1687003 - Manual Tax Entry, Manual Tax Entry reversal and Deviating Tax Due Date

When you have reversed a manual tax entry, the reversal tax entry is not counted in the same tax return than the reversed manual tax entry.

SAP Business ByDesign

1. Go to the Tax Management work centre.
2. Go to the Manual Tax Entries view, Sales and Use Tax Entries / VAT Entries sub-view.
3. Press the New button and select the option Tax Entry.
4. Enter the mandatory data as well as the line items for the Posting Date and Tax Due Date you enter for example 01/01/2012 as posting date and 31/12/2011 as Tax Due Date.
5. Press the Post button.

Once the manual tax entry is posted you have to reverse it

1. Go to the Tax Management work centre.
2. Go to the Manual Tax Entries view, Sales and Use Tax Entries / VAT Entries sub-view.
3. Select the Manual Tax Entry you want to reverse and Press the reverse button.
4. In the popup windows Input Parameters for Reverse enter the posting date of the reversal manual tax entry. (the posting date of the reversal cannot be before the posting date of the reversed manual tax entry). You enter for example the 01/01/2012 as posting date of the reversal of the manual tax entry
5. press the OK button.

You can perform the tax return run for example for the period of December 2011.

The tax return for the period of December 2011 will integrate the initial manual tax entry created but not the reversal tax entry.

The relevant date for a tax item to be counted in the tax return is the Tax Due Date. The Tax Due Date of the initial reversed manual tax entry is entered literally when it is created in our example the 31/12/2011. However this is different for the reversal of the manual tax entry. When you reverse a manual tax entry you only can specify the posting date of the reversal which cannot be before the posting of the reversed tax entry.

The tax due date of the reversal is derived from the posting date of the reversal and is equal to it. In our example as the posting of the reversal tax entry is the 01/01/2012 the tax due date of the reversal is also 01/01/2012 therefore not matching the tax due date of the reversed tax entry set in our example to the 31/12/2011.

in case the tax due date of a manual tax entry is in a precedent period that its posting date it is not possible to have the tax due date on the reversal in the same period.

As a consequence the reversal manual entry is not integrated in the same tax return than the reversed tax entry. In our example the reversed tax entry is counted in the tax return for December 2011 and the reversal tax entry is in the tax return for January 2012.

You have 3 possibilities to correct the situation:

Let the situation as it is as it will compensate itself from one period to the other (in our example for December 2011 and January 2012).

Create a new manual tax entry with the same dates as the manual tax entry which has been reversed but with the debit and credit amounts switched, and reverse it with the same reversal posting date than the first tax entry. This new tax entry would offset the effect of initial one in both period (in our example December 2011 and January 2012).

Alternatively SAP can change the tax due date of the reversal in the system for you. in this case create a support request giving a written authorization to SAP to do the changes.

Tax, Tax Due Date, Reversal, Tax Return, , KBA , SRD-FIN-TAX , Tax Management , How To