SAP, SAP MM, SAP Materials Management

Tax Procedure vs MM Pricing Procedure

Introduction:

In Indian taxation, we have different structure for calculating tax with vendor inward invoice

Reference for Case 3:

As per SAP Note 1559145 (3rd Question)

A. Q. Tax element to be calculated on a differential base.

B. 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’

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

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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)

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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

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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

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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

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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

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JMOP value is copied from JEXC in pricing procedure

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