Documents related to Taxation

DOCS related to Taxation

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Taxation, Cross-border  ...

SAP Best Practices Tax Account Structure:

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21600000 - Reserve for Deferred Taxes
G/L Account Number
(I_SAKNR)
21600000
G/L Acct Long Text (SKAT) Reserve for Deferred Taxes
G/L Account Group SAKO
Balance/ P&L Account Balance
Account Category Tax
Account Purpose Account for reserve
Account Hierarchy Level ASSETS | CURRENT ASSETS | ACCRUED INCOME | Tax accrual and deferral
Used in Conguration or Master
Data
Where Used in the Global
Account Determination or
Master Data
Account Usage In the documentation group for Accrued Income, the following accounts are described:
G/L Account Number (I_SAKNR) G/L Acct Long Text (SKAT)
12550000 Unbilled Revenue
12561000 Prepaid Expenses
21600000 Reserve for Deferred Taxes
21730000 Freight Clearing Account (MM)
21740000 Customs Duty Clearing Account
(MM)
A prepaid expense is a type of asset that arises on a balance sheet because of business making
payments for goods and services to be received in the near future. While prepaid expenses are initially
recorded as assets, their value is expensed over time as the benet is received onto the income
statement, because unlike conventional expenses, the business will receive something of value soon.
Process Related Information Prepaid Expenses is used for costs which are paid over a period of time and extends the nancial year.
The prepaid expenses for the following nancial year are posted to this account.
Unbilled Revenue is used for received revenue where no invoice is created yet and no revenue can be
posted.
Test script for J58
Process step Enter Accrual/Deferral Journal Entry
Posting Examples 1. Prepaid Expenses
Debit Credit
63004000 - Insurance 800 EUR 12561000 - Prepaid Expenses 800
EUR
In the new year, the expense is posted into the correct period:
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Debit Credit
12561000 - Prepaid Expenses 800
EUR
63004000 - Insurance 800 EUR
Accrual is posted:
Debit Credit
3333 Vendor (21100000 Payables Domestic)
1200 EUR
11001000 - Bank 1 - Bank (Main) Account 1200
EUR
Invoice is paid:
Debit Credit
63004000 - Insurance 1200 EUR 3333 Vendor (21100000 Payables
Domestic) 1200 EUR
Invoice is received and posted:
An example of expensing prepaid expenses would be if a company had a one-year insurance
policy at a cost of 1200 EUR in August. For each month, 100 EUR of prepaid insurance would be
posted to the income statement. During the period-end, accrual or deferral booking might be
necessary. These are entered in the last day of the period and the equivalent reversal is
generated in the rst day of the following month.
2. Unbilled Revenue
The company receives the amount of 10000EUR but only 9100EUR is billed so far. The rest of
729 EUR is posted to Unbilled Revenue and the Output Tax for this amount is posted.
Debit Credit
11001000 Bank1 Main Account 10000EUR 12100000 Receivables Domestic 9100
EUR
12550000 Unbilled Revenue 729 EUR
22000000 Output tax (MWS) 171 EUR
12541000 - Receivables from Tax Authorities (no recon acct)
G/L Account Number
(I_SAKNR)
12541000
G/L Acct Long Text (SKAT) Receivables from Tax Authorities (no recon acct)
G/L Account Group SAKO
Balance/ P&L Account Balance
Account Category Asset/Liability - AR
Account Purpose Tax receivables, relevant for open item reclassication, relevant for foreign currency revaluation
Account Hierarchy Level ASSETS | CURRENT ASSETS | ASSETS FOR CURRENT TAXES | Assets for current taxes
Used in Conguration or Master
Data
X
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Where Used in the Global
Account Determination or
Master Data
Acct Determ. for Open Item Exch.Rate Differences / Account Determ.for Balance Sheet Transfer
Postings
Account Usage In the documentation group for Asset for current taxes, the following accounts are described:
G/L Account Number (I_SAKNR) G/L Acct Long Text (SKAT)
12541000 Receivables from Tax Authorities (no
recon acct)
12600000 Input Tax (VST)
12605000 Import Sales Tax paid (VST)
12606010 Deferred Input tax / Fixed assets VST
12610000 Input Tax
22000000 Output Tax (MWS)
22090000 Withholding Tax Payable
22100000 Acquisition Tax
Process Related Information Process 1: Accounts Receivables
Test script for J59 Accounts Receivables
Process 2: Accounts Payables
Test script for J60 Accounts Payables
Process 3: Accounting and Financial Close
Test script for J58 Accounting and Financial Close
Create advances return sales/purchase tax
Posting via report (RFUMSV00): (as recommended by SAP)
The report creates the advance return for tax on sales/purchases and, if required, a
batch input session for making an automatic transfer posting for the tax payable.
When the system creates a batch input session for the tax payable transfer posting, a
document is prepared for each company code selected. In this document, one item for
posting to the tax account and one item for posting to the tax payable account is
created for each tax account.
If required, the report starts lling in the form for the advance return for tax on
sales/purchases (function not covered/delta Customizing). It provides the tax balances
for each company code, the tax on sales/purchases code, transaction key, total/debit or
credit indicators, and the selected period in tabular form. The subsequent print report
uses these tables to determine the data required for the printout.
You can set the output lists to suit your requirements. You can use the ABAP List Viewer
function to arrange the lists accordingly.
Prepare the electronic tax return
You create the administration report for the electronic data transfer transmission to the
tax authorities.
You can successfully execute the Create Advance Return on Sales/Purchase Tax app.
The next steps to prepare the electronic tax return are as follows
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Enter the Data
Execute the report
Download the le
Post Tax Payable
The output tax account cannot usually be posted directly. This means that a transfer
posting for the account balance cannot be made directly to the tax payable account.
You can use the Post Tax Payable app for the tax payable.
You can use this app to pay tax amounts by posting the balances of input and output tax
accounts to a tax payable account. The app does not require entry of a tax code,
enabling you to make manual adjustments to tax accounts directly. Postings can be
made in all relevant ledgers for the accounts for which you are responsible.
12606010 Deferred Input tax / Fixed assets VST
This account is used when you create a vendor invoice with vat code related to deferred tax and
asset (J5 as an example). The VAT part of this Asset acquisition goes to account 12606010.
Deferred tax program will transfer taxes from the Interim Tax Account to the Final Tax Account
after the Vendor's Invoice has been paid for. In other words, program RFUMSV50 transfer
amount from deferred tax code to target tax code.
If you think this account is relevant for Foreign Currency Valuation, please congure it via
SSCUI.
Posting Examples 22000000 - Output Tax (MWS)-Domestic
Company A sells computer spare parts to Company B. The sales are taxed at 19% sales tax.
Company A sells a hard drive for 100 EUR with 84,03 EUR and the sales tax is 15.97 EUR. An
invoice for 100 EUR incl. the sales tax of 15.97 EUR is created.
Enter invoice without sales order:
Debit Credit
Customer (Company B): 100 EUR Tax code
**
41000400 – Sales Revenue w/ Cost
Element: 84,03 EUR Tax code A1
22000000 – Output Tax (MWS): 15,97 EUR
The turnover tax as a different liability must be transferred to the nancial office
monthly, quarterly, or only at the end of the year, depending on the requirements of the
tax authorities. In our example, we

Tables:

Programs, Function Modules and Exits:

Platforms:

S4HANA TAX CONFIG CHECK: