise duty, the system
automatically calculates the duty for you.
In order for the system to be
able to determine which rate of excise duty to apply, you must have maintained all the data on the Excise
Rate Maintenance screen, which you can Master Data®access from the SAP Easy
Access screen by choosing Indirect Taxes Excise Rate Maintenance.
You
maintain the following types of data:
- Plant master data
You assign each
of your plants an excise duty indicator. You can use the same indicator for all
the plants with the same excise status from a legal point of view, such as all
those that are in an exempt zone. See also the information about manufacturers
that are only entitled to deduct a certain portion of the duty (see Partial
CENVAT Credit).
- Vendor master data
For each of your vendors with the
same excise status from a legal perspective, you define an excise duty
indicator. You must also specify the vendor type – for example, whether the
vendor is a manufacturer, a depot, or a first-stage dealer. You must also stipulate if the vendor qualifies as a small-scale industry.
For each permutation of plant indicator and vendor indicator, you then create a
final excise duty indicator.
- Customer master data
Similarly, you assign
the same excise duty indicator to each of your customers that share the same
legal excise status.
Again, for each permutation of plant indicator and
customer indicator, you then create a final excise duty indicator.
- Material
master data
Each material is assigned a chapter ID.
- Excise tax rate
For every chapter ID and final
excise duty indicator, you maintain the rate of excise duty.
If your business
only qualifies for partial CENVAT credit, you must
customize your system accordingly.
Let us consider an example to
illustrate how the system determines which rate of excise duty
to apply to a material. Assume you are posting a sale
of ball bearings to a customer. The system automatically determines the rate of
excise duty as follows:
1. Looks up the customer master data to see what
status you have assigned the customer.
Let's assume you've assigned the
customer status 3.
2. Looks up the plant master data to see what status you
have assigned the plant. Similarly, your plant has status 2.
3. The system
looks up the table under Excise Indicator for Plant and Customer to see what the
final excise duty indicator is for customer status 3 and plant status 2: It is
7.
4. The system determines the chapter ID of the ball bearing for the
plant.
Let’s assume the chapter ID at plant for the ball bearings is
1000.01.
5. Finally, the system looks up the table under
Excise Tax Rate to see what rate of duty applies to
chapter ID 1000.01 under
status 7.
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.
- Create a new
tax code, and set the tax code type to V (input tax). Do not make any other
settings for it.
- 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.
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.
The standard system
comes with sample settings for the tax calculation
procedures and pricing procedures.
Use these settings as a basis for your
own.
IMG > Logistics - General > Tax On Goods Movement > 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.
- 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 set off)
- MWS
(central sales tax)
- MW3 (local sales tax)
- ESA (service tax)
- ESE (service
tax expense)
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 sub transaction
types, enter the accounts for each sub transaction type as
well.
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. 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 hld
account
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 - 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. Configure setting needed
to be done in order to get the Excise Details Screen in Material
Master.
Even though this functionality is available in enterprise
version, a small configuration step has to be made in Screen Sequences for
Material Master.
Following document helps you to do this
configuration.
- Material Master Logistics General
1. Go to IMG Define
Structure of Data Screen for each Configuring the Material master Screen
Sequence.
2. Select your screen sequence. Usually it would be 21. Select the
same and click on Data Screen in the left frame.
3. Once the data screens are
exhibited, select data screen no. 15, ie. SSq. 21and Scrn 15, which is “Foreign
Trade: Import Data”. Select the same and click on Sub screens in the left
frame.
4. Go to the last sub screen i.e. 21-15-6 - SAPLMGD1- 0001 and select
the same. Click on tab view sub screen and ensure that the sub screen is
blank.
5. Now in the last sub screen i.e. no.6 you delete SAPLMGD1 – 0001 and
instead add SAPLJ1I_MATERIAL_MASTER and in the screen no. 2205.
6. Save the
setting.
7. Create a Material Master and check whether in Screen Foreign
Trade
– Import, Excise related sub screen appears.
