Process of JAPAN to create new consumption tax codes at module wise

In General:

Define a new tax on sales/purchases codes and you must not change the percentage rates for existing tax on Sales/purchases codes.

In principle, you have to create new codes that have not been used in the system up to now.

There are some reasons why the new codes have to be created.

Tax codes cannot be defined as time-dependent. If you directly change (overwrite) the percentage rates for existing tax codes, after the change, the new rate is immediately effective.

If document items have the same tax code with the different rates, we cannot distinguish between the old rate and the new rate. As another reason, if there is any program to do certain Procedure by using the tax rates at the point when this procedure is executed, we cannot do this procedure by the old rate but the new rate, after the rates are changed.

For example,

     The solution of “Invoice Summary”, which is one of localization solutions for Japan, has the function to adjust the VAT amount and post it when monthly invoices are created. When this function calculates the VAT amount to be adjusted, the program uses the rate set in the tax code at the point when this function works.

     Thus, if you directly change (overwrite) the rate and Accounts Receivable posted with the old rate exists and the VAT recalculation is executed after the tax code has the new rate, the calculated VAT amount to be adjusted becomes the unexpected values.

      To create the new codes, go to SAP Customizing Implementation Guide: Financial Accounting -> Financial Accounting Global Settings -> Tax on Sales/Purchases -> Calculation -> Define Tax Codes for Sales and Purchases set “JP” in the country field, by copying the (old) code to the new code and adjust them to the new percentage rate.

      Please transport the new tax codes with the export/import programs in transaction FTXP (tax code customizing: function: Tax code – Transport – Export / Import). Please import the specially generated transport request in the production environment and check that the percentages have been transported. Because the numbering rule of VAT code seems different among customers,

SAP decided NOT to deliver the new tax codes as default in the higher support packages and the higher releases. The customizing changes for the new tax codes will not be delivered by SAP.

1. FI Module

      1. Need to create the new tax code:A2(Sales) and V2(Purchase) in Development in transaction FTXP and transport the new tax codes with the export/import programs in transaction FTXP (tax code customizing: function: Tax code – Transport – Export / Import) in quality system.

      And finally need to transport with new tax transport number to production environment, once transport to new tax codes and need to run the following program: RFTAXIMP

     2. In order to activate the new tax codes, please use report RFTAXIMP.

          About this program:

           I. We need entered the country is proposed and the transport number which contains tax codes while running the RFTAXIMP program.

          II. This program is used for importing the tax percentage rates along with GL account for respective new tax codes which already imported to quality and in Production environment.

               Note: Here we can use Old GL accounts for new tax codes which are already maintained for old tax code: V1 and A1 respectively.

          III. Program RFTAXIMP generates a batch input session with the name.

          IV. Processing this batch input session creates the tax percentage rates and GL accounts for the imported tax codes in the corresponding country

          V. Check the status at SM35 whether the batch run successfully. 

          Note: To run the above program, need to open change Flag in quality and production environment (SCC4)

                   Please make sure the access has been taken or not in Production environment before performing the above activities that is like Client open,       table update access and SM35 access

        Screen shots: T code SE38 and How to run the program       

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   Capture1.JPG

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     SM35 status at after run the above program.

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3. Need to main the new tax code for Bank charges using – OBVU T code

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Note:  New tax codes for bank charges better to maintain before 1 week of new fiscal year start.

4. Cash journal:

   Need to main the new tax code (V2) for Cash Journal using – FBCJC2 T code

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Note:  New tax codes for Cash journal better to maintain before 1 week of new fiscal year start.

2. Material Management:

Action Points for Master Data

Tax code in Purchase Order defaults from the Info record and need to change old tax code to new tax code like below.

Menu: Material Management  Purchasing  Master Data  Info Record – T-code: ME12

Before change:

Capture6.JPG

Based on above screen, we need to change the new tax code from V1 to V2

After changes:

Tax code V1  (5 %) should be replaced with new tax code V2 (8 %) on 31st March, 2014 or April 1st 2014. 

Capture7.JPG

    Action Points – Transaction Data

           A) If any Purchase Order is to be created before 1st April, 2014 with consumption tax as 8 %.

                                                            OR

           B) Open Purchase Order created before 1st April, 2014 and GRN has to be carried out after 1st April, 2014.

               The following steps have to be carried out:

          Before the change:

           Purchase Order (T-code – ME21N)

          Capture8.JPG

           After the change:

         

           Change the ‘Tax code’ from V1 (5%) to V2 (8%) through ME22N 

        Capture9.JPG

3. Sale and Distribution

          Action Points for Master Data

          Here we need to maintain the conditions records at new tax code level

          Before changes:

          T code: VK13 (Display condition records)

          This activity needs to do in production environment directly which is not transportable:

     Capture10.JPG

       After changes:

      This activity needs to do in production environment directly for Tax code: A2 which is not transportable

       T code: VK12 (change of condition records)

      Change ‘Valid To ‘ date from 9999/12/31 to 2014/03/31 and Tax code A1 (5%)

   Capture11.JPG

     T-Code: VK11 (Creation of condition records)

     Maintain Valid on date – 04/01/2014 to date 12/31/9999 and New Tax code A2 (8 %).

  Capture12.JPG

     Action Points – Transaction Data

     A) If any Sales Order is to be created before 1st April, 2014 with consumption tax as 8 % and the following process is to be follow:         

      Sales Order Creation: T-code: VA01

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          • Before entering the material number, change the ‘Req. delv. Date ‘to actual delivery date.

            Let us take for example – On 04/02/2014, material is to be delivered to the customer.

     Capture14.JPG

          •  Now, you can enter Material No: quantity and other details at the line item.

      Capture15.JPG

     B) If any open Sales Order created before 1st April, 2014 with consumption tax as 5 % and delivery has not made , following steps has to be followed :

       T-code – VA02 – Sale order change:

      Before the change:

     Capture16.JPG

    After the change:

     • Manually change the ‘Reg. delv. Date’ and ‘first date ‘for each line item and save.

     Capture17.JPG

4. Shipment Cost:

Action Points Master data

Before change:

T-Code: TK12

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     T-Code: TK11

     Maintain ‘Valid on ‘date – 2014/04/01 ‘To’ date 9999/12/31 and new Tax code V2 (8 %).

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Please  find some of the important links for your needful about Japan consumption tax and hope this blog will helps to all.

IMP Link: https://websmp101.sap-ag.de/~form/sapnet?_SCENARIO=01100035870000000202&_SHORTKEY=01100035870000754660&_OBJECT=011000358700001267742012E

                                                 – Document End –

     Wish You All the Best.

Regards

Sudharsana Vamsi

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