Last Updated on August 15, 2022 by admin

How to Check Calculation Procedure for Tax in SAP

The following tutorials guide you on how to check the calculation procedure for tax in SAP. Refer below step by step procedure to define the calculation procedure in the SAP system.

  • IMG Path :- SPRO > IMG > Financial Accounting > Financial Accounting Global Settings > Tax on Sales/Purchases > Basic Settings > Check Calculation Procedure
  • Transaction code: FTXP

The standard system comes with two tax calculation procedures.

  • TAXINN – Condition Based
  • TAXINJ – Formula Based 

TAXINN :- TAXINN supports only condition based excise determination

TAXINJ :- TAXINJ support the condition based and as well as formula-based excise determination

The difference between TAXINN and TAXINJ procedure is, TAXINN is a condition based and we have to maintain condition records for each condition type and TAXINJ is a formula based for which we maintain a tax code by using FTXP

Tax calculation procedure configuration process :-

Step 1: Execute SAP Transaction Code “FTXP” in the SAP command field

Step 2: Tax procedure can be defined by coping with existing procedures or by defining new entries

Select “Define procedure”

TAX Check Calculation Procedure SAP

 Step 3: Select TAXINJ and click on a copy as an icon. Update your new tax procedure key and press enter

Then select “copy all”, and all the entries from TAXINJ copied to the new tax procedure TAXADE

TAX Check Calculation Procedure SAP

 Step 4: Select Tax procedure and double click on control data 

TAX Check Calculation Procedure SAP

 Next control the data overview screen, check all conditioning types, and add new conditional as per company requirement

TAX Check Calculation Procedure SAP

 Click on the save icon to save the configured data. Successfully you defined a new tax procedure in the SAP system.