How to post tax relief in SAP Business ByDesign?

[piotr_krol]

Hi All,

I am trying to post a tax relief consisting in reducing the tax base and the amount of output in specific month.

My business scenario is as follows:

1. Customer Invoice issued in January. Output VAT posted to "Output VAT - domestic sales" GL account with specific Tax Code - 310 Domestic Sales

2. The customer did not pay the invoice

3. Output VAT has been paid to the tax office

4. After 90 days from the original payment date, the client still does not pay and I have the right to reduce the Output VAT for the month of April. How to book such an operation?

In this operation I want to post the amount from the "Output VAT - domestic sales" GL account to a specific tax account for non paid transactions.

1. I want to link my " VATrelief" posting to source Customer Invoice ( source document ID )

2. I do not want to write-off customer receivables

I wonder whether to use the Manual Tax Entry or Journal Entry Voucher. Should I create a new Tax Code and use it on Manual Tax Entry? Is there any other way?

Many thanks in advance

Regards

Piotr

[Ephraim_E]

Hello Piotr,

Instead of making use of manual journal entries;

Try posting with the work center "Tax Management"> Manual Tax Entries. Input all necessary details and click "Post"

• It is not advisable to make any entries to VAT accounts directly in the general ledger. These entries do not create entries in the tax register and are not entered in the tax subledger.