Taxation - Tax Procedure (Config) - Part 1 Basics

Prerequisites

To Implement Taxation one should have basic knowledge of different Taxes Levied and Calculation Process.

For example :- Excise, VAT, Sales Tax etc.

Configuring Tax Procedure

Financial Accounting (New) > Financial Accounting Global Settings (New) > Tax on Sales/Purchases > Basic Settings > Check Calculation Procedure

Under this we have three option we will check one-by-one in the reverse order.

Access Sequences

Define Condition Types

Define Procedures

Define Procedures

The procedure we are going to discuss here is TAXINJ

Select Procedure TAXINJ and go to control data

In Control Data we have 16 fields to help us configure the Tax procedure.

Step - Number that determines the sequence of the conditions within a procedure.

Counter - Access number of the conditions within a step in the pricing procedure.During automatic pricing, the system takes into account the sequence specified by the counter.

Condition Type - The condition type is used for different functions. In pricing, for example, the condition type lets you differentiate between different kinds of discount; in output determination, between different output types such as order confirmation or delivery note; in batch determination, between different strategy types.

Description - Description of the Condition Type

From - Condition step, the value of which is the basis for percentage surcharges.If you specify a "to" reference step at the same time, the condition values of the two steps specified and the conditions values of the steps in between are totaled. In this case, percentage surcharges are calculated on the basis of the total.

To - Condition step up to which the condition values of the previous steps are totalled. Percentage surcharges are calculated on the basis of the total. If you specify a "from" reference step at the same time, the condition values of the two steps specified and the condition values of the steps in between are totalled.

Manual -  Conditions, that are given this indicator in the pricing procedure, are only included in determination (price determination, output determination, batch determination) either if they are entered manually, for example, on the condition overview screen in Pricing or if they are transferred from an external process, such as costing.

Required - Indicates whether the condition is mandatory when the system carries out pricing using this pricing procedure

Statistical - This indicator causes a surcharge or discount to be set in the document statistically (that is, without altering the value).

Print - Controls issue of condition lines when printing documents such as order confirmations or invoices.

Subtotal - Controls whether and in which fields condition amounts or subtotals (for example, a customer discount or the cost of a material) are stored.

Requirement - If the requirement is fulfilled (SY-SUBRC = 0), then output determination also takes into consideration output type or the access sequence, for which the requirement has been specified.

Calculation Type (Condition Formula Type) -Alternative formula to the formula in the standard system that determines a condition.

Base Type - Formula for determining the condition basis as an alternative to the standard

Account Key - Key that identifies different types of G/L account.

Account Key Accruals - Key which identifies various types of G/L accounts for accruals or provisions.