Tax Accounting in payable invoices

Hi
In payables, a tax accounting on an AP invoice is defaulted from the tax code setup.
Unlike charge account, variance, etc the TAX account cannot be modified using the supplier account generator. The requirement is to have tax accounts hitting the same Balancing segment as the charge line.
Ex. An invoice has
Charge          01.1000.000          60
Charge          02.1000.000          40
Tax          01.1200.000          10
Liability     01.2000.000          70
Liability     02.2000.000          40
The requirement is
Charge          01.1000.000          60
Charge          02.1000.000          40
Tax          01.1200.000          6 (split into the BU segments)
Tax          02.1200.000          4
Liability     01.2000.000          66
Liability     02.2000.000          44
Can anyone suggest a workaround for the same. Multiple tax codes would not be a good option here as the balancing segments are many.
Can Subledger accounting allow to change the tax accounting entry as per the requirement. If so kindly provide some inputs
Thanks
Archana

It can be achieved in SLA.
Event as Invoice
Journal Line : TAx
ADR : Set a condition on basis on BSV in liability account
Hope it works.

Similar Messages

Want to Create accounting for Payable invoices

Dear All,
Please guide me, How can i create accounting for specific invoice. but i don't want to select standard solution means to select the create accounting for invoice, i just want to post entries in ap_ae_headers_all and ap_ae_lines_all and ap_accounting_events_all.Please waiting for the kind response.
Thanks & Regards

Open your AP invoice > Click on Actions button on the bottom left hand side > Validate it first > click on actions button again > then select create accounting in those options.
This accounts only that particular invoice. It is called online accounting, if i am not wrong.
Regards,
Srini

AP Invoice - How to offset Tax account

Hi All,
   We have requirement to automatically offset tax account in the invoice distribution.
For example - If invoice is for 240 pounds with tax 40 pounds and we are using accounting rule - Automatic Offset Yes with Account Type.
Account structure-- Balancing segment - cost centre - account
Default Liablity Account - 100-000-9620
When Accounting is created
Dr - 100-222-9510 (Item expense account ) - 200 Pounds
Cr - 100-222-9620 (Liablity account) - 200 Pounds
Cr - 100-000-9620 (Liability Account) - 40 Pounds for TAX
Dr - 100-000-9752 (Tax Account)      - 40 Pounds
What we want is
Dr - 100-222-9510 (Item expense account ) - 200 Pounds
Cr - 100-222-9620 (Liablity account) - 200 Pounds
Cr - 100-222-9620 (Liability Account) - 40 Pounds for TAX
Dr- 100-222-9752 (Tax Account)      - 40 Pounds
we want Cost centre of tax account picked from item expense account.
Please let me know if is there any standard functionality to do this , if not can you suggest customisation for this
Thanks,
Jay

Hi,Jay
If you are using EBS R12,just try the SLA(Subledger Accounting) to solve this problem.
One suggestion is you may use the journal Line Type called 'Recoverable Tax’ which under the Subledger Accounting Method to define the tax account’s cost center.
Regards,
Vincent

Payables - Tax on PO Related invoice should go to TAX account

Hello all,
We have an issue in R12.1.3 where if we match a PO to an invoice, then calculate tax on the invoice, the tax goes to the PO liability account and not the tax account.
Has anyone else come across this issue, and how did you resolve it?
Thanks

in standard setting the freight amount gets debit in the stock or inventoy account and gets credit in the fright accoutn at the time fo gr so it means the amount of frieght is gettting invenotrised
now at the time of IV IN MIRO SYSTEM CREDITS THE VENDOR ACCOUNT AND DEBITS THE GR/IR account
if u want to settele the planned delivery cost then select the laout variant for the planned delivery at item level
or in case if u want to make use of the unplanned delivery cost then u r doing the right step
but as u simulate the g/l accounts sytem will debit the inventory or stock account for it rather then frieght account (i belive so )
as the uplanned delivery cost may be getting inventorised that is added to the material price
and as u said u dont want to have tax calulated on the unplanned delivery cost then i suggest u to post it as subsequent debit and there do not make use of the claulate tax option or do the direct posting for the g/l account option

Oracle Payables Witholding Tax Accounting Entries

Can someone please confirm the accounting entries in regards to withholding tax in Oracle Payables.
Are these correct?
At the time of payment creation:
DEBIT: ACCOUNTS PAYABLES $100
CREDIT: CASH $80
CREDIT: WITH-HOLDING TAX PAYABLE $20
When witholding tax invoice is created:
DEBIT: WITH-HOLDING TAX PAYABLE $20
CREDIT: ACCOUNTS PAYABLE $20
When witholding tax invoice is paid:
DEBIT: ACCOUNTS PAYABLE $20
CREDIT: CASH $20
Is WITH-HOLDING TAX PAYABLE a liability account through all entries or is there an expense account in the picture as well.
Thanks
Asim

Hello Asim.
Yes, the accounting entries are correct and there are no expense accounts involved in this process.
Octavio
(Chartered accountant)

Creating a Vendor and Accounts Payable Invoice

Hello Everyone,
At the moment we are using transaction FK01 or XK01 to create a Vendor on the SAP system. We want the process of "Creating a Vendor" and "Creating Accounts Payable Invoice" to be available on Portal which allows us to automate some part of our business process.
Could anyone suggest me a proper approach for this requirements. I would appreciate your help. It is a bit urg*nt.
Regards,
PG.

I would check in SE37 to see if there is any other BAPIs. Alternatively you could debug the transaction in R/3 to see which function modules it uses. It's possible that there is no BAPI, but there is a non RFC function module for creating a vendor. In that case, you can create a "wrapper" for it, ie your own function module that is rfc enabled and that simpley forwards the call internally to the function module that creates the vendor.
I would also search the ABAP forums to find out if there are any function modules that provide this operation. If you don't find any threads you can try posting a question. It's best to post questions concerning BAPIs and function modules in the ABAP forums (or related forums).
Failing all this or if none of the above fits your requirements, you could create your own BAPI to perform this operation. But 9/10 there is a standard function module to perform most operations. Don't worry if it's not rfc enabled like a BAPI, just create a wrapper around it.
Cheers,
Dion

Account Payable Invoice Creation

Hi All,
I just want to know the Account Payable Invoice creation screen.
How many data hit by invoice screen for master table
AP_INVOICE_ALL
specially invoice_date and gl_date column.
Please help.
Regards

Hi,
Did you check the settings in VKOA. Check Sales Org/ Order Reason. Check whether GL Accounts assigned is correct or not. Also check the settings in Account key
Regards,
Jigar

Open account payable invoice migration

Hi All,
We have a scenario where we have to migrate open account payable invoice from legacy system to sap system .Please share relevant knowledge if anyone has worked on the same scenario.
Thanks in advance.
regards,
Twinkle

Hi Twinkle,
Y cant u use LSMW (Direct input method/Recording method).Tcode f-43.
if u want to use Direct input method ,
Analyze these below details if it is suitable for ur requirement or not
Object:--0060
Method:-0000
Programe name:-RM06BI0( Batch Input for Purchasing Info)/ u want to more details and what are the fields the data is updating, better to see in se38.
if u want to use Recording method, u can
Because y am suggesting means because iam flexible to LSMW.
Onemore thing if u have to do more coding before uploading i suggest u to go for BDC or BAPI.
Reward points if helpful.
Thanks
Naveen khan
Message was edited by:
Pattan Naveen

Tax When capturing AP invoice

Hi Gurus
We are getting the following situation:
The supplier charge us 2 service in one line. A portion of the service is vatable and the rest tax exempt.
The Purchase requisitioner does not know the split at the time and raise it as fully vatable. We can not capture the invoice as it is.
is it possible screen in the tax tab the system allows to c
capture a base amount which would be the vatable portion the system would then calculate the VAT on this amount and the rest would be posted to cost with no VAT?
If we can not get this facility how can we resolve the issue above.
Please advise,
Thanks,
Themba

Hi,
This hold can be caused by 3 reasons:
1) No budget exists for the account in the accounting period on the invoice. To remove it create a budget in General Ledger and resubmit invoice validation.
2) Invoice account is not equal to the purchase order account. Enter different account for
invoice distribution and resubmit invoice validation.
3) Detail account not assigned to a parent account. Assign detail account to parent account and
resubmit invoice validation.
References:
R12: Payables Holds Explained - Why They are Applied and How to Remove Them [ID 782398.1]
Regards,
Ivruksha

Tax Accounting in Projects

We are using event/event distribution method. Our accounting policy which is being consistently followed for last 7 years requires, revenue to be recognised gross of taxes. Hence the tax account should also be my revenue account when the transactions are interfaced into Receivables.
Is there any solution available in Oracle, even with a little of workaround using a custom report to take care of this.
Accounting at the time of EVENT revenue distribution and interface revenue to general ledger -
Unbilled Receivables A/c Dr. 1000
Cr. Event Revenue A/c 1000
Accounting when the invoice is interfaced in AR from the AR transaction window -
AR a/c Dr. 1100
Cr. Unbilled Receivables A/c Dr. 1000
Cr. Sales Tax Payable 100
I want this sales tax payable also to go into Event Revenue A/c. We have multiple Event revenue Accounts based on Customer Categories in AR. We have used SQL codes in Auto Accounting Rules to generate Event Revenue A/c.
Is there any Tax Accounting function, that I can use in Auto-Accounting in Projects to over-come this problem?

You may be aware of the following, if not the good back info for you I think:
The tax calculation on an invoice in projects is driven by how you set up Etax. Use the navigation
Responsibility: Tax Manager
Navigation: Defaults and Controls -> Applicable Tax Options
Application name: Projects
Then create your defaulting order of precedence.
Calculating tax in OP
yes you are correct the actual tax amount is not calculated in OP. The tax codes are applied at line level to the lines sent from OP to AR. So you have two options:
1. Create a modified draft invoice print that shows the tax amount calculated
2. You may want to challenge why project managers are required to sign of amounts including tax. They could not influence the tax amounts (they are legislated) therefore there does not seem much point in them approving thois apsect of the invoice. All they are approving is that the correct tax code has been used, which is shown on the draft invoice. Failing that you could introduce a project status workflow that requires project managers to approve that the correct tax code has been selected on a project before it is allowed to be billed.
Sorry I can give you a specific solution, but hopefully the above will help

Tax Report for PO Invoices

Dear SAP Friends,
I have a requirement to create a report program for Tax paid and accrued for POs.
User need the information below:
Plant Location
PO #
Line#
Line Item
Vendor Name
Invoice #
Invoice Date
General Ledger Date
Date Paid
Clearing Document #
Cost center or WBS for payment
Account code for payment
Gross Payment (including Sales Tax)
Sales Tax Paid to Vendor
Use (Sales ) Tax Accrued
Base Amount
Can anyone help me from where I can get all the above information to send ABAPer for program creation.
Thanks & Regards,
Paul

Hi,
Use Report MIR5
MIR5 - Display List of Invoice Documents
You can use the report Display List of Invoice Documents (RMMR1MDI; transaction code MIR5) to display a list of the invoice documents.
In addition to the existing program Invoice Overview (transaction code MIR6), here you have extended selection criteria and display options:
o   Gross invoice amount
o   Unplanned delivery costs
o   Currency key
o   Exchange rate
o   Entry date
o   Entry time
o   Choice between invoice and credit memo
o   One-time customer with a one-time account
In the Invoice Overview program you can also change invoices, whereas in this report you only have display options.
By entering the following data you can increase your selection criteria:
o   Entry type
o   Invoice status
o   Restrictions
Output: -
In the output list, the report displays the numbers of the posted and the parked invoice documents. The system does not display invoice documents that do not have a corresponding FI document, for example, invoice documents that are planned for verification in the background, or that have already been verified with errors.
    From the output list, you can display the following:
    o   Invoice document
    o   FI document or list of FI documents
        If more than one FI document is assigned to an invoice document, then you can display a list of all corresponding FI documents.
    o   List of all follow-on documents for an invoice document.

Extended Withholding Tax Rate change at invoice Level

Hello Every One
We are implementing Extended Witholding TAx in US.
How can i achieve Below
Requirement 1:
At the time of invoice the business want to override the Tax rate, but i am not sure how it will happen since tax rate % is defined in tax codes and tax codes are assigned in the vendor master? The reason for this is that if one vendor has existence in two different countries then our company will with held tax at different rate.
My Solution: I will define one tax code with 100% rate and then if the that vendor has to be deducted at 30% rate. Then in the vendor master in the exemption % field they can put 70%, so at the time of invoice it will be calculated 30%, but the draw back of this is that it has to be maintained by the master data team and the invoice clerk cannot do it right away if the requirement gets changed. (if someone has other than this please let me know)
Requirement 2:
How we can with hold tax at line item level, is it possible?
for example if we receive an invoice from a vendor for 2000$. Out of 2000$ $1200 is belong to service which is taxable and 800$ is belong Material which is not taxable.
Requirement 3.
What will be the configuration setups of with holding tax account in FS03
Best Regards

Refer the sdn thread posted on similar issue
Please search in sdn before posting .
[SDN URL|Set exchange rate indicator in billing;

Changing account assignment at invoice receipt (MIRO/MIR7)

Hello gurus,
I have got two questions concerning changing the account assignment of a PO item at invoice receipt.
Example: We have a PO item with account assignment category K and non-valuated goods receipt. Now, after GR, we receive the invoice and want to post it using MIRO.
During this process we notice that the correct account assignment category would have been A. In MIRO we can change all accounting information (apart from the account assignment category). So we delete the assigned G/L account and cost center and enter the correct asset master number in the asset column. Then we post the invoice.
Result is that the invoice is posted to the asset, the vendor and the tax account. So, everything seems to be ok, except that the account assignment category in the invoice document is still K.
Now, my questions:
1. Is it allowed to change the accounting information as described, even if that means that the account assignment category is u201Cwrongu201D afterwards? I.e. is this a standard process?
2. This works fine using MIRO, but when we try it to use MIR7, when posting the invoice there is a cryptic workflow error message (Message no. 00398) stating something like u201CPlaceholder for batch input error text, this message is not output. Please notify system administration u2013 Problem with S.u201C [sic!]
Any ideas on this?
Thanks in advance
Alicia

Hi Praveen,
no, there is no error in MIR7. But the invoice is not posted and the workflow shows the error message given in my original posting.
And the point is that I cannot change the K to A in MIRO or MIR7, but I can change G/L account, cost center, asset etc. So after I change it, I still have account assignment category K, but no G/L account and cost center given. Instead, there is only the asset number.
This looks a bit funny to me and I wondered, if this could lead to any problems, because something like that would not be allowed in the PO.
Cheers
Alicia

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

Default "Recoverable Tax" account - cost center segment to specific value

Dear all,
I have tried couple of days to see how to use subledger accounting setup to default cost center of recoverable tax account (recoverable tax account - cost center segment to specific value which is based on the cost center of invoice distribution), however it is not succesful.
I think might be some of the setup is wrong, please see below my setup steps:
1) Set up Account Derivation Rules
Copy rule code AP_INVOICE_DIST to T_AP_INVOICE_DIST with adding a source ='Recoverable tax", condition = Invoice Distribution Account is not null
2) Setup Journal Lines Definition
3) Setup Accounting Accounting Definition
Please advice.

Madhu,
I did some investigation too and it looks like this is only way i can do this.
Do you think of any User Exit name, which i can use it here?
Thank you and appreciate your help.

Tax Accounting in payable invoices

Similar Messages

Maybe you are looking for