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Tax Code in Accounting Document at GR Level

kathrine_dave
Participant
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Hi Experts,

I need to know how can I display tax code in accounting entries at the time of GR. I have created a PO which has a tax code and a tax rate. The tax rate has to become part of material cost as the tax in not claimable. System shows blank in tax code field in accounting entries at GR level. However, its correctly, adding the tax amount in material cost and posting to inventory GL.

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Prasoon
Active Contributor
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Hi,

   The non-deductible taxes with posting indicator 3 (Distribute to Distribute to relevant expense/revenue items) will directly add the tax amount to material account during GR. There wont be any different line item for tax amount at GR level and It wont show the tax code at GR level in standard.

   You may check the note:  113901 - Taxes for goods movements

   If you need to see the non deductible tax alone, you may go to BSET table with the accounting document and get the amount after posting IR.

Regards,

AKPT

kathrine_dave
Participant
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Hi AKPT,

I understand that in case of non-deductible taxes the tax amount is post to Inventor or Expense GL. My issue is that I just want to see the tax code in the TX Code column in GR. Now its showing empty in case of deductible taxes as well. At invoice it show for both non deductible and deductible items.

Prasoon
Active Contributor
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Hi,

   Deductible tax amount is not considered as a cost item of the procurement and the same is not calculated at GR level. Please check the note: 385127 - SD/MM: Process for tax-exempt transactions changed

Regards,

AKPT

kathrine_dave
Participant
0 Kudos

Hi AKPT,

I think I have to give more details. For non-deductible system is calculating tax rate as a part of material cost and post to inventory GL. There is no separate item for this tax. At the time of MIRO also the entry is Vendor Credit with PO value + Tax amount and GR/IR Debit with PO Value + Tax amount.. but at MIRO level I can see the Tax Code in the Tax Code column. Although the tax is not separately calculated and its non deductible. Why do we dont see the Tax Code at GR level?

Prasoon
Active Contributor
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Hi,

   Your question was pretty clear. The answer is that it is not designed to show the (deductible or non deductible) tax code  in the accounting document of goods movement. The system design is well explained in the note: 385127 - SD/MM: Process for tax-exempt transactions changed. However, the tax codes will be visible in the invoice - accounting documents.

Regards,

AKPT

kathrine_dave
Participant
0 Kudos

thanks AKPT. Now I am clear on it.