Reverse Tax charges

[fanisa_1991]

Hi All,

We have a requirement where in user is expecting below entry, when we post a vendor invoice for reverse Tax.

Vendor Cr £100

Expenses Dr £100

Input Tax "VD" £20

Output tax "AD" £20

I did configuration in FTXP, however the entry I get is as below.

Vendor Cr £100

Expenses Dr £100

Input Tax "AD" £20

Output tax "AD" £20

Can somebody help on this, how do I achieve it.

Regards,

Fanisa.

[fanisa_1991]

the entry i get is as attached. I am unable to get input and output tax code in two separate line items.

[sanilbhandari]

Hi fanisa_1991

What is the business rationale for this kind of tax postings? You cannot have a vendor line item with two types of indirect tax rates (tax codes in SAP Terminology). No where in the world these kind of tax postings are legal, as far as I know.

Yes, you may have a tax code related to reverse charge (eg, inter community supply of goods from one member state of EU to another), but still the tax code is still the same.

You can have a vendor invoice with multiple line items and different tax rates (tax code), but you cannot have a vendor line item with more than one tax code (Tax rates).

I do not think, these kind of postings will be supported in SAP. However, if you still have such a requirement from your business user, than please ask for a legal supporting document for the country in which such a requirement exists and raise a support ticket to SAP Product Support with the required supporting document that the functionality is not supported dispite being a legal requirement.

Hope this helps

Thanks & Regards

Sanil Bhandari