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Commitments values

Former Member
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Hello Experts,

          I am presenting my issue in simple layman terms. I create a purch.order with net value of Rs.100/- and assign it to a wbs element (project systems). when i use creditable tax code in the p.o with say service tax 10%, the system shows commitments value against the wbs element as Rs. 100/- i.e. the net value,  whereas it shows Rs.110/- ,i.e. gross value, as the commitments value when i use non creditable tax code. Are there any specific settings for different tax codes by which system determines the amount ?

Regards,

Manish

Accepted Solutions (1)

Accepted Solutions (1)

ajaycwa1981
Active Contributor
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Hi

These settings are in tax code itself... i.e. deductible tax or non deductible tax

In the case of creditable tax code, accounting entry is

Expense Dr 100 (i.e. 100 is charged to WBS)

Tax dr 10

Vendor Cr 110

In the case of Non Cr tax code, entry is

Expense Debit 110 (Inclusive of Tax)

Vendor Credit 110

Hence, 110 is charged to WBS in this case., Thats the reason you see commitment of 110 in this case

br, Ajay M

Former Member
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Hi Ajay,

               Thanx for the immediate response.To add my query further,from PS point of view, it becomes tougher when i budget the wbs with larger amounts. Changes in taxes can be made during migo/miro which can affect the budgeting.Is there any way by which the system can pick the commitments values as gross value only.I check the commitments values from standard reports,cji5, s_alr_87013558 etc.

which displays the values.

Regards,

Manish.

ajaycwa1981
Active Contributor
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Manish

It goes like this... It all depends on whether the tax is to be borne by the company or Can be set off against Output taxes

If it can be set off against Output tax, tax amount is not included in expense.. Hence, not charged to WBS and there by not a part of commitments

If it is to be borne by the company, it impacts commitments... This behaviour cant be changed..

As far as taxes are concerned, i guess there should not be too many cases of changing the tax amount at the time of MIGO/MIRO

br, Ajay M

Answers (0)