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Expenses Type exceeded amount is not deducting TAX

Former Member
0 Kudos

HI Friends,

I have created one Expense Type for 9000 GBP. As per the Table T706B2 The Maximum Value is 8000 GBP. So when the amount exceeded system splits itself to wage types 8044 and 8644.

8044 is No Tax 8000 GBP

8644 if Non exempt amount that is 1000 GBP.

But There is no changes happened in Tax. It supposed to pose tax for 1000GBP.

I have maintained another 3000 for next month. but even that 3000 is showing exempt amount.

So can any one help me how can I maintain tax for those exceeded amount.

Thanks

Rajender

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi Rajender,

In your scenario below you are expecting a VAT on the excess amount which is 1000. However if you have assinged the correct VAT tax code in T706B1 for your expense type then as per the SAP, "the tax is calculated on the amount which is no higher than the maximum amount" that you have defined in T706B2 and as per your example below this amount is 8000GBP. The excess amount (in your case is 1000GBP) will be posted with zero input tax.


I have created one Expense Type for 9000 GBP. As per the Table T706B2 The Maximum Value is 8000 GBP. So when the amount exceeded system splits itself to wage types 8044 and 8644.

8044 is No Tax 8000 GBP

8644 if Non exempt amount that is 1000 GBP.

But There is no changes happened in Tax. It supposed to pose tax for 1000GBP.


IMG documentation

Distribution of receipt amount to different wage types

  • If the maximum value is exceeded, the system splits the receipt amount into two parts:
  • The first part, which is no higher than the maximum value defined, is allocated to the first wage type. This part contains the input tax code of the receipt that is entered during the dialog.
  • The second part of the receipt amount represents the excess value beyond the maximum value. The system allocates this value to the second wage type and posts it with 0% input tax

Hope this helps.

Ankur

Former Member
0 Kudos

Hi Lukas and Ankur,

Thanks for your reply's. I found that in table T706B2 which is put for X for input tax for Exceeded amount.

I found myself for that excess amount wagetype 8644 is not ticked for tax (/121). Just would like to know if I check that which areas it is going to be affected. Do I need to do any other more work if I check that for taxable wagetype.

By the way The Tax code mentioned for Removal expenses is V0. Please suggest me on this.

Thanks

Raj

Former Member
0 Kudos

Hi Rajender,

It looks like that you are trying to reimburse the employee expenses via payroll. If this is the case then the wage type you have maintained in 2nd wage type (which i believe is 8644) in table T706B4 should have a cumulation class 21 'Taxable pay' as ticked in v_512w_d so check your settings for the wage type in this table.

in addition to the above, in table T706B1 check that you have maintained for your expense type you have maintained 'Taxable by Employee, Payment to Employee' in field Amounts are..

Hope this helps.

Former Member
0 Kudos

Can Anyone please suggest me in this. In my config Tax code is V0
maintained in that expense type. But the both wagetypes are included for
same expense type. I am attaching V_T706B1 B2 and B4. The excess amount
wagetype has to be included to Tax for P11d purpose.

And if we change 8644 wage type to taxable pay in /121 what other places will be affected.

Thanks

Raj

Former Member
0 Kudos

Hi Ankur,

Do I need to change any tax code as it is there as V0.

Please help me

Former Member
0 Kudos

Hi Rajender,

Tax code V0 is for VAT calculation i.e. input tax and /121 is to store the employment tax which is very different to input tax.

Please can you confirm if you are planning to calculate the VAT on the excess amount or employment tax? and what reimbursement method are you using to process claims?

Former Member
0 Kudos

HI Ankur,

I want to calculate VAT on Excess amount. The reimbursement is paid to employee within limit is taxfree and excess amount should be taxable. And here any amount which
exceeds is taxable and should be reported on P11D.

Answers (1)

Answers (1)

Lukas_Weigelt
Active Contributor
0 Kudos

Hi Rajender,

first of all welcome to the SCN forums!

I don't have the functional knowledge to answer your question in-depth, but in general, you have to make sure the you are using VAT refunds in your system at all. This can be configured in the global settings for FI-TV:

Entry of VAT Refund Details - Travel Expenses - SAP Library

Furthermore, I think (not sure) the VAT that is used for the second split of the exceeding amount of the expense type is the input Tax code of the receipt.

I hope this helps you a bit to search into the right direction (or until somebody with good functional knowledge decides to answer in the thread )

Cheers, Lukas

Former Member
0 Kudos

Hi Lukas and Ankur,

Thanks for your reply's. I found that in table T706B2 which is put for X for input tax for Exceeded amount.

I found myself for that excess amount wagetype 8644 is not ticked for tax (/121). Just would like to know if I check that which areas it is going to be affected. Do I need to do any other more work if I check that for taxable wagetype.

By the way The Tax code mentioned for Removal expenses is V0. Please suggest me on this.

Thanks

Raj