2134790 - Total Difference Amount In Tax Return

After generating the tax return, the Total Difference Amount in the overview displays a value. This leads to the following questions:

• Why is this difference amount shown?
• How is it calculated?
• Could this indicate a potential issue in the system?

SAP Business ByDesign

1. Go to Tax Management work center
2. Select VAT Return view
3. Search for Tax Return ID
4. Click View

In the Overview tab you find the field Total Difference Amount. This field is showing the Value. 

While creating the invoice /documents, a user has manually changed the tax amounts or tax code and posted documents with tax amounts different from tax amounts calculated by the system. Hence there will be a difference between Calculated Tax and Applicable Tax (Posted tax).

Total Difference = Internal tax amount (Calculated Tax Amount) - Applicable tax amount (Posted Tax amount)

1. Open the Tax Management work center.
2. Go to the Reports view.
3. Search for the report titled All VAT/Sales Tax Items.
4. Enter selection parameters.

a) Company:  Use the company associated with the VAT Return or VAT Return Run that generated the return. 

b) Tax due date: As per the Tax return or if there exist return with overlapping time frame then modify the selection criteria accordingly. 

1. Click Go.
2. Move the Tax Amount Overridden field from Not Currently Shown to Rows
3. In Column Field Go to Key Figures and here to Key Figure Settings.
4. Add the key figures Difference and Internal Tax Amount from Available to Selected.
5. Click Ok.
6. Go to Edit Filter.
7. Set the following filters:
   1. Tax amount overridden: X
   2. Due Category: 2 (Receivables)
8. Click Go.

Check the Difference column in the result row. This should match with the Total Difference Amount in the Tax Return screen.
This return will also provide the details on the Source Document IDs and its type along with the System calculated tax (Column: Internal Tax Amount) and Posted tax (Column: Applicable Tax Amount).

Similar approaches apply to investigate differences in reported tax amounts also for localizations where the explicit field Total Difference Amount is not featured.

If discrepancies remain unexplained after reviewing the report, log a case with SAP.

The Total Difference Amount is an indicator of variance between system-calculated and posted tax.
However, the Total Tax Amount reflects the correct posted values and can be used to proceed with submitting the tax return to the authorities.

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