Tax/VAT Question

Hi all,
Some foreign companies charge us Tax/VAT and we would like the ability to override the Tax amount on certain documents.
When posting AP invoices there is no "Tax Amount" column but it is not available under form settings to make visible and active.
For AR invoices we can make the Tax amount visible but cannot make it active to enable the user to override Tax amount.
Is this something we can change without an add-on?
Regards,
MB

Hi,
You cannot enter the Invoice without having the tax code. The system would not allow you to add the document. Also, changing the tax amount is also not possible.
You have to check some workaround which could help you but also considering the fact that your reports are not affected and show the correct data which needs to be submitted to the legal authorities.
Check by having an Exempt tax code for such documents so that the document is booked with zero tax and then having a manual JE, if the tax needs to be booked/charged.
Test in Demo and check the reports.
Also, the above is what i understood as a problem. May be I am wrong in interpreting. Please check other feasible suggestions and good workarounds from users who are handling such issues.
All the best.
Kind Regards,
Jitin
SAP Business One Forum Team

Similar Messages

Excise and Sales Tax/VAT related notes.

Hi,,
Can anyone provide me notes on Excise and Sales Tax/ VAT related issues(Pricing Proc/Condition Types/Sceanrios etc) at my mail id [email protected]
Regrds,
Binayak

Hi Pratap,
For free goods you have to pay excise duty, that is why i recommend you to follow a new pricing procedure, where the Price Condition type is statistical(to calculate excise) and give payer as self if the excise duty you would not get from customer,\
1.Create invoice and excise invoice.
2. If you don't want to to hit self(given in document header partner) create proforma and excise invoice
revert if you require any clarrification.
regards.

Creation of Tax Code - Service Tax + VAT

Hi,
I want to create new tax code
Service Tax - 4.12% + VAT 5%.
The steps i followed is in FTXP,
1. Against JSRN given value - 4.12
2. Against JVRN given value - 5%
But it gives me error. Define tax code at level 510.
I want to create new tax code SV which includes Service Tax + VAT.
Kindly let me know the proper way to do it and where i am going wrong.
Regards
Manisha

Hi,
My problem is not yet solved.
I want Service Tax - 4.12% + VAT-5% under one Tax code SV.
I repeat I have created tax code SV
In FV11,
for JSRN i give tax code SV and value 4.12% for Service Tax but for JVRN when i give tax code SV and value 5% it gives me error :
'Tax indicator SV has percentage rate 4.12%'.
Kindly let me know proper solution, i have checked settings are all proper as per your replies.
Just let me know how do i create the two taxes JSRN and JVRN under one tax code SV because SV accepts only one fixed value.
Regards
Manisha

Cash Discount after Tax & VAT

Hi , Friends,
My client has a scenario where in some purchase orders , he receives the discount after tax.
when I add the discount (absolute) after tax in the m/08 , the net price changes and the tax is calculated on this new net price which is wrong & not required .
Friends tell me what chnages I need to do so that discount is calculated after Tax & VAt and the ideally what should be the accounting entries in MIGO and MIRO.
if the gross price is Rs 100
tax is Rs 10
and discount is Rs 5.
Thanks in advance

Hi Dgn,
What type of industry sector your client belongs to. But as a standard practise, cash discounts are captured before adopting the Tax or VAT through Invoice.
We will calculate the accounts payable:
Usually below is the scenario for taking the discounts from the vendor in the process of purchaing:
will take your given figures/values:
Eg. (1)
                           Total gross price:      100.00 INR            (as per your client)
                           Discount:                       5.00 INR          (-ve)
                                                                                95.00 INR
then adopt, Tax (10%):                             9.50 INR      (10% on gross ( = 9.50 INR) :   goes to govt. for tax depart.
that means, the total amount:                   85.50 INR      payable to the vendor (A/P)
But, where as in your case /as per client,
(2)
Taking your eg. Total gross price:      100.00 INR            (as per your client)
                           Tax amount: (10%)     10.00 INR            (10% on gross = 10 INR)    : goes to govt. for tax depart.
                                                                                110.00 INR
then taking,       Discount:                         5.00 INR      (-ve)
that means, the total amount:                105.00 INR      payable to the vendor (A/P)
(1): 85.5 INR   < (2) : 105.00 INR
So, in 2nd scenario, your client has to pay more to their vendors & also more tax in the process of purchasing compare to the usually procedure (1). Other wise your client has to pay extra 20.00 INR. Hence option 1 is the rightone.
Pls check with your client again and suggest them further.
Hope you understood.
Regards,
Sapsrin.

CREDIT NOTE FOR SALES TAX/VAT

WE WANT TO PREPARE CREDIT NOTE FOR VAT WRONGLY CHARGES IN THE BILL. WHEN WE ARE PREPAIRING THE DOCUMENT (INVOICE CORRECTION) WITH REFERENCE TO THAT BILLING DOCUMENT, THE DIFFERENCE VALUE OF(TAX/VAT) IS NOT SHOWING IN NET VALUE AND IT IS NOT PROCESSING FOR INVOICE(CREDIT NOTE).SO HOW TO PREPAIR CREDIT NOTE FOR WRONGLY CHARGED VAT?
Please guide .

Hello,
It's almost impossible to make a credit note in this situation.
You'd better cancel the original invoice and create a new one using the correct VAT code.
Regards,
Johan

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.

China - Custom Tax, VAT Tax Handling

Hi SAP friends
I have the problem of Import custom tax and VAT tax for puchasing.
It is Domestic Sales scenario. Need to purchase material from oversea vendor.
Oversea vendor sell mateiral to China company RMB 100 per PC.
Mainland company needs to pay custom for custom tax 20% and the custom tax is non-deductible. Custom tax is 100*(20%) = RMB 20.
Then, Mainland company needs to pay China government VAT tax(17%),
VAT tax is 100(1+custom tax)(VAT tax)-100 = 100(1.2)(1.17) - 100 = 40.4
So, VAT tax amount = Material price * custom tax * VAT tax
In PO, I use ZOA1 custom condition type to input Cutom tax amount for Custom tax and input Tax code for VAT tax.
When good receipt, RMB 120 post to Material stock account. RMB 100 post to GR/IR. RMB20 post to custom account
It still be fine.
When do LIV, RMB 100 clear GR/IR. RMB 17 post to VAT tax account becasue it use RMB 100 as base amount to calculate VAT tax. RMB117 post to AP vendor account.
Actually, mainland company only pays RMB100 to oversea vendor and the Tax amount should be include Custom amount. Corrrect VAT tax amount is 100(1.2)(1.17) - 100 = 40.4 (use RMB120 as base amount to calculate VAT tax), but not only RMB 17 . But, in LIV payment to vendor now is RMB120. It is not fulfill the requirement of mainland company.
Do anyone have experience about China Import purchasing material. And, would share how to settle the payment of vendor and how to make use (Material price + Custom tax amount) as base amount to calculate VAT tax amount?
Thanks a lot for your help!
Mag

It may helpful hint before going to configure.....abt the tax codes..
Value Added Tax (VAT) was implemented in China in 1984. Initially, the tax was levied on 24 specified
items. The need for constructing a socialist market economy system in China resulted in the proclamation
of 'The Provisional Regulation of the People's Republic of China on Value Added Tax' on January 1, 1994.
Value Added Tax in China is one of the important sources of fiscal revenues for the government,
especially the central government. The implementation of VAT is done by the State Administration of
Taxation while the customs collects the import VAT.
..******note this point it may helpful*********
The revenue earned from VAT is divided between the central (75%) and local government (25%).
The list of VAT taxable items and the rates in China can be understood from the following:
Coverage of Collection
Rate
Exportation of goods
Edible vegetable and grain duplicates
Agriculture, forestry, aquatic products, products of animal husbandry
Book, magazines, newspapers
Tap water, cooling, heating, hot air supplying, gas, hot water, natural gas, liquefied petroleum gas,
coal/charcoal products for household use
Selected non-metal mineral products, Selected metal mineral products, coal
Chemical fertilizers, feeds, agricultural machinery, agricultural chemicals, plastic converting film for
farming 13%
Crude oil, mine salt and other goods and services not listed above
17%
VAT in China is payable by individuals as well as enterprises who are associated with selling
merchandise, providing services related to processing, repairing and assembling and import of goods.
VAT Taxpayers in China are categorized into two sections, normal taxpayer and small taxpayer, depending
on the turnover of the goods and services on sale and the accounting system condition.
The amount of VAT payable by the normal taxpayer can be calculated by the following:
Output tax payable for the current period u2013 Input tax payable for the current period = Tax payable
The amount of VAT payable by the small taxpayer is as follows:
Sales amount x Applicable rate = Tax payable
(The applicable rate is 4% for commercial sectors and 6% for others)
Certain items and services are exempted from VAT. These include the following:
u2022 Instruments and equipment imported for direct use in scientific research, experiment and education
u2022 the agricultural production materials as ruled, the self-produced primary agricultural products sold by
Agricultural producing units and individuals
u2022 Imported materials and equipment granted, gifted by foreign governments or international organizations
u2022 Contraceptive medicines and devices
u2022 Articles imported directly by organizations for the disabled for exclusive use by the disabled
u2022 Materials imported directly to support the poverty relief and charity cause donated freely by overseas
natural persons, legal persons and other organizations
u2022 The taxable services provided by individual disabled laborers
u2022 Antique books purchased from the public
Certain reforms have been implemented in particular areas of China in 2004 with regard to the VAT.
chk the website http://www.cabc.org.cn/news/2006-1-19/2006119145600.html

Reports for Mexico Taxes - VAT

SAP Gurus,
Can you please provide some information, on the standard reports available in SAP for Mexico Taxes (VAT & Withholding). I have found only this report in our system.
RFVATRTNMX - VAT Return (Mexico)
Thanks.

Hi vevek,
thanks for the info,
Unfortunately this report shows me the details after the transaction is done.
What we need, is this, I create a PO of Rs 100 today, the delivery of that Po is in 6 months, I am wanting to see that when i run a report, I see that the Rs 100 PO is having a Rs 20 tax to be paid, Hence the total will be 10020 =120. right now in Me2n I see the amoutn as Rs 100 and not 10020 =120
Please advice

Input Tax; Out put tax & VAT accounts

HI,
Please let me know what are the GL account required for the above taxes, with example GL account numbers.
Consider, for example Series 1XXXXX Liabilites; 2XXXXX Assets; 3XXXXX Income & 4XXXXX Expenses.
Thanks
Partha

Hi
We will maintain some accounts for input/out tax and vat accounts. Take one simple sinario and what are the Tax GL accounts required for : Input Tax; Out put tax & VAT accounts
I have a little bit confussion, about tax clearing accounts, Ex: cenvat clearing account, cenvat payble account, cenvat account.
Like many accounts are there in the system. Please let me all the accounts (minimum requirement) requirement in chart of accounts.
Thanks
Partha

Condition techniques/ TAX Vat

Hello Sapients
We have a sales company in Europe, and we are selling goods in multiple european union countries.
Now we have just started selling goods in couple of other EU Countries. I need to configure Tax (VAT) for those transactions. I have Tax codes that I need to create. I know I can create new tax codes using FTXP. But I need to know who what other configuration I need to do. I am not SD consultant so I do not have good idea on condition technique. We also do not have any SD person in ur team, so i need to do that.
Can somebody please send my steps on configuring this new tax codes, with some explanations.
Thank you
naman

Hi,
Steps:
Creation of pricing procedure Steps:
(1) V/03 = Create condition table
(2) V/07 = Create access sequence
(3) V/06 = Define condition type
(4) V/08 = Define pricing procedure
(5) OVKK = Define pricing procedure determination
(6) VK11 = Maintain condition records
Explanation:
in V/06 you need to create a condition type for VAT.
and Access sequence according to the requirement. and see that the same will be taken in the Condtion tables.
Add this condition type in the pricing procedure.
Maintain the condition record for the same.
FTXP: create the tax code for the same.
Pricing is the combination of creating correct pricing procedures that map the business needs and processes such as
correct pricing and discounting, and keeping to the legal requirements placed on the business, such as adhering to
the tax laws of the respective country.
A pricing procedure consists of a list of condition types in defined orders, such as price, less (u2013) discount, plus
tax. Some controls exist in the pricing procedure.
Pricing is the calculation of costs (for internal purpose) and revenues (for external purpose) by following tax class
of a particular country.
The pricing procedure is also used in account determinations. This determines the general ledger (GL) accounts to
which type prices, discounts, and taxes must be posted. The condition types in the pricing procedure are linked to an
account key. This key in turn is linked to the GL Accounts. This shows the integration between the pricing in the
invoice and the Financial Accounting (FI) Module.
Best Regards
SRI

Input sales tax/ VAT?

Hi All
I belong to edible oil manufacturing industry. Here we produce an acid from waste of edible crude oil. Can we enter input tax in sap because it is very difficult to trace from which batch or type of raw material this acid is produced.

hi,
yes you can assign sales tax /vat to material fro tcode VK11 as follows with the different combination. system will automatically calculate tax code when you will create sales bill.
Regards,
mukesh

Inclusive Serice Tax + Vat Configuration

Dear Friends,
I need to configure entire tax procedure which caliculates Inclusive Serive tax + Vat on open item. These service tax and Vat amount should goes to separate G/L's respectively.
Let Say...
Open Amount: 2000 GBP
Service Tax :   3.957% (Caliculates on Open amount 2000 3.957 /100 = 79.14 GBP*)
Vat :                 9.090% (Caliculates on Open Amount 2000* 9.090 / 100= 181.81 GBP)
In a invlice document it should be displaly like......
Amount          1739.05 GBP
Service Tax:      79.14 GBP
VAT :                181.81 GBP
Total:               2000      GBP
This service tax and Vat amount should be goes to seperate G/L Repectively.
Please let me know how to configure it into SAP to map the above requirement.
Your Help is in this regard really appreciated.
Thanks,
Joshi

Dear Friends,
I need to configure entire tax procedure which caliculates Inclusive Serive tax + Vat on open item. These service tax and Vat amount should goes to separate G/L's respectively.
Let Say...
Open Amount: 2000 GBP
Service Tax :   3.957% (Caliculates on Open amount 2000 3.957 /100 = 79.14 GBP*)
Vat :                 9.090% (Caliculates on Open Amount 2000* 9.090 / 100= 181.81 GBP)
In a invlice document it should be displaly like......
Amount          1739.05 GBP
Service Tax:      79.14 GBP
VAT :                181.81 GBP
Total:               2000      GBP
This service tax and Vat amount should be goes to seperate G/L Repectively.
Please let me know how to configure it into SAP to map the above requirement.
Your Help is in this regard really appreciated.
Thanks,
Joshi

Defining CST Tax, Vat Tax

Hi all,
I am defined CST Tax, Vat Tax in SD-Log-Taxes.( Cust Tax Classification, Mat Tax Classification). Accouting point of view i want to show the entry to my client. i have taken key combination Cust, Reg Del Plant, State, Tax Clas Cust, Tax Clas Material. how i can proceed further in the same time FI people integration also required. pls help me complete picture in this regard.
from FI , SD point of view (The result is how the accounting entries should happend regarding Taxes)
Pls help me in this regard.
Thanking You,
Meera.

Dear,
For Tax Procedure follow following path,
SPROFinancial AccountingFinancial accounting global setting Tax on Sale and Purchagecheck Calculation Procedure
(click)--Define procedure(Double click) and select your Tax Procedure and add these two condition as we did it in Pricing procedure also create and assign Account Key.
Then use Tcode: FTXP -- press enter-- put IN in country field-- name Tax code in TWO Digit-- enter and fill the detail in appear
boxgive the percentage against Condition type as desiredclick on TAX ACCOUNT ans assign the relevent G.L. Account.
Regards
AJIT K SINGH
HAPPY TO HELP U

VAT Tax determination- question about "Requirement" for Table-Is mandatory?

Hi everybody,
I am having problems to determine the appropriate VAT tax percent in some cases in Mexico.
In Mexico for billing at the border with other countries the VAT tax percent is 11% and for billing inside the country the VAT tax percent is 16%. For determine the VAT tax percent the sequence access is MWST and is assigned to the condition type MWST. For cover the border cases we create a table 989 with the fields: Distribution Channel/Plant and VK11 is fill out with this information. With these parameters is possible to determine successfully the VAT percent of 11% at border sales point.
The problem that I have is related to the u201Crequirementu201D assigned to the table 989: Distribution Channel/Plant. This table has assigned a standard requirement number 7- Domestic Business and when billing to a customer with address of MX (Mexico) as LAND1 at general data section of customer master data, the VAT tax percent of 11% is obtained successfully, because all the fields of the table are filled. But when billing to a customer with address of US ( United States of America) as LAND1 at general data section of customer master data, is not possible to obtain the correct VAT tax percent of 11% even all the fields of the table are filled.
I do not know if the problem is the requirement number 7- Domestic Business, but if I change for the requirement 8- Export Business then the opposite is occurring. For US customers the VAT tax percent is determinate successfully and for MX customers not, because the fields of the u201Crequirement u201Care not filled.
So, I am wondering if:
1.     Would be necessary to create a new requirement for combine the 7- Domestic Business and 8- Export Business requirements or exist one like this? I do not need to conditioning anything
2.     What happen if I left in blank the requirement field, I mean if I do not assign anything. I was doing testing for both customers and the VAT tax percent was determined correctly. But I do not know if is correct do not assign a u201Crequirementu201D to the table of the sequence of access MWST.
Thank you in advance for your help!

OK I think I understand but here is where I am at now. I originally created a regulation that requires a license when shipping to certain countries out of the EU. I set the regulation as an Export reg did all the necessary config and was able to assign licenses automatically where needed.
Has I was testing the solution I could not find sales docs or deliveries for some of the materials and finally found out they are being moved on NB PO's.
So I changed the reg to include imports etc., classified with import control class etc. but I am seeing a couple things that don't make sense and tells me my config isn't quite right.
I finally do see that the system at least recognizes the new legal reg in the screening now. before this it had not. But it is still telling me it can't find any relevant country.
The other thing the document itself only shows under Display Existing Export Documents even though in the log it says it's an import document and when I go to the Import log there is no data.
Before I realized there was a note to change the Import to export on transfer I assigned the PO types to export orders and I am thinking that's why they are showing in the export list but I woul have tought that it would say it's an export doc which it doesn't.
Any ideas?

VAT tax rate question --invoices

Hello, I am working to configure NL VAT tax for the Netherlands. I have applied the EBTax Configuration Library and completed additional required setups. For Payables, the standard tax rate is being applied to each invoice upon creation. Per business requirements, the tax rate is situational or should be optional, (sometimes Reduced rate, or Exempt rate applies or both). Looking to eliminate default tax rate, having all available for a single transaction. I need a more manual entry approach, providing the user the ability to apply taxes as they are applicable. If anyone is working toward similiar goal input would be appreciated.
Thanks. Amanda.

I have figured it out that there were was extra record with Active_flag = 'N'
Cheers

Tax/VAT Question

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