Non deductible input tax

Hi Gurus,
We have non-deductible input tax codes with the process NVV in our system. The process permit the distribution to relevant expense/revenue items.
We also need to have the value of the net amount and the non-deductible amount in the items but we don't find the way to implement it.
Could anyone help us ?
Thanks in advance for your answer.
Chris.

HI,
We use NVV with posting indicator filled with 3 because we need to have the non-deductible amount distibuted in the expenses items. But we need to see also the net amount.
In fact, what should be interesting for us wold be a tax code with the process NAV where the GL account is the expenses GL account.
See an example below :
Customer : 1196 Eu
Expenses GL account 1000
Expenses GL account 174,44
VAT GL account 21,56

Similar Messages

Deductible and Non Deductible Amount tax codes.

Dear MM Gurus,
Since I have a little doubt even though if you are busy I had to disturb you, by asking this. Please make your time to give me some clarification.
01     EDECSHECS(DED) +VAT 4% - (Ded)
02     EDECSHECS( DED) +VAT 12.5% - (Ded)
03     EDECSHECS(DED) +VAT 4% - (Non Ded)
04     EDECSHECS(DED) +VAT 12.5% - (Non Ded)
05     EDECSHECS(DED) +CST 2%
06     EDECSHECS(DED) +CST 4%
07     Zero ED + VAT 4% - (Ded)
08     Zero ED + VAT 4% - (NON Ded)
09     Zero ED + VAT 12.5% - (Ded)
10     Zero ED + VAT 12.5% - (NON Ded)
11     Zero ED + CST 2%
12     Zero ED + CST 4%
13     EDECSHECS(NON DED)+VAT 4% -( Non Ded)
14     EDECSHECS(NON DED)+VAT 12.5% -( Non Ded)
15     EDECSHECS+VAT 4% - Cap Ded
16     EDECSHECS+VAT 12.5% - Cap Ded
17     Zero ED + VAT 4% - CAP(Non Ded)
18            Zero ED + VAT 12.5% - (CAP Ded)
Suppose Tax codes are 01 and 02 where Excise duties are Deductible :
And 13 and 14 which are Non-Deductible.
Supppose if I use 01 and 02 which are deductible , I would maintain the condition record and GR is made and if MIRO is posted ModVat amounts would go to Modvat clearing Account.
But for which ModVat is not available , do I need to maintain the separate condition like we maintain in FV11.   When the effect of Non Deductible Amount will come ?
If I maintain the condition records for the above where the modvat is not available then there would be no difference between Ded and Nondeductible.
Because if I maintain the condition records for both ded and non ded both will be same.
Where and at what stage will I get the difference between the ?
Because My report requirement is
They want the Landed cost based on Modvat credit and VAT credit available or not.
Suppose :   Base Amt :               100
                  EDECSSECS:     14.42
                  Freight       :                20
                                  Total Value amounts to   134.42
If Modvat credit is available : 134.42-14.42=120 ( for Tax Codes 01& 02)
If Modvat credit is available : 120.0+14.42 = 134.42 ( for Tax codes 13 &14)
I am struck. Even though I saw by testing but I am little bit confused.
Please let me in brief in reply so that I could do this report with your guidance.
Thanks & Regards,
Girish.C.M.

Ok

Deductible & Non deductible in tax codes

Dear All,
Can anyone pls let me know the difference between 100% non deductible and deductible in tax codes setup.
Regards,
Rahul

100 % non deductable % means,Tax accounts are not hited but it will hit the inventory account i.e. will increase the iten cose.
other wise it will hit the tax account.
some times client want that their tax ammount will increase the item cost not their tax account.
thts why using Non deductble % 100
Ex: I had purchased a raw material of 1,00,000 and the tax @4% then my tax ammount is 4,000. But my client wants to show the inventory value as 1,04,000 but not as 1,00,000.
Hope this will help you
Regards,
Neetu

Non-deductible tax configuration

Hello,
How to configure non-deductible cost? Is it something we can configure with certain percentages.
I did search other threads regarding this issue and found below solution.
1. Open Administration -> Setup -> Financial -> Tax -> Tax Type
2. Double Click on the row 'tax @4%' which opens, "Define Values for Tax Attribute Window:"
3. In this window, in 'Non Deductible %' give 100.
4. Save and Close this window.
But not sure which path or transaction code I can use to do above settings.
Best Regards,
Tapan
Best Regards

Hi Ravi,
Thanks for your valuable help.
If we assign same GL account in account key VST (input tax) and NAV (non-deductible input tax) , then how can we specify the deductible and non deductible amount in Balance Sheet.
I have test below scenario.
Tax code K4 - 19% as Input Tax and 40% as non-deductible input tax.
So I got below entry.
Vendor - 1000 Cr
Inventory                  628.93 Dr
Vat (GL a/c X)          119.50 Dr
Vat (GL a/c X)             251.57 Dr
Please let me know how can I show the above amount separately in B/S. Or do I need to assign 2 different account in VST and NAV respectively?
Regards,
Tapan

Self billing invoice with input tax code

Hello experts,
we are currently trying to implement a billing procedure with credit memos within the module SD. In this set-up the recipient of a service (company using the SAP) creates a credit memo for the renderer of a service (a debitor in SAP) showing the amount the recipient of the service/product has to pay. The credit memo will also show VAT (we currently only try to implement a process for transaction within Germany, no cross-border transactions yet). For the recipient of the service (= issuer of the credit memo) the credit memo is similar to an incoming invoice (self billing invoice). Hence, the shown VAT on this credit memo - if all other requirements are met - can be treated as deductible input tax.
In order to automatically process the credit memo correctly as incoming invoice it has to be linked to a tax code (Steuerkennzeichen) with tax type "V" (=input tax) (Vorsteuerkennzeichen). To achieve that we have created a new condition record (Konditionssatz) that performs that task.
So currently we create a credit memo request (Gutschriftsanforderung) which is linked to an input tax code (Vorsteuerkennzeichen) via mentioned condition record. We then create the billing document. During creating the billing document an accounting document should also be created. But that is where our approach does not work properly. The system creates a billing document (credit memo) but does not create the corresponding accounting document. We receive the error message:
Document .... saved (no accounting document generated)
Message no. VF050
When trying to release the document to FI via Transaction VF02 we receive the following, more detailed error message:
Only output tax is allowed for account 480000 1000, VZ is not allowed
Message no. FS215
This problem has to be somehow linked to the usage of an input tax code. If we perform the same procedure with an output tax code (Ausgangsteuerkennzeichen) we will not receive the error message and an accounting document is created.
It seems that the account determination is responsible for the described problem: Although an input tax code is assigned, the account key (as shown in the overview to the applied conditions on the items within the credit memo request (Item - Condition - Detail)) does not change from "MWS" to "VST" and therefore an output tax account (Account Number 480000) is determined for the tax amount. And for that output tax account the usage of an input tax code is not allowed.
Has anyone an idea how to solve the described problem or how to implement the billing procedure another way?
We are aware that there is such a functionality within the module MM called "Evaluated Receipt Settlement (ERS)" but this is not suitable for our purposes since we want to implement this within SD and without the need to create an order first which seems to be necessary for ERS.
Thanks for your help,
Bernd

Hi
Please check in FS00, of that G/L account in control data tab what is the Tax Category that has been maintained.Check wheather input tax/output tax has been maintaind or not
In FS00 in the control tab check the box Posting without tax allowed
Regards
Srinath
Edited by: sri nath on Sep 30, 2011 4:55 PM

FF753 - Apply an Expense Provision with Input Tax NVV

Good afternoon all,
My problem is that my client has firstly posted an expense provision: Expense (40) <===> (39 CME) Vendor
After that, the user wants to apply this provision and consider tax code N4 (Input Tax NVV: Non-deduct.Input Tax - 8%). Due to that, this tax code will not have posting position (Table T030K empty). The future posting should be something like this: (29 CME) Vendor <==> (31) Vendor
Both accounts have been customized with Tax category no blank.
We get the error FF753.
We have try to set this message like warning and we get the posting but if we run the Spanish VAT report S_ALR_87009895 (Advance Return for Tax on Sales/Purchases) we do not get any VAT information related. We have only this problem with Input Tax NVV.
Any idea?
Please let me know.
Thank you a lot. Regards,
Daniel

Issue is resolved ... I misunderstood the logic. Tax Code is linked to a GL account. And when I run PRRW, I see the relevant Tax amount in against the trip

Freight to be in Non-Deductible account

Dear Experts,
I have created a Non-Deductible Service Tax code(100%) with Freight enabled. But during adding an A/P invoice the Freight account is not picking up the tax amount which i have assigned to.
Please put your feeds.
Regards,
Anandh.

Hi
I am not getting your Question Clearly anyway find the follwoing links may useful:
Non deduct tax account missing in stock item
Re: Non Deduct Tax Account is Missing for Stock Item [Message 439-125]
Re: Error:Non deduct tax acount missing in stock item
If it was not solved u r query pls explain little bit more to help you.
Giridharan V

Mandatory Non deductible Acct

Hi All,
Today I create a Tax code with 100% in Non deductible %.
System allowed me to left blank the Non deductible Acct.
Now down the line when I use the same tax code in Sales process, at the time of preparing Outgoing excise invoice, system do not allowed me to add it giving error message G/L account missing.
After investing lot of hours, I found that the reason was blank Non deductible Acct.
Therefore I believe when somebody enter some % in Non deductible % during Tax code defination, System should not allow to save the same without entering Non deductible Acct.
In short Non deductible Acct should be mandatory when Non deductible % is greater than 0
BR
Samir Gandhi

Posing development request in respective forum

Invoice non deductible tax amount vs Purchase order

In the purchase order the tax amount is calculated item by item (ME21N). In the invoice (MIRO) when we select flag Calculate tax the system calculates the tax amount for the total of all the items. Because of this system behaviour in the invoice verification sometimes we obtain small differences.
These differences should not exist specially when we are using a non deductible tax that affects the material valuation with the goods receipt and has to be corrected in the moment of the invoice verification.
Why does the system have a different behaviour from the purchase order to the invoice?
What can be done?
Best regards

Dear Biju K
Whatever you mentioned about condition NAVS is there in system.
I am not adding tax code in PO, referring your earlier email I am asking that.
For adding other element I have not asked anything here, only to clarify your statement
You need to cross check why non-deductible tax amount needed in your PO with NAVS condition type and its purpose.
I explained this.
My question is simple that in one PO I am getting non-deductible tax but if I change vendor for the same material I am not getting non-deductible tax in condition tab ? I am not able to understand why its happened ? If one PO shows means there are chances that basic configuration is correct but may be somewhere something is wrong, I want to find out that. If you can throw some light on that its helpful for me.
regards
Nitin

Journal Entry for Service Tax Non-Deductible.

Dear Experts,
I have created an A/P Invoice for a Service item with Service Tax Non-Deductible(100%). For that we got the journal entry as below.
Journal Entry
Edu. Cess on Service Tax Payable Dr.                   00
HCess on ST Payable Dr.                                        00
Service Tax Payable (Non-Deductible) Dr.              00
Inbound Freight and Carriage Dr.                       10000
Service Tax Payable (Non-Deductible) Dr.            258
                Vendor A/c                                                     10258.
But my client is asking for the credit figure to be splited to Vendor A/c - 10000 and Service Tax Payable (Non-Deductible) A/c - 258.
He wants the Service Tax amount not to be credited to the Vendor A/c; but to be kept in the Service Tax Payable account.
Is this correct and possible? Please advice.
Regards,
Anandh.
Edited by: anandharajaa on Apr 8, 2011 7:32 AM

Hi
I never seen this kind of scenario....
If your involving any tax in Document then it will Cr. or Dr. to respective vendor or customer and it is the logic too , they have to pay for that... IF they are not payable then will your company pay for that to Govt. It will be lose to company only....
So in Straight the way you need is wrong according to me, May be i don't know your are current scenario might be like this... if it so pls explain further ....
Giridharan V

CST and VAT amount (non deductible taxe) is debiting in the purchase price

Hi
I am facing some problem in migo FI documents
MY client is maintaining standard price for raw materials
While doing GR in MIGO CST and VAT ,both are non deductible taxes, is debiting in purchase price variance and crediting in GR/IR
The above said taxes are not debiting in raw material account now
I had already done all the settings in OBCN like tick mark, posting indicator and 3 Distribute to relevant expense/revenue items etc.,
but still the taxes are debiting in variance account. We are maintaining pricing procedure as TAXINJ
plz give your suggestions how to solve the problem.

Hi
If you have maintained a Standard proce control in the material master, the non deductible taxes will not post into the material account, you need to maintain a moving average price control for the material to get the non deductible taxes posted.
Price variance account is trigerred due the reason as sytem is trying to post it on to the material and you maintained it as standard price, so sytem cannot add to the material, so it posts the amount in PP account.
Change price control from S to V, you r issue will be solved
Thanks & Regards
Kishore

TAX value is not triggerring in JVCD, JVRN(VAT non deductible)

Hi All,
Tax values are not triggering in JVCD, JVRN even though the non deductible key NVV assigned to it, and but in OB40 NVV key is not there, and calculation type 371 is assigned to it in taxinn procedure
kindly suggest me the possible reasons..
regards,
sanju

Hi,
For VAT ,not required to have calculation type 371 to assigned in tax procedure for VAT condition types JVCD, JVRN.
As VAT to be inventorised, then assignment of "NVV" acounting key in tax procedure is correct. If VAT treat as offsetting entry, then need to have an accounting key ( accounting key can be created in OBCN) & assigned to VAT condition types JVCD, JVRN and then assign G/L account to accounting key in OB40.
NOTE: But why you have two condition types JVCD, JVRN for VAT inventorised,(non deductible)
Regards,
Biju K

Non deductible tax problem

Hello, Created one condition type: ZVSB (VAT non-deductible) Condition class: D, Calculation type: A, Cond. category: N, Access sequence: MWST, item condition. In Tax calculation procedure: (T/code OBQ3) - TAXINN ZVSB condition type calculation - Basic price + service tax, account key: NVV (tax type:2, non-deductible, posting indi: 3) In MM pricing procedure: (T/code M/08) There are 2 condition type: NAVS: Non-deductible tax JEXS: Taxes on the PO Tax code created: ZX (Vat 5% non-deductible & 12.36% service tax) Problem: At the time of creation of PO with tax code ZX.......the VAT value also fetch in condition NAVS & total tax value fetch in JEXS condition, which increased the PO value (Double VAT value) For e.g. Basic price: 100 Service tax: 12.36 VAT: 5.62 Actual Po value should be: 117.98 but in my case: PO value is coming Basic price: 100 NAVS: 5.62 Jexs: 17.98 PO value: 123.60 I want that vat value should come in non-deductible condition i.e. NAVS & service tax in JEXS. Kindly help.

Hi,
As of my knowledge, there is no standard condition type through which you can bring the deductible tax alone from tax procedure to MM pricing procedure. You may write a routine with the help of abapers to acheive this special reuirement. Or you may deduct the value of non deductible tax (NAVS condition) from total taxes on the PO (JEXS condition) in MM pricing. You can achieve this by adding a new condition type with 100% value of NAVS and add it to JEXS so that it will giv the deductible taxes alone.
Hope its helpful.
Regards,
AKPT

Doc. create by MIRO in foreign curr. with non-deductible tax

Hello everyone,
when I create a doc. by MIRO with a foreign currency and a partially non-deductible tax code I see that the field BSEG-TXBHW of position type W is not filled with any amount.
Somebody has already faced with this problem?
My bseg look like this:
BUZEI   KOART DMBTR   WRBTR                                                       TXBHW   TXBFW
               K           864,12    1.200,00       0,00      1.200,00     USD         0,00         0,00
W           S           862,68    1.198,00       0,00         862,68      EUR         0,00         0,00
T            S                1,44            2,00       0,00              2,00     USD          0,00         0,00

Ok

Non deductible taxes in po

dear all,
can any one explain me in detail about the non deductible taxes in po.in our company we are maintaining a tax code which is showing as A/P BED NON DEDUCTIBLE TAXES AS 100.00 PERCENT.
i couldnt able to understand why they have mentioned so.
thanx in advance.
velu+91-9789991357

IN CIN u have Excise Utlisation and excise
When we purchase any material with excise we pay the excise amount to vendor
right
when we sale the material with excise to customer then we collect the exciase amount for customer right
what ever we have collectet had to be payed to gove and what ever u have given to vendor we have collect it from govt
net efect have to be payed to govt
now there r some case where materia is excisable but we r not eligable to take a setoff against our sales excise value.
as govt sayes u can set off only that excise whic u use for production.
eg if u r buying goods like AC for office and its exciable then this excise amount can not be setof as u r not using it in ur end product.
this excise whic u cant take for setoff is call non deductable tax
for eg CST is nondeductabe as it can not be set off
so thst valuaes must be added to material cost
now what 100% in tax code
U r using TAXINJ
this is old tax procedure, before BED ire excise what not flat 16% for one material for some vendores like ssi it was 8% and for other it was 16%
so sap have made a procedure in tax code to solve
say if in J1ID u ahve give 16% for a material
and in tax code 100% then system will calculate 16%
and
say if in J1ID u ahve give 16% for a material
and in tax code 50% then system will calculate 8%
this % in tax code helps to calculat the excise amount % of %
hope now itd clear
Reward accordingly

Non deductible input tax

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