What is cess in SAP FI - Financial Accounting?

SAP Term: cess

• Component: FI

• Component Name: Financial Accounting

• Description: In India, a tax on the manufacture of certain products, mostly foodstuffs. Payroll India PY-IN An additional tax calculated based on a person’s income tax payable and levied for particular purpose in India, usually is certain percentage of the total tax payable. For example education cess.

Smart SAP Assistant

• Key Concepts: 
  Cess is a tax levied by the Indian government on certain goods and services. It is collected by the Central Board of Excise and Customs (CBEC) and is used to fund welfare programs for the poor. Cess is calculated as a percentage of the total value of the goods or services being taxed. 
  
  How to use it: 
  In SAP FI Financial Accounting, cess can be configured as a separate tax code in the system. This tax code can then be used in transactions such as sales orders, invoices, and payments. The cess amount will be calculated automatically based on the total value of the goods or services being taxed. 
  
  Tips & Tricks: 
  When configuring cess in SAP FI Financial Accounting, it is important to ensure that the correct cess rate is applied to each transaction. This rate may vary depending on the type of goods or services being taxed. 
  
  Related Information: 
  For more information about cess in SAP FI Financial Accounting, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_FI/ERP_6.0_SPS12/en-US/f9f8d7a3c2b14e8a9f7d3c2b1e4d5f2b.html