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CIN – TAXINN Procedure – An Overview

August 2, 2012 | 8,048 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.

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Here I am wri ng this blog just for those who just entered in SAP FI. I am not going to
write whole configura 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

Calcula on Procedures contains necessary specifica 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 defined 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 first you need to check whether TAXINN procedure is available in system or not.

Condi on Type is the condi on calcula on rule. It defines on which base amount
tax/surcharge/discount is calculated and this base is defined 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 defini on of which combina ons of fields 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 define the tax rate on this basis.
Below the tabular explana on;

Material Vendor Plant Tax Rate

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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
affected by each transac on type. This defines the credit and debit sides of
accounts for different transac on types.

Transac on types

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Accounts specifica 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 define which GL account to be posted for specified 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.

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Defini 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 defining tax code for TAXINN you just need to define
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 code. Maintenance of condi on record is
men oned below in separate point.

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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 effec 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.

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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 benefited from this.

Regards,

Sandeep Kashigaonkar

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10 Comments
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PRIYA KAUSHIK

August 3, 2012 at 11:00 pm

thanx sandeep ,,,

its really good

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Sandeep Kashigaonkar Post author

August 4, 2012 at 9:13 am

Welcome Priya.

Sandeep a

August 25, 2014 at 3:38 pm

Hi

if you have sap Cin compalete material please share to

Devender Kumar

July 14, 2014 at 12:08 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

Lakshmi Sama

July 14, 2014 at 1:12 pm

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Hello Sandeep,

Thanks alot for sharing such a good document.

Regards,

Lakshmi S

Preeti Kashyap

September 19, 2014 at 11:43 am

Thanks Sandeep.

This is really good for quick reference.

Regards

Preeti

Chirag Panchal

February 29, 2016 at 5:29 am

Good document. Thanks Sandeep.

Raj A

June 3, 2016 at 6:40 pm

Hi Thank you

IDES which I practice doesnot have TAXINN and TAXINJ. How to configure it.

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Govind Gajeli

February 14, 2017 at 12:19 pm

Hi

Thanks You

Aditya prasad Das

May 9, 2017 at 2:11 pm

Thanks sandeep for this valuable information,i am a beginner in sap,now i have cleared
so many doubts which is always roaming in my mind.

one thing is there we need to create so many condition types for sales and
purchases.and we are maintaing theses all in the calculation procedure.so my question
is do we need to maintain these conditon types differently for sales and differently for
purchases.

like for purchase we are using base as BASB and for sales we are using PR00 price.

if yes,can’t we maintain all conditions in one place.

Thanks

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