Now to configure Non Deductible VAT in SAP
Dear Friends,
I have one specific requirement for non deductible VAT. In this case the VAT amount should be posted to Inventory and credit to VAT payable account to create the liability. We have created the separate tax code and assigned with NVV with Non deductible check mark and posting Indicator 3. But this is not creating any additional accounting entry to crediting the VAP payable account,
Is there any way we can get accounting entry like: Debiting the Inventory account and crediting the VAT payable account???
Your valuable comments are welcome
Regards,
Devendran Dhanapal,
08080265922
Hi Murali,
Thank you for your reply. I have included the NVV in the tax proceedure. But I didn't understand the role of VST here. Why should be activate the VST for non deductible. Already I have activated the NVV but not for VST and also the post indicator in VST shows 2. Is this VST plays any role in Non deductible tax??
Sorry to ask this question, It may seems to be stupid to you.
Thanks & Regards,
Devendran
Similar Messages
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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 RegardsHi 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 -
Dedutible and non deductible tax cin
Hi,
Can any one explain me what are the deductible and non deductible taxes in case of vat .
how we can configure these settings.
regards
veknkatIn case of some materials, the VAT paid on purchase of these items can be availed back from the goverment, This is called deductible tax. Here VAT portion is not loaded to material inventory, It is posted to a separete GL account as per the config and later stage it will be cleared-off by finance
In case of non-deductible VAT, the VAT amount will be loaded to material inventory. Here company can not claim this amount back from govt.
regarding configuration, u have to define a new account key in case of deductible tax and assign gl accounts
in case of non-deductible tax u can use SAP standard key NVV
hope this clarifies ur doubt
award points -
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 -
VAT - Deductible and Non Deductible
Hello Experts,
How does the SAP treat VAT Condition if it is deductible and if non deductible.
Also how does the system load the values of certain conditions to the materials (Stock), what is the factor responsible for the same.
Waht are the accounting entries that are passed during MIRO ( ref to various prcing conditions.)
Best Regards,
BhaskerHi ,
You can use JVRD condition type for deductable and JVRN for Non deductable.
If u use JVRN, at the time of GR it will be added to ur material cost. and in MIRO also the same postings as CST. -
CST and VAT amount (non deductible) is debiting in the purchase price
Hi
1) We are maintaining standard price as price index
2) Pricing procedure as TAXINJ
3) While GR the CST and VAT amount (non deductible) is debiting in the purchase price
variance, and credit in the GR/IR
4) Which has to debit in the raw material account
5) Is there is any notes for the this
6) or any other solution plz send your replyHI..
it is not done in OBq3
See in OBQ3..you define Pricing procedure.against pricing Procudure you will give the account Key against the condition type in the Pricing Procedure.
For this Account Key ..you Define it as Detuctable or not in OBCN.
so it determines whether to add to raw material account or not..
but see in early post which is also valid even if you have define the sdame in OBCN.
Hope so it helps
Regards
Anjanna -
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,
sanjuHi,
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 -
Deductible and non-deductible tax in CIN???
Hi experts
Can anybody explain me about deductible and non-deductible tax in CIN.
Explain me with clear example from purchasing with excise duty point of view .
With some example of duty with some amount .
Thanks
SAP-MMHi,
Deductable Tax :- It is not part of your inventory...You have give Separate G/L in T code OB40.
Non Deducatable Tax :- Part of yout inventory. No Separate G/L.
Supppose PO 10 Qty @ 10 = 100 Rs
Tax 4% Vat = 4
Total 104.
Now In Case of Dedutable at Time of GR , GR/IR 100 Cr
Stock 100 Dr
At time of Excise Posting
Cenvat Account 4 Dr.
Cenvat Clearing 4 Cr.
Non Deducatable GR/IR 104 Cr
Stock 104 Dr
The Following Conditions Falls in both Category as
Deduct able tax:-
JMOP - IN BED Settoff %
JEC1 - A/P Edu. Cess Settoff
JSEP - IN A/P H Ecess Setoff
JVRD - A/P VAT RM Deductable
SETOFF Must Be Maintained:-
JMX1 -- IN: A/P BED setoff
JEX1 --- Ecess Setoff Sta
JHX1 IN: A/P SECess SOTot
Non Deductable Tax:-
JMIP - IN BED Inventory
JEC2 - A/P Ecess Inventory
JSEI - IN A/P H Cess Inventory
JIPC - IN C Sales Tax INV
JVRN u2013 A/P VAT RM Non-Ded.
Condition For CVD in CIN :-
JCV1 - IN CVD e.g. 14%
JECV - IN CVD Prim Edu e.g. 2%
J1CV - IN CVD Sec Edu e.g. 1 %
Hope Help U !
Regards,
Pardeep malik -
How to show deductible VAT in PO pricing conditions tab?
Hi gurus,
I checked out this similar thread "How to create VAT tax condition in Purchase order" [https://scn.sap.com/thread/1872416]; as this is still "Not answered", here I am to ask for your help.
I can't access the VAT condition types availbale in system as per SAP standard JVRD - RM-Deductible or.JVRN - RM-Non deductible.... mentionet in the thread above.
In this ITALIAN implementation we usually find what follows in "condition" tab, which shows only the non-deductible part of the VAT amount, which is calculated as 21%, with 1% deductible and 20% non-deductible:
PBXX Net price 100,00 EUR
Price 1 100,00 EUR
Price 2 100,00 EUR
NAVS VAT purch. non deduc. 20,00 EUR
Amount + tax 120,00 EUR
Effective price 120,00 EUR
while our customer requirement is to see:
PBXX Net price 100,00 EUR
Price 1 100,00 EUR
Price 2 100,00 EUR
NAVS VAT purch. non deduc. 20,00 EUR
XXXX VAT purch. deductible 1,00 EUR
Effective price 121,00 EUR
Is this possible? How?
Thank you sooo much.
LauraThank you for your helpful answer, I would need the customing steps to realize this.
1) In customizing I define a new condition type ZZTT as follows :
path SPRO>>IMG>>Material Management>>Purchasing>>Condition>>Define price determination process>>Define condition types
2. maintain the calculation schema
path as above except the last step
Created a new calculation schema per copy of the existing one -
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+91-9789991357IN 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 -
Good Afternoon,
It is possible to use a non deductible tax code in a outgoing payment by account?
I'm trying but these codes are not available.
Thanks,
Susana CunhaHi Gordon,
I usually use these codes in A/P invoices. Now I'm trying to use that in an Outgoing payment by account, not in an A/P Invoice. These codes only work on A/P Invoices? (I know that in journal entries, to work correctly, I could not have defined the Non Deduct. Acc. in the tax code or in the other way should define a Non Deduct. Acc different from the Expense Acc.)
But could I also use these codes in a Outgoing payments by account? If yes, do you know how can I use it?
(I'm with SAP Business One 2007 A (8.00.232) SP:01 PL:08)
Thanks,
Susana Cunha -
Taxes: Deductible and non-deductible
All SAP Gurus,
What is the difference between Deductible and non-deductible taxes?
Regards,hi
In case of some materials, the tax paid on purchase of items can be availed back from the goverment, This is called deductible tax. Here tax portion is not loaded to material inventory, It is posted to a separete GL account as per the config and later stage it will be cleared-off by finance
In case of non-deductible tax, the tax amount will be loaded to material inventory. Here company can not claim this amount back from govt.
regarding configuration, u have to define a new account key in case of deductible tax and assign gl accounts
in case of non-deductible tax u can use SAP standard key NVV
regards
kunal -
In OB40 Acct key for non deductible not visible .
Dear All,
Scenario is such that I m having a cond type as JVRD it is for deductible tax it's acct key in taxinn is = JP5 it is for RAW MATERIAL DEDUCT TAX , now as i see in OB40 for this acct key = JP5 ( RAW MATERIAL DEDUCT TAX ) it is displaying there . now on the other hand I m having another cond. as JVRN it is for RAW MATERIAL NON DEDUCT TAX , it's acct type in taxinn is JP6 ( RAW MATERIAL NON DEDUCT TAX ) now as i see in OB40 for this acct key = JP6 ( RAW MATERIALNON DEDUCT TAX ) it is not displaying there . I need why this JP6 ( RAW MATERIALNON DEDUCT TAX ) is not displaying in OB40.
regards,
sap11Hi,
Hi,
In OB40 you are not able to find out JP6 because the config of JP6 is same as NVV. The config of JP6 can be seen at OBCN.
The person who has configured the pricing procedure has configured JP6 as non-deductible which is is similar to NVV and used it in place of NVV.
Hence in the pricing procedure not used NVV & used JP6.
In OBCN, during configuring the a/c key you have following options in Posting Indicator
1 - No posting (no posting in FI)
2 - Posting in different line (posted to diff G/L a/c which is assigned in OB40)
3 - Distributed to expense / revenue (tax is added directly to material)
Hope this answers your query.
regards,
Anand -
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 regardsDear 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 -
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
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