Use Tax Posting To Tax Payable and Expense Account

Question

Hello Experts,
I am trying to post tax, code 03, to an expense account instead of the customer account at the time of billing. This is for use tax posting based on the costs of our materials and should be paid by company and not passed to the customer. Currently The percentages will base from the cost of material instead of sale price but this is posting to our tax payable account and to customer account as below:
Dr Customer Account 1.27
       Cr Revenue -1.20
       Cr Use Tax Payable -.07
The desired outcome would be as below:
Dr Customer Account 1.20
     Cr Revenue -1.20
     Cr Use Tax Payable -.07
Dr Use Tax Expense .07
Thanks in advance for help.

Answer 1

Hi
Welcome to SDN Forum
As you want to post to separate Tax payable and expense account ,so maintain a separate account key and assign it to the tax condition type in Pricing procedure .In VKOA assign the G/L accounts to that account key.So you have to take your FI Team members help to get the G/L accounts.and its assignment to the tax code.
Regards
Srinath