Input Tax & output tax

Hi,
What is the difference between Input tax & output tax,at what time we use input tax & output tax
Reagrds,
Santosh kumar

Hi
Input tax is related to Vendor transactions and Output tax is related to Customer transactions. Both the taxes are configured in SAP using T code FTXP.
Sample Entries
1. Input Tax
Expense A/c Dr.-----
Input Tax        Dr.-----
To Vendor                   -
2. Output Tax
Customer A/c Dr. -
To Revenue A/c           -
To Output Tax Payable -
Hope this clarifies.
Regards,
Thomas.

Similar Messages

Input tax, output tax, VAT & service tax,

Dear all,
I have configured tax on sales & purchase.
My client wants the following combination.
Service Tax , input tax,output tax, with VAT & without VAT. I have also configured. Can anyone tell what are the GL accounts that have to be assigned in OB40 under what transaction. for example MWS, VST, etc.?
i will assign good points.
Thanks in advance,
Regards,
A.Anandarajan.

> Dear all,
>
> I have configured tax on sales & purchase.
>
> My client wants the following combination.
>
> Service Tax , input tax,output tax, with VAT &
> without VAT. I have also configured. Can anyone tell
> what are the GL accounts that have to be assigned in
> OB40 under what transaction. for example MWS, VST,
> etc.?
> <b>Hi for the input and out tax-service tax VAT accounts u need to define a GL account which should be a BS account and on the GL account settings (FS00)
enter * in the tax category so that it will accept all taxes. Check for the actkey (MWS, VST etc ) and assign proper GL accounts defined in the above step in OB40.</b>> i will assign good points.
>
> Thanks in advance,
>
> Regards,
>
> A.Anandarajan.

Calculate withholding tax when have input or output tax

Dear Forum,
I understand that when the entry has input or output tax, in order to deduct withholding tax, I can deduct from vendor or customer account.
Say if there is input tax, then I cannot deduct from vendor if at the point of vendor or bank if at the point of payment.
Say if there is output tax, then cannot deduct from customer.
Can advise the reason?
Thanks

Dear,
I will answer You with a practical example:
001 31       0000100214 Test VENDOR                       811,30-
002 40       0000444444 Consumptn, raw mat.           943,39
003 40       0000154000 Input tax                                  56,61
004 50       0000177000 Withholding tax                      188,70-
taxes
Amount           Tx D/C Tax base amount      G/L        Tax rate
56,61            A9     943,39               154000     6,000
wt pop up
test invoice time     01(CODE)     943,39      188,70 ZZ (TYPE)
where:
zz wt type is defined as Net amount
a1 wt code 20%
The System will do the following calculation:
Base for Calculation (Gross Amount) in Document Currency                            1000.00 EUR
   - Tax on Sales/Purchases Amount                                                                      56.61 EUR
Base amount = net amount                                                                                943.39 EUR
Portion Subject to Tax                                                                                100.00 %
Base Amount Minus Exempt Amt                                                                         943.39 EUR
Withholding Tax Rate                                                                                20.00 %
Final Withholding Tax Amount                                                                               188.70 EUR after rounding
I hope this can help You in understanding the System behaviour.
Please remember to use RFWT1000 by se38 if You need to trace the WT calculation during the simulation.
Mauri
Edited by: MAURIZIO BIANCOTTI on Oct 14, 2010 10:43 AM

What is input tax, output tax

what exactly input tax & output tax how we treat in balance sheet.(asset/liability)
expecting detailed information

Dear Sai,
Sales/Purchase Taxes:
http://www.ficoexpertonline.com/archive/Volume_04_(2005)/Issue_08_(September)/V4I8A3.cfm?session=
or
http://www.ficoexpertonline.com/ -> Archive -> Issue 08 of Volume 04
Regards,
Naveen.

R12 - Input and Output Tax Classification Codes in Invoices Workbench

Hello,
After upgrade from 11i to R12, in invoices workbench, the Tax Classification Code LoV (invoice line field) contains taxes that formerly were both input and output.
In the E-Business Tax Implementation guide says that :
Release 11i tax codes and tax groups migrate to E-Business Tax as tax classification
codes. Payables and Purchasing tax codes migrate as tax classification codes under
ZX_INPUT_CLASSIFICATIONS. Receivables and Projects tax codes migrate as tax
classification codes under ZX_OUTPUT_CLASSIFICATIONS.
In invoices workbench form (APXINWKB), I looked in the record group for the LoV and the values are all from the same view zx_input_classifications_v.
SELECT lookup_code, meaning, description
FROM zx_input_classifications_v
WHERE lookup_type = 'ZX_INPUT_CLASSIFICATIONS'
   AND org_id IN (:inv_sum_folder.org_id, -99)
   AND enabled_flag = 'Y'
   AND nvl(:inv_sum_folder.invoice_date, sysdate)
                between start_date_active and nvl(end_date_active, :inv_sum_folder.invoice_date)
UNION
SELECT lookup_code, meaning, description
FROM zx_input_classifications_v
WHERE lookup_type = 'ZX_WEB_EXP_TAX_CLASSIFICATIONS'
   AND org_id IN (:inv_sum_folder.org_id, -99)
   AND enabled_flag = 'Y'
   AND nvl(:inv_sum_folder.invoice_date, sysdate)
                between start_date_active and nvl(end_date_active, :inv_sum_folder.invoice_date)
It follows that some formerly Payables and Purchasing tax codes were migrated as 'ZX_INPUT_CLASSIFICATIONS' or 'ZX_WEB_EXP_TAX_CLASSIFICATIONS'.
Anybody knows how is the 11i tax code data migrated to R12 ? Is this the intended behavior ?
Thanks

I'm not a functional expert but I would suggest reviewing the following docs and see if it helps.
How To Update EBusiness Tax Lookup Codes? (Doc ID 466578.1)
Payables - Invoices - Invoice Lines Tax Classification LOV duplicating entries (Doc ID 1265315.1)
Upgraded Tax Classification Codes Not Enabled For Iexpenses (Doc ID 851607.1)
Thanks,
Hussein

Sales tax data do not define output tax

Dear Experts,
I am creating contract and getting following error 'Sales tax data do not define output tax' in SAP REFX contract
I have done the following
define tax types
define tax groups
define tax codes
Assign tax code to tax type and group
Assignment of tax transactions key
Assign country to calculation procedure
Have i missed something? If you see the contract the tax rate 10% is getting picked Please help
Thanks Regards
yezdevan

Hi Vasudevan,
Check the following checklist and try.
1. For tax code used, check for percentage value maintenance for the relevant condition type in transaction FV13, if maintained check for date validity and deletion indicators.
2. Tax code should be assigned to company code at: Logistics - General -> Tax on Goods Movements -> India -> Basic Settings -> Determination of Excise Duty -> Condition-Based Excise Determination -> Assign Tax Code to Company Codes.
3. The condition type used to maintain the tax code, as seen in FTXP. should have MVST or MWST as the access sequence in OBYZ settings, based on input or output tax respectively.
Hope this resolves the issue.
Best Regards,
Hardik Sharma

How to maintain output tax?

Hi Friends
Can u pls tell me how to create tax output tax code? I have all ready maintained FTXP & VK11. What else to do??
Warm Regards
Chandra

Hi chandra
To create tax code t.code is FTXP
As you have already created tax code check the following things :
1) In SPRO->Financial accounting->basic settings->pricing procedure->select the country and check wheather the Tax Procedure is assigned or not
2) In your pricing procedure make sure that you have assigned the tax condition type MWST. ,
3) In VK12 make sure that you have assigned the tax code also which you have created
Regards
Srinath

Input Tax and Output Tax calculating wrong figures

Hi,
I have created Input Tax and Output Tax codes in SAP.
Input Tax- 3%
Output Tax- 4%
All the configuration is done as required. But when I am posting the Purchase and Sales Invoice, the tax amount is not calculating correctly.
For example:
Input Tax Calculation should be:
Vendor A/C.............. Cr 30000-
Expense A/C............ Dr 29100
Input Tax A/C............ Dr 900 (@3% on 30000)
Input Tax Calculation in SAP:
Vendor A/C.............. Cr 30000-
Expense A/C............ Dr 29126.21
Input Tax A/C............ Dr 873.79 (@3% on 30000)
The same is happening to Output Tax transactions.
Please advice.

My understanding about the Input Tax and Output Tax was wrong. In the issue reported
Input Tax Calculation should be:
Vendor A/C.............. Cr 30000-
Expense A/C............ Dr 29100
Input Tax A/C............ Dr 900 (@3% on 30000)---my understanding was wrong.
Input Tax 3% should be charged on Expense amount, in this case Rs 30000. But because in the editing option calculate tax on net amount option was not selected, hence SAP was giving the below entry, which is correct as well.
Vendor A/C.............. Cr 30000-
Expense A/C............ Dr 29126.21
Input Tax A/C............ Dr 873.79 (@3% on 29126.21) which is correct.
Hence, the Vendor amount should be Expense + Input Tax= 30000 * 3%=900 + 30000 (expense) = 30900.
Correct Entry should be:
Vendor A/C...............Cr 30900
Expense A/C............Dr 30000
Input Tax A/C............Dr 900
Resolved. Pankaj has given the correct answer.

Why Output tax & Input tax in Plants Abroad

Hi
Can any one clarify me for the following questions
1. Why WIA plants abroad invoice is used , it seems cost is posted to " sales account for stock transfer "
2. why do we use Output Tax Dest.Ctry,Output Tax Dep. Ctry,Input Tax Dest. Ctry
Appreciate your answers for the abvove
Thanks in Advance
Regards
Dinesh

Hi N Dinesh Kumar,
i am working on Plants abroad Business scenario.
I have same question which you had ! Did you get the answers for your questions?
If yes, pls. help me with there anwers.
Thanks
AK

Input & Output Tax Error

Hi All,
This is srikanth, i have a small doubt i am getting an error input and output error. I am able to simulate the document however not able to post the document. Error message is just showing "Message No: FSA047". Please help me to get out this error.
Thank in Advance.
Thanks
Srikanth Gajulla

Hi,
please check below Points/notes
Note 379189 - FB60 F5A047 Error messages still exist -> see error log
Note 328206 - FB50: F5A047 and "Post" inactive w/supplementation
Please check tax account General Ledger FS00 -Change the master record of the tax account. On the "Create/bank/interest" tab page, remove the flag for Supplement for Auto posting., and save
and do your process
thanking you
mahesh

Business area in GL with tax category input or output

Hello,
I am confiuring the transfer deffered tax programme sa per SAP note. 921634.
Deferred tax GL's needs GL account with tax category input (<) or output(>).
When I am posting the invoice, the line item or this GL's(deffered tax GL's) does not allow to input the business area field i.e. it is greyed out.
But when i change the tax category to * in gl master the business area field is ready for input.
Is there any way to input the business area except substitution.
Marks will be rewarded for helpful answer.
Regards
Tushar
Edited by: Tushar ZIlpe on Sep 1, 2010 2:12 PM

Hi,
In Standard you can not enter a Business Area on the Tax Accounts. The reason is that there is a single line for tax, but you can have multiple expense postions using different BA.
Kind regards

While creating VK11 for output tax error should be ther for input tax codes

Hi all,
while creating condition record VK11 for output tax ,in condition record only output tax code should be possible ,if they use any input tax code then error messsage should come or system should not allow to create.how we do this.
Thanks in Advance,
Bala

Hi Jelena Perfiljeva ,
Thanks for the Reply
Its JIVP,JIVC , VAT condition types (India).

Enter an input tax code, not an output tax code in Txn CNMM

Hi All,
We are trying to use PROMAN transaction CNMM from Project systems for converting PR to PO. But when I try to do that I get the following error
"Enter an input tax code, not an output tax code"
So it seems that the system is picking the incorrect sales tax code in PO because of which the PR is not converted to PO then. But when I check in transaction CNMM there is no place to input a tax code anywhere. So the system is probably picking it from somewhere, but I am not able to figure out where is it picking it from.
Does someone have an idea about where the system is picking the tax code?
Regards,
V S

Hi,
Can you do one thing in your testing server....
Create purchase requisition manually for that material and with respect to that requisition try to create PO without putting any tax code, and see whether you are able to create PO, keep the same document types at PR and PO level, (it should be the same when you create PO thru CNMM)
-Saleel

Output tax for free goods

Hi All,
Appreciate your inputs on the following tax scenario. We need to book out tax for things we give for free to our employees.
Example: We are buying laptop bags from a vendor to give for free to our employees. We pay for example 10% VAT
This will be direct FI invoice where the tax incurred will be absorbed in as expense as we cannot claim input tax credit for this.
This means the input tax code will be zero rated.
The requirement here says, as per the legislation we need to account for output tax under deemed supplies for these free items.
As we are giving these items for free to the employees whom we cannot bill.
In this scenario how do we account the output VAT. Can this be automatically posted in SAP or will this be an manual journal entry.
In any case what will be the accounting entry for this.
cheers
Viru

Hi Viru,
I suggest you may use AR Invoice to issue the item to record output vat.
You may just create dummy customer or set the employee as Customer BP and call it in AR Invoice, then select the item with its corresponding vatable amount, just tick the Tax Only option to recognize only the vat amount of the item. Then to close the debited AR, you still use the Incoming Payment to close the AR invoice at the same time, then choose cash for example (or any other payment means) just change the GL Account to any account you wish to be debited the amount of your output vat.
Regards

Output Tax Code In Purchase Order

Hi all,
It's possible to assign an output tax code to a purchase order?
The system gives me the error message 6164 'Please enter an input tax code, not an output tax code' when I use an output tax . Is there any customization to allow output taxes in purchase orders?
Thank you,
RS

Dear friend...
You cannot use output tax code in purchase order, since output tax codes are used only for sales. If you use output tax code in the PO it will obviously throw the error you said. If you want to have the taxes as shown in the output taxes, if not present in your input tax codes, you can create new tax code which you desire. Output codes are only for the Sales Order.
Hope it helps re-ward if so
Suraj

Input Tax & output tax

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