TAXINN – Configuration

S.No SD related Activity Transaction Code

1 Condition Type JMOD needs to be assigned with Access sequence JEXC and Condition class needs to be changed to A - Discount V/06
or Surcharge
2 Whatever VAT condition type is applicable, needs to be maintained with Access sequence JLST (Ex: JIN6 Etc) V/06
3 Whatever CST condition type is applicable, needs to be maintained with Access sequence CLST (Ex: JIN7 Etc) V/06
4 Condition Type JASS needs to be assigned with Access sequence JEXC and Condition class and Condition Type needs to be V/06
changed to "A"
5 In SD Pricing Procedure, the JMOD condition type needs to be maintained with the STEP as that of UTXJ condition type and V/08
Manual tick & routine 355 needs to be removed.
6 In SD Pricing Procedure, the UTXJ condition type needs to be removed. V/08
7 For SD Pricing Procedure, if J1IIN Excise Invoice will be created, the JASS condition needs to be included with Statistical & V/08
Mandatory field ticked and STEPs needs to be maintained with the same Step as that of JMOD condition.
8 In SD Pricing Procedure, the VAT & CST conditions (EX: JIN6 & JIN7) the Manual tick & Statistical tick needs to be removed V/08
9 Tax relevancy for Master records needs to be configured for Customer Taxes & Material Taxes (EX: JIN6 , JIN7 Etc) instead of SPRO
UTXJ condition type.
10 While maintaining TAXINN procedure in Excise defaults, make sure "A/R BED condition" maintained with JEX2 and "BED Perc" SPRO
maintained with JMOD.
11 If JMAN condition (Manual Excise) is used. In such cases, Condition exclusion group needs to be maintained for JMAN & JMOD. SPRO
In corresponding pricing procedure, the JMAN condition needs to be maintained with the step as that of JMOD and counter as
2.
12 Tax Classification needs to be maintained for the newly maintained Tax category in Customer master and Material Master XD02 & MM02
13 Condition record needs to be maintained for VAT, CST, JMOD, JASS condition types VK11
14 User Exit: J_1I7_USEREXIT_CALC_EXC_BASE should be implemented.
15 User Exit: J_1I7_USEREXIT_DUTY_IN_EXPORT needs to be implemented.
16 If required Output forms, Interface Z transaction needs to be changed as per TAXINN and the Open Orders, Open Scheduling
Agreement & Open Invoices needs to be closed

Documented by: Ramkumar Lalaram, CSC.

 TAXINN – Configuration

TAXINJ:

 TAXINJ is a old formula based tax procedure commonly used up to initial phases of SAP R/3 4.7 but later implementations were with TAXINN

 TAX Code play a vital role as Tax Rates are maintained at TAX Code level (Transaction FTXP)

 This is more complex when compared to TAXINN

TAXINN:

 TAXINN is a condition based tax procedure

 Even a single TAXCODE may be sufficient for different Tax rates

 Tax Condition record should be maintained (Transaction FV11, VK11)

TAXINN is a tax procedure used in determination of taxes like Excise, VAT, CST, LST, Service Tax etc..

To migrate to GST, the system should have TAXINN Tax procedure as mandated by SAP.

Documented by: Ramkumar Lalaram, CSC.

 TAXINN – Configuration

1. Condition Type JMOD needs to be assigned with Access sequence JEXC and Condition class needs to be changed to A - Discount or
Surcharge

Documented by: Ramkumar Lalaram, CSC.

 TAXINN – Configuration

2. Whatever VAT condition type is applicable, needs to be maintained with Access sequence JLST (Ex: JIN6 Etc)

Documented by: Ramkumar Lalaram, CSC.

 TAXINN – Configuration

3. Whatever CST condition type is applicable, needs to be maintained with Access sequence CLST (Ex: JIN7 Etc)

Documented by: Ramkumar Lalaram, CSC.

 TAXINN – Configuration

4. Condition Type JASS needs to be assigned with Access sequence JEXC and Condition class and Condition Type needs to be changed to "A"

Documented by: Ramkumar Lalaram, CSC.

 TAXINN – Configuration

5. In SD Pricing Procedure, the JMOD condition type needs to be maintained with the STEP as that of UTXJ condition type and Manual tick
& routine 355 needs to be removed.

6. In SD Pricing Procedure, the UTXJ condition type needs to be removed.

7. For SD Pricing Procedure, if J1IIN Excise Invoice will be created, the JASS condition needs to be included with Statistical & Mandatory
field ticked and STEPs needs to be maintained with the same Step as that of JMOD condition.

8. In SD Pricing Procedure, the VAT & CST conditions (EX: JIN6 & JIN7) the Manual tick & Statistical tick needs to be removed.

Please refer the below screen shot for the same.

Documented by: Ramkumar Lalaram, CSC.

TAXINN – Configuration

Documented by: Ramkumar Lalaram, CSC.

 TAXINN – Configuration

9. Tax relevancy for Master records needs to be configured for Customer Taxes & Material Taxes (EX: JIN6, JIN7 Etc.) by removing UTXJ
condition type.

Documented by: Ramkumar Lalaram, CSC.

 TAXINN – Configuration

10. While maintaining TAXINN procedure in Excise defaults, make sure "A/R BED condition" maintained with JEX2 and "BED Perc"
maintained with JMOD.

11. If JMAN condition (Manual Excise) is used in the Sales Process. In such cases, Condition exclusion group needs to be maintained for JMAN
& JMOD. In corresponding pricing procedure, the JMAN condition needs to be maintained with the step as that of JMOD and counter as
2.

JMAN Condition Type:

In TAXINJ, when entered the Condition JMAN with value, the system automatically overwrites 12.5 % to 100% in the JMOD condition and the JMOD
value will be updated as that of JMAN condition value. This is due to routine 355 maintained in Calculation type field JMOD condition in the Pricing
Procedure. Please find the below screen shot for the same.

355 Routine functionalities:

 355 routine picks the % for JMOD from FTXP Transaction.

 If JMAN condition is entered manually, the value will be overwritten in JMOD with JMAN value.

Documented by: Ramkumar Lalaram, CSC.

 TAXINN – Configuration

In TAXINN procedure, the routine 355 needs to be removed from JMOD condition.

On removing the 355 routine, whenever the JMAN condition is entered in the sales Order, the system will not overwrite JMOD value.

To solve this problem, the Condition exclusion group concept is introduced. So, that whenever the JMAN condition is entered manually in the Sales
Order, the system deactivates the JMOD condition and the JMAN condition value will be active and it will be passed JEX2 Excise condition. Please find
the below screen shot for the same.

Condition Exclusion Configuration:

Documented by: Ramkumar Lalaram, CSC.

 TAXINN – Configuration

For the Corresponding Pricing procedure where JMAN is used, the Condition exclusion group needs to be maintained as below.

Documented by: Ramkumar Lalaram, CSC.

 TAXINN – Configuration

12. Tax Classification needs to be maintained for the newly maintained Tax category in Customer master and Material Master

Documented by: Ramkumar Lalaram, CSC.

 TAXINN – Configuration

13. Condition record needs to be maintained for VAT, CST, JMOD, JASS condition types

Condition record for Condition type: JMOD & JASS:

Condition record for JMOD and JASS condition is maintained with same key combination with same details (Chapter Id).

 For JMOD condition, the Amount field needs to be maintained with 12.5%.

 For JASS condition, the Amount Field needs to be maintained with 100%.

In future, if a new chapter Id’s is created in system, the condition record needs to be maintained for both JMOD and JASS condition.

Please find the below screen shots for the same.

Documented by: Ramkumar Lalaram, CSC.

TAXINN – Configuration

Documented by: Ramkumar Lalaram, CSC.

 TAXINN – Configuration

Condition record for Condition type: JIN6, JIN7 Etc.

For the condition types JIN6, JIN7 etc., the condition record needs to be maintained for the same key combinations in VK11 transaction.

Note: For GST, the region should be one of the key combination. As the GST rates are calculated based on the region.

Key combination: Country / Plnt region / Region / Taxcl1cust / TaxCl.Mat

If a new customer or a material is included in the Master data. At the time, the Tax classification needs to be maintained for the Customer (XD03
transaction) or Material master (MM03 transaction) for tax category JIN6, JIN7 etc. So, that to pick condition record at the time of Sales order creation
for the new customer or new material.

Documented by: Ramkumar Lalaram, CSC.

 TAXINN – Configuration

14. User Exit: J_1I7_USEREXIT_CALC_EXC_BASE should be implemented.

There are processes where the Excise Invoice is created through J1IIN transaction.

After TAXINN migration, the UTXJ condition will not be available. Due to which the EXBAS (Excise base value) Field in Table J_1IEXCDTL (J1IIN transaction)
will not get updated. In turn the EXBAS value will not passed in ARE1 and ARE3 document.

To fetch EXBAS field in in Table J_1IEXCDTL, The JASS condition type (Accessible value condition) is introduced in the Pricing procedure where it will be
used in Sales Processes that involves J1IIN transaction. Also, implemented the User Exit ‘J_1I7_USEREXIT_CALC_EXC_BASE’ for fetching the value from
JASS condition and to pass the value in EXBAS field. Please find below for the codes to be maintained in User Exit.

Documented by: Ramkumar Lalaram, CSC.

 TAXINN – Configuration

15. User Exit: J_1I7_USEREXIT_DUTY_IN_EXPORT needs to be implemented.

There are processes where the Excise Invoice is created through J1IIN transaction for the Export process which involves currency conversion.

Due to TAXINN migration, the value after Exchange rate conversion, the system shows the value as zero in J1IIN Transaction.

To update the correct value in J1IIN, the user exit J_1I7_USEREXIT_DUTY_IN_EXPORT needs to be implemented. Please find below for the codes to be
maintained in User Exit.

Documented by: Ramkumar Lalaram, CSC.

TAXINN – Configuration

Documented by: Ramkumar Lalaram, CSC.

 TAXINN – Configuration

16. If required Output forms, Interface Z transaction needs to be changed as per TAXINN and the Open Orders, Open Invoices needs to be
closed

 The Outputs needs in the AS IS test document and the TAXINN test document for each process. If any deviation, the program needs
to be changed.

 If any interface involves in Sales Order or Invoice creation, needs to check how the VAT, CST, TCS and Excise values are passed. If it
needs to be changed, the program needs to change accordingly.

 Before Go-Live, the Open Orders, Open Scheduling Agreement and Open Invoices needs to be closed. So that there is no need to
migrate them to TAXINN and it will be smooth migration.

Documented by: Ramkumar Lalaram, CSC.