7/26/2019 KKC_Customizations

http://slidepdf.com/reader/full/kkccustomizations 1/15

1

Customization for Krishi Kalyan Cess (KK Cess)

ContentsDefining Condition Types .............................................................................................................................. 2

MM (Accounts Payable (A/P)) ................................................................................................................... 2

SD (Accounts Receivable (A/R)) ................................................................................................................ 9

FI (Accounts Receivable (A/R)) ................................................................................................................ 10

Account Keys ............................................................................................................................................... 11

For MM ................................................................................................................................................... 11

For FI: ...................................................................................................................................................... 12

For SD ...................................................................................................................................................... 12

Tax Procedure ............................................................................................................................................. 13

SD Pricing Procedure ................................................................................................................................... 14

Tax code ...................................................................................................................................................... 14

Condition record ......................................................................................................................................... 14

G/L Account Assignment ............................................................................................................................. 15

7/26/2019 KKC_Customizations

http://slidepdf.com/reader/full/kkccustomizations 2/15

2

Defining Condition Types

Create four conditions types JKKP, JKK1, JKK2 and JKKR to handle Krishi KalyanCess (KKCess) on services. KKCess is calculated for taxable services, on the value/cost

of the service.

MM (Accounts Payable (A/P))

Follow the below mentioned steps

Condition types: - Create condition types using the OBYZ transaction. To do this, choose SAP Customizing Implementation Guide Financial Accounting

(New) Financial Accounting Global Settings (New) Tax on Sales/Purchases BasicSettings Check Calculation Procedure.

The following conditions to be used for credit cases

JKKP - IN: AP KK Cess

JKK1 - IN: AP KKC RCM

JKK2 - IN: KKC RCM Offset

The following conditions to be used for non-deductible cases

JKKN - IN: AP KK Cess ND

JKK3 - IN: AP KKC RCM NDJKK4 - IN: KKC RCM Offset ND

7/26/2019 KKC_Customizations

http://slidepdf.com/reader/full/kkccustomizations 3/15

3

7/26/2019 KKC_Customizations

http://slidepdf.com/reader/full/kkccustomizations 4/15

4

7/26/2019 KKC_Customizations

http://slidepdf.com/reader/full/kkccustomizations 5/15

5

7/26/2019 KKC_Customizations

http://slidepdf.com/reader/full/kkccustomizations 6/15

6

7/26/2019 KKC_Customizations

http://slidepdf.com/reader/full/kkccustomizations 7/15

7

7/26/2019 KKC_Customizations

http://slidepdf.com/reader/full/kkccustomizations 8/15

8

7/26/2019 KKC_Customizations

http://slidepdf.com/reader/full/kkccustomizations 9/15

9

SD (Accounts Receivable (A/R))

Follow the below steps

Condition types: - Create condition type ‘JKKR’ using the V/06 transaction. To do this, choose SAP Customizing Implementation Guide Sales and Distribution 

Basic Functions Pricing Define Condition Types Maintain Condition Types

JKKR: IN: A/R KK Cess

7/26/2019 KKC_Customizations

http://slidepdf.com/reader/full/kkccustomizations 10/15

10

FI (Accounts Receivable (A/R))

Follow the below mentioned steps

Condition types: - Create condition types using the OBYZ transaction. 

To do this, choose SAP Customizing Implementation Guide Financial Accounting (New) FinancialAccounting Global Settings (New) Tax on Sales/Purchases Basic Settings Check Calculation

Procedure.

7/26/2019 KKC_Customizations

http://slidepdf.com/reader/full/kkccustomizations 11/15

11

Account KeysTax Account keys for MM and SD:

Create four Tax posting keys as- KP1, KP2, KP3 and KR1.

For MM 

Create Tax postings keys KP1, KP2 and KP3 using the transaction OBCN or can use IMG path do this.

Choose SPRO Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases

 Basic Settings Check and Change Settings for Tax Processing

KP1: A/P KK Cess Tax

KP2: A/P KKC RCM

KP3: A/P KKC RCM Offset

7/26/2019 KKC_Customizations

http://slidepdf.com/reader/full/kkccustomizations 12/15

12

For FI: 

Create Account key ‘KR1’ using the transaction OBCN or can use IMG path do this in below IMG path.

Choose SPRO Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases

 Basic Settings Check and Change Settings for Tax Processing

KR1: A/R KK Cess Tax

For SD

Create Account key ‘KR1’ in below IMG path. 

SPRO Sales and Distribution Basic Functions Account Assignment/CostingRevenue

Account DeterminationDefine and Assign Account Keys  Define Account Key

KR1: A/R KK Cess Tax

7/26/2019 KKC_Customizations

http://slidepdf.com/reader/full/kkccustomizations 13/15

13

Tax ProcedureAssign the condition types and Account keys for KKCess and RCM in the tax procedure using transaction

OBYZ (valid for TAXINJ/TAXINN). Assign correct ‘From’/’To’ step numbers so that KKCess conditions get

calculated on service cost/service value.

To post KKCess into separate Tax G/L accounts, assign the condition types and respective Account Keys 

for KKCess conditions as displayed in the below sample.

NOTE:

1. 

The FROM step 100 against condition types JKKP, JKK1, JKK2 ,JKKR, JKKN, JKK3 and

JKK4 refers to the base value for Krishi Kalyan computation.

2.  The condition types JKKN, JKK3 and JKK4 have a non-deductible accounting key

assigned. Use them in the tax procedure as per your business need.

The ‘FROM’ steps might vary in your system, please configure the new condition types accordingly.

7/26/2019 KKC_Customizations

http://slidepdf.com/reader/full/kkccustomizations 14/15

14

SD Pricing ProcedureAssign accounting key in SD pricing procedure through the transaction V/08. Assign correct ‘From’/’To’

step numbers so that KKCess conditions get calculated on service cost/service value.

Tax code

Create the required input tax code using the FTXP transaction for your tax procedure.

Condition recordCreate condition records for required condition types using transaction FV11 (Sample given below).

7/26/2019 KKC_Customizations

http://slidepdf.com/reader/full/kkccustomizations 15/15

15

Note: - Customers using withholding tax route for service taxes can refer to SAP Note 1736781,

attachment ‘Legal_change_Service_reverse_charge.docx’ for customization settings. Setup for Krishi

Kalyan Cess will be similar to the service tax setup. It is to be handled at customer end.

G/L Account AssignmentAssign required G/L accounts to Account keys KP1, KP2, KP3 and KR1 in OB40 transaction (An example

for Account Key KP2 screenshot is given below, and carryout the same for KP1, KP3 and KR1)