Accrual of use tax

When receiving an invoice for a material that requires the accrual of use tax, the accrual generates a purchase price variance, rather than generating an expense related to the material.
Does anyone have solutions to this?
Please help.

Hi Willian,
You can check the customizing for the taxes by way below:
SPRO/Financial Accounting Global Settings/Tax on Sales/Purchases/
-> Basic Settings
-> Calculation
-> Posting
Also, you can verify the help online:
http://help.sap.com/saphelp_47x200/helpdata/en/e1/8e51341a06084de10000009b38f83b/frameset.htm
Regards,
Paulo

Similar Messages

Use Tax Accrual

Hi,
I have an issue accruing use tax while entering vendor invoice in FB60. The case is, the vendor has sent an invoice with zero tax. However, the client wants to accrue use tax, while entering the invoice in FB60. For this, I am using the Tax code U1. On simulation, I am getting the following accounting entries
Vendor           1050-
Office Supplies A/C      1000
Tax Payable A/C         50
Here, instead of the tax payable account the vendor account is getting credited. However, the desired entries would be
Vendor           1000-
Office Supplies A/C      1050
Tax Payable A/C        50-
The configuration settings for U1 are
Distributed to G/L                 200
A/P Sales Tax 1 Inv. NVV      0.000      210 100 JP1I
A/P Sales Tax 2 Inv. NVV           220 100 JP2I
A/P Sales Tax 3 Inv. NVV           230 100 JP3I
A/P Sales Tax 4 Inv. NVV           240 100 JP4I
Expensed                    300 0
A/P Sales Tax 1 Exp. VS1      0.000      310 100 JP1E
A/P Sales Tax 2 Exp. VS2           320 100 JP2E
A/P Sales Tax 3 Exp. VS3           330 100 JP3E
A/P Sales Tax 4 Exp. VS4           340 100 JP4E
Self Assessment               400 0
A/P Sales Tax 1 Use MW1      5.000      410 100 JP1U
A/P Sales Tax 2 Use MW2           420 100 JP2U
A/P Sales Tax 3 Use MW3           430 100 JP3U
A/P Sales Tax 4 Use MW4           440 100 JP4U
Am I missing something here. Do I need to do anything different to accrue the use tax. Any help is highly appreciated.

Hi Mallik,
I need to configure use tax and I am totally at a loss how to do it.
I founf your reply and the link mentioned by you.
However I am not able to access this link.
Can you please help me with this?
I would really be grateful if tyou could send me a document on this or anything using which I can configure use tax.
My id is [email protected]
This is really urgent.
Thanks in advance,
Nitish

US: Tax-setup of Sales and Use Tax in a company located in Michigan, US

Dear all!
Below it's described how the A/P-taxes have to be handeld in our company in Michigan, US. We want to use a very simple TAXUS-setup (No Jurisdiction). Actually we have problem in setting up the tax-scheme of TAXUS with the following cases:
In the US, there are four situations for our Sales/Use Tax. All four are for A/P only. All four are related to the State of Michigan. The applicable tax rate is either 0% (exempt from tax) or 6% (taxable).
The first two involve invoices that are correct from the vendor and nothing special needs to be done. The
payment is made to the vendor and the full amount of the invoice is booked to the expense account (i.e. 123456 Telephone).
1. The vendor DOES NOT charge sales tax on items that are EXEMPT from sales tax.
2. The vendor DOES charge sales tax on items that are TAXABLE.
The second two situations involve invoices that are incorrect from the vendor and our company must account for the sales/use tax.
3. The vendor DOES NOT charge sales tax on items that are TAXABLE. Our company must accrue for the tax due to the State of Michigan and pay it at the end of the period.
4. The vendor DOES charge sales tax on items that are EXEMPT from sales tax. Our company must either deduct the sales tax on the invoice from the payment and reduce the amount paid to the vendor OR pay the invoice in full and book the overpayment of tax against the accruals from item #3.
Especially case #3 is actually the biggest challenge to be setup in the system in order to get the amounts correctly calculated. To our opinion the SAP has to create an additional tax-line item.
Thanks a lot for a helpful answer or solution!
Regards,
Bernd

Hi Bernd,
Did you get a solution for your query? If so, can you please share that? I have the same scenario for Geismar, Louisiana.
Please let me know how did you configure the Accrued tax. Really appreciate your response.
Thanks, Reji.

USE TAX Posting for Procedure TAXUSJ

HI,
Does anybody know which accounting KEY and Condition type should be used to perform use tax posting for procedure TAXUSJ?
Our requirement for use tax posting during MIGO and MIRO will be:
Use Tax-
At the time of Good Receipts-(MIGO)
Debit Expense in total including tax amount
Credit GR/IR for line item amount
Credit 71410 (AP Sales and Use tax account) amount of tax
Sample- MIGO Posting
GL- 510000 $10,000
GL- 71035 $(9,125)
GL- 71410 $(875)
*The Use tax accrual goes directly to the correct account and will be reported by tax accountant on quarterly tax return.
At the time of Invoice receipt (which should not have tax on it)-(MIRO)
Debit GR/IR for line item amount
Credit Vendor
Sample- MIRO Posting
GL- 71035 $9,125
GL- vendor $(9,125)
Does any account key for TAXUSJ perform this function for use tax posting?
Thanks.
Rickey.

Hi,
Please, refer to this link:
Re: Table for tax rate
Regards,
Eli

Configuration for Use Tax(USA)

Hello.
I have one problem during the project. We have to set the configuration as the customer request us.
I know that SAP delivers basic tax code for Use Tax of USA.
Actually, I don't know how to configure in order to post document with journal entry like,
Debit Credit
Expense 100 / AP 100
Use Tax 7 / Accrual Tax 7 <<< These two lines must be created automatically.
I tried several options but, I failed.
We set tax procedure 'TAXUSJ' because other subsidiary is already using this.
Thank you in advance.

First, make sure that the tax relevant fields in these GL accounts Master are complete.
For TAXUSJ u2013 Tax code for a specific COA is U1
I guess (not sure though), you can provide the automatic account determination using the Tcode OB40 to automatically generate the FI posting that you desire.
Account Transaction Type: USA
Description: USA-Accrued Use Tax
Hope this helps,
<< Moderator message - Point begging removed >>
Thanks.
Edited by: Rob Burbank on Jan 17, 2011 4:17 PM

Error while posting to Tax Journal Entry for sales and use tax

Hi,
I am trying to post a journal entry (FB50) to cleanup and correct the liability on our sales and use tax. All lines are giving warnings and messages.Give me a suggestion on how to get it to post . Or if needed, another solution to correcting the balances in the sales and use taxes.
But the entry to a/c # 226530 is giving an information message but still wouldnu2019t save.
The Error message is
Enter the tax base amounts for account 226400 in company codeAFCO
Message no. F5A375
Diagnosis
You are posting directly to a tax account. Enter the tax base amounts per item using the function "Tax Amounts".
Kindly help me how to fix the above issue.
Thanks
Suvarna

You may want to check out the following notes... they may shed some light on your problem.
681930 - Posting on tax account possible w/o specific. of base amount
1090096 - FB60 / MIRO - Checking direct tax after change (F5A375)
944978 - FB60 / MIRO - check of direct tax after change

Sales Report for US Sales and Use tax

Hi,
I'm looking for t-code to extract detailed sales report having Gross sales, Exempt sales , Ship to state, Ship to County\ City, Sales Tax collected. If I'm getting this report i can verify what my sales tax software is updating.
When i extract tcode - ZINVLIS i don't get much detail.
Please help me in extracting complete sales detail which can be used for sales and use tax verification process and audit purpose.
Thanks,
Karthik

Hi Karthik,
There is no standard report available as per my knowledge.You may develop Z report to achive your requirment. Check some LIS report can give data (MC01 is transaction where you can check all type of key figure reports)
Regards
Mani Kumar

Sales and use tax or self assessed tax

Hello,
I am supposed to configure Use tax for a client.
I have checked metalink note on configuring use tax, somehow it is not complete.
If someone could help me find a document that speaks about use tax, it would be a great help.
Regards,
Shilpa

the below note helped resolve my requirement pertaining to Use tax:
How to Configure a Tax to Self-Assess in R12 E-Business Tax (EBTax) and Payables (Offset, Use Tax) [ID 948414.1]
Thanks.

Sales and Use Tax Packages

Here at KeySpan we are in the process of upgrading to Oracle 11i. We are also evaluating software packages for calculating sales
and use tax in conjunction with Oracle Purchasing and Payables modules. How are other organizations doing this? Did you use
the existing functionality in Oracle or purchase a package like Vertex or Taxware?
- Mike Stankard

Did you comeup with any solution for this??

Use Tax Posting To Tax Payable and Expense Account

Hello Experts,
I am trying to post tax, code 03, to an expense account instead of the customer account at the time of billing. This is for use tax posting based on the costs of our materials and should be paid by company and not passed to the customer. Currently The percentages will base from the cost of material instead of sale price but this is posting to our tax payable account and to customer account as below:
Dr Customer Account 1.27
       Cr Revenue -1.20
       Cr Use Tax Payable -.07
The desired outcome would be as below:
Dr Customer Account 1.20
     Cr Revenue -1.20
     Cr Use Tax Payable -.07
Dr Use Tax Expense .07
Thanks in advance for help.

Hi
Welcome to SDN Forum
As you want to post to separate Tax payable and expense account ,so maintain a separate account key and assign it to the tax condition type in Pricing procedure .In VKOA assign the G/L accounts to that account key.So you have to take your FI Team members help to get the G/L accounts.and its assignment to the tax code.
Regards
Srinath

Use Tax for Free of charge items

Here is the scenario:
In our Business, there is a process to give a Free item with mostly all the products sold online. In SAP, we will create regular sales order with 1 line item as TAN and other item category as TANN.
The Business wants to calculate Use tax on the 2nd line item where Net value=0. As we use the same Pricing procedure, we cannot charge different taxes based on line item.
The other option was to send the cost details to Vertex, so that they can store it in Vertex and use for Tax calculations. The technical issue is that whenever the Net value=0, Vertex RFC is not called.
We have proposed to create a report in SAP which will tell them the order details with Free items but this is not acceptable to Business.
Has anyone worked on such scenario where Use tax is calculated on the Sales side for Free of charge items.

The basic concept in tax is seller can levy the appropriate tax on the items which they are billing. This being the case, I am not sure, why for a free of charge item, tax should be levied. Can you please share in which Business process, this is being followed. Needless to mention, if at all you want to achieve this requirement, have a separate condition type for this free goods, set as statistical, so that, only tax portion would be posted to FI.
G. Lakshmipathi

Use tax reports do not match

Use tax reports do not match. One shows the GL account balance using FAGLB03 and the other is the use tax report S_ALR_87012394. I need to use S_ALR_87012394 to determine the location of the tax and pay it but since it doesnu2019t match with the GL there will be issues.

Hi,
Under these two cases i had found difference between vat reports and vat gl accounts.
1) When the users are manual input the vat amount on the input invoice , resulting vat amount will be updated on the invoice and gl account BUT not the vat report.To find the these items go to the GL line item report and find the line items with BLANK VAT CODE.usually this will tend to use by the users when there are any rounding differences in the vat calculation. Also to avoid these cases hide the manaul vat amount field blank.
2) When the users manually inputed the vat amount on the gl accounts, provided GL master are not checked with automatic postings only option.
Best Regards
Suresh Addagiri

Sales/Use Tax - Automatic Account Assignment

Our use tax on an incoming Accounts Payable invoice gets automatically charged to a GL account. Is there a way to assign a profit center on that posting so that all postings to that GL account for that company are assigned to a profit center?

And conditions are company code + GL account = profit center 1? For that you can use substitution, transaction GGB1, make this setting for Cost accounting, line item level and in prerequisites you make if BUKRS = xxxx and HKONT = xxxxxxx, in substitution put COBL-PRCTR = PC1.
Ask if you need further clarifications.
regards

Use Tax Report in AR

I am working on UseTax report in discoverer.I would like to know how to calculate use tax for particular invoice.Tax rates are depending on postal code and start date.I referred AS_SALES_TAX table.Are you having any code or any particular joins to calculate Use taxable amount for invoices.I would appreciate if you can provide me some help.

Hi,
This type of report will not be available in an ALV format as there are multiple sections in the report with different layouts. Such layouts together can in no way fit in to an ALV scenario.
Do revert if your need is specific, within the ambit of ALV structure. You cannot have multiple Layout being output in ALV.
Cheers.

Use Tax Question

Hi Experts,
I have a question about Use Tax (Localization 2007 A).
Where in SBO does this have an effect?
I ticked the tickbox in the Company Details for Use Tax. I also setup a Taxcode with the Use Tax Accounts filled in. I tested this Taxcode in a AR and AP Invoice, but found that the Tax Entries only went to the Sales or Purchasing Tax Accounts.
Any help would be appreciated.
Thanks.
Marli

Hi,
Did you Test in Demo by checking the tickbox 'Allow Use Tax' under the Warehouse Setup?
Kindly check.
Kind Regards,
Jitin
SAP Business One Forum Team

Accrual of use tax

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