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CIN - FI

Consultant Material

Configuration Settings

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TABLE OF CONTENTS

1. CIN IMG Configuration Settings .3


1.1 Activate Country Version India for Specific Fiscal Years..3
1.2 Check and Change Settings for Tax Processing..3
1.3 Check Calculation Procedure..5
1.3.1 Access Sequences...5
2.3.2 Define Condition Types..6
1.3.3 Define Procedures...7
1.4 Assign Country to Calculation Procedure9
1.5 Specify Structure for Tax Jurisdiction Code9
1.6 Define Tax Jurisdictions..9
1.7 Creation of G\L Accounts....10
1.8 Creation of Tax Codes.11
1.9 Assignment of Accounts for Automatic Postings....12
1.10 Assign Tax Code to Company Codes13
1.11 Maintain number ranges....14

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1. CIN IMG Configuration Settings for FI:


1.1 Activate Country Version India for Specific Fiscal Years
You specify for which fiscal years you want to activate Country Version India for the
accounting interface using the following navigation menu.
Path: SPROFinancial AccountingFinancial Accounting Global settingsTax on
sales/PurchasesBasic settingsIndiaActivate Country Version India for Specific
Fiscal Years
T.Code: J_1IN0002
Maintain data as follows:
Comp. (Component): IND
To year: 2999
Active: Select

1.2 Check and Change Settings for Tax Processing


We make the necessary specifications for posting taxes. You can create the Process
Key using the below Navigation menu.
Path: SPROFinancial AccountingFinancial Accounting Global settingsTax on
sales/PurchasesBasic settingsCheck and Change Settings for Tax Processing
Click on New entries

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For doing this you specify under a process key the following indicators:
Tax type
Output tax, input tax, additional taxes, or "not tax-relevant" can be specified as the tax
type.
Posting indicator
Here you specify whether the tax amount is posted separately or distributed to
expense or revenue items.

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1.3 Check Calculation Procedure


Path: SPROFinancial AccountingFinancial Accounting Global settingsTax on
sales/PurchasesBasic settingsCheck Calculation Procedure
When you click on Check Calculation Procedure, you will get the below screen

By double click on each activity in the above screen you will get the screens as follows.
1.3.1 Access Sequences
Access sequence is a search strategy that the system uses to find valid data for a
particular condition type. It determines the sequence in which the system searches for
data. The access sequence consists of one or more accesses. The sequence of the
accesses establishes which condition records have priority over others. The accesses
tell the system where to look first, second, and so on, until it finds a valid condition
record.

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1.3.2 Define Condition Types


A condition type is a representation in the system of some aspect of your daily pricing
activities. For example, you can define a different condition type for each kind of price,
discount or surcharge that occurs in your business transactions.

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1.3.3 Define Procedures


Calculation procedures containing the necessary specifications for the calculation and
posting of taxes on sales/purchases have already been defined in the standard SAP
system for certain countries. Every calculation procedure groups several tax types
together into a condition type (for example, output tax or input tax) in the calculation
procedure, and determines calculation rules for it.

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1.4 Assign Country to Calculation Procedure


In this activity you have to assign the calculation procedure to the Country using the
below navigation menu.
Path: SPROFinancial AccountingFinancial Accounting Global settingsTax on
sales/PurchasesBasic settingsAssign Country to Calculation Procedure

You specify which tax procedure you want to use for determining excise duties and
sales taxes on input materials in India from below two types.

Condition-based tax procedure TAXINN.


Formula-based tax procedure TAXINJ.

Here we selected TAXINJ

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1.5 Specify Structure for Tax Jurisdiction Code


In this activity, you determine the structure of the tax jurisdiction code. This code is
used for calculating taxes. The tax jurisdiction code can be subdivided into a maximum
of four levels (for example, state/county/city/district). This way the tax rate is defined
per level and the tax value is calculated individually per level.
For this activity the navigation menu is as below,
Path: SPROFinancial AccountingFinancial Accounting Global settingsTax on
sales/PurchasesBasic settingsSpecify Structure for Tax Jurisdiction Code

1.6 Define Tax Jurisdictions


The tax jurisdiction code consists of up to four parts depending on the tax jurisdiction
code structure for the relevant calculation procedure: the state code, the county code,
the city code, and a local code component. The system uses these component parts to
determine the tax rate for each tax authority.
In this activity, you specify the tax jurisdiction code per tax calculation procedure using
below navigation menu.
Path: SPROFinancial AccountingFinancial Accounting Global settingsTax on
sales/PurchasesBasic settingsDefine Tax Jurisdictions

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1.7 Creation of G/L Master Records


The G/L account master records control the posting of accounting transactions to G/L
accounts and the processing of the posting data.
Before you can make postings to a G/L account, you have to create a master record
using the below navigation menu.
Path: Easy AccessAccountingFinancial AccountingGeneral LedgerMaster
RecordsIndividual ProcessingCentrally

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1.8 Creation of Tax Codes


You have to define a separate tax codes on sales/purchases for each country in which
one of your company codes is located.
Each code contains one or more tax rates for the different tax types.
If you have to report tax-exempt or non-taxable sales to the tax authorities, you need to
define a tax rate with the value 0.
Path: SPROFinancial AccountingFinancial Accounting Global settingsTax on
sales/PurchasesCalculationDefine Tax codes for sales and purchases

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1.9 Assignment of Accounts for Automatic Postings


Path: SPROFinancial AccountingFinancial Accounting Global settingsTax on
sales/PurchasesPostingDefine Tax Accounts
Transaction/ Event Keys JI1, JI2, JI3, NAV, VST

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1.10 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 we use condition-based
excise determination.
Path: SPROLogistics-GeneralTax on goods movementsIndiaBasic
settingsDetermination of Excise DutyCondition-Based Excise DeterminationAssign Tax
code to Company Codes

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1.11 Maintain Number Ranges


Below are the Objects for number ranges at Excise group and at Series group
At Excise group

At Series group

1. j_1irg23a1
1. J_1iexcloc
2. j_1irg23a2
2. j_1iexcexp
3. j_1iRG1
3. j_1idepinv
4. j_1irg23c1
4. j_1i57Fc( 57F Challans)
5. j_1irg23c2
6. j_1ipla2
7. j_1iintpr2
8. j_1irg23d
9. j_1irg1_t (material level)
10. j_1iconpla ( if Consolidated PLA is used )
We can maintain the number ranges for all CIN Number range objects using below
navigation menu.
Path: SPROLogistics-GeneralTax on goods movementsIndia ToolsNumber
ranges

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