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MayaSchnabel
Advisor
Advisor
0 Kudos
If you are working with an Israeli database and your company is defined as a Tax Liable company,  you may want to purchase items for which you are allowed to deduct lower tax rate - for example fuel, for which you can deduct 2/3 of the initial tax amount.

Currently, to reflect this scenario, you need to create a manual journal entry based on posting templates.

The good news is that after upgrading to SAP Business One 10.0 FP 2305, you can create A/P documents for these kinds of expenses and deduct different tax rate on your document at row level!

This new option is not activated by default; To enable the feature, please follow the steps below:

  1. Select the new checkbox Enable Applying Non-deductible Purchase Tax on Expense Account on the Accounting Data tab under Administration → System Initialization → Company Details.
    Note!

    • This checkbox is only available for tax liable companies.

    • This setting is irreversible.



  2. A new form Deducted Purchase Tax Codes – Setup is available under Administration → Setup → Financials → Tax → Deducted Purchase Tax Codes.
    In this form, four default deducted tax codes are predefined as below:




























    Code Name Deducted Purchase Tax %
    E0 מע"מ קניות פטורות 0
    E1 מע"מ קניות 17% 100
    E2 מע"מ קניות 2/3 66.67
    E3 מע"מ קניות 1/4 25

    If required, you can configure additional deducted purchase tax codes.

  3. You can define the default G/L accounts for Liable Deducted Purchase Tax and Exempt Deducted Purchase Tax for purchasing documents, in the G/L Account Determination window at Administration → Setup → Financials → G/L Account Determination → G/L Account Determination → Purchasing tab → Tax tab.


Now you are ready to work

  1. New columns are available by default for A/P documents’ rows:

    • Deducted Tax Code

    • Deducted Tax %

    • Deducted Tax Amount (LC, FC, SC)

    • Non-Deductible Tax Amount (LC, FC, SC)



  2. When you create an A/P document you can choose different tax code for each row, based on the purchase tax codes configured in the new Deducted Purchase Tax Codes - Setup window. Then the deducted tax amount is calculated automatically, and the non-deductible tax amount is charged on the expense.


Note!




  • This new function is not available yet in the B1 web client.

  • For creating a manual journal entry keep using the posting templates since the purchase tax codes are not available in the Journal Entry form.

  • The process of creating the Tax Report and sending it to the authorities is not changed.


More information can be found in SAP Note: 3235805