Tax Determination from Purchase Order to Logistics Invoice Verification.

[sagnikch]

          Tax Determination in Purchase Orders to Invoice Verification

Case 1- Purchase Order without any Taxes.

Step 1: Refer to SAP standard Condition Table 4AV, M/05.

Step 2: SAP has provided a default access sequence MWST to access the above table.

Step 3: Create new Tax condition type  ZWVS copying from MWVS. (Tcode OBQ1) and assign the access sequence MWST.

Step 4: Assign new condition type ZWVS  to the existing tax procedure TAXINN.

Tcode- OBYZ

Insert the newly created condition type ZWVS into the tax pricing procedure with account Key VST.

Step 5: Create Tax codes in FTXP and assign 0 in ZWVS.

Once tax code is created in FTXP system will automatically make an entry in the tax condition record, FV11 in the Tax Classification.

Step 6: Assign Company Code to Tax codes for Non Taxable Transactions. 

Step 7: Maintain the Tax code V0 and the corresponding input tax GL created in OB40.

Step 8: PO creation with V0 tax code.

Step 9: MIRO posted with update in Purchase Order history-  

Accounting document in MIRO. 

Case 2-

Deductible Tax: 

Incase User manually enters the Tax code in Purchase Order with 18% Tax value.

Step 1: Create a new tax code V1 for 18% Tax and assign 18% on Input Taxes Tax Type (ZWVS). The tax amount will be booked on the Tax GL account and credit would be taken.

Step 2: Tax code to be maintained in OB40.

Step 3: Create PO with V1 with 18% Tax code.

In PO Pricing NAVS does not get updated in this case.

Step 4: Perform MIGO and the corresponding MIGO Entries are –

Accounting Entries in MIGO –

• Inventory Account BSX + DR.
• GR IR Clearing WRX -CR.

Step 5:  Perform MIRO –

Accounting Entries during MIRO –

• GR IR Clearing WRX +DR
• Input Tax VST +DR
• Vendor Account -CR.

Case 3- Nondeductible Tax value.

Incase User manually enters the Tax code in Purchase Order with 18%.

Tax amount will add up to the inventory cost  during GRN and no credit on Tax would be taken.

Step 1: Create a new condition type ZMWV copying from condition type MWVY and assign access sequence MWST.

Step 2: Assign the condition type to the TAXINN pricing procedure and the accrual key should be NVV.

Step 3: Create Tax Code ND using Tcode FTXP

Tax classification Condition record automatically created in FV11.

Note** No entry in OB40 is required.

Step 4: PO Creation with ND Tax Code.

PO Pricing NAVS automatically gets updated with the Tax amount.

Moreover, you have to take into account that the non-deductible tax amount is calculated with function module 'CALCULATE_TAX_ITEM' program-internally.

Step 5: During GRN the tax amount will get inventorized to the Inventory GL. 

Inventory BSX DR+

GR/IR Clearing WRX CR –

Step 6: Perform MIRO-

Accounting Entries during MIRO –

• GR/IR Clearing DR +
• Vendor A/C CR -

Regards,

Sagnik.