Symptom
You need to set up a tax code referring to a tax event for which a part of the input tax, X% is deductible, whereas a second part, Y% is to be posted as non-deductible input tax to an expense account.
Environment
SAP Business ByDesign
Reproducing the Issue
According to the SAP ByDesign help document Configuration: Tax Codes you have created a partial deductibility code and a tax code using the newly created deductibility:
To create a partial deductibility:
- In the Business Configuration work center navigate to either the Implementation Projects view, select your implementation project and open the Activity List.
- Go to the Fine-Tune- phase.
- Select the Tax Settings for Purchasing activity (If your system is already live navigate to the Overview view and select this activity from there).
- In the Available Deductibility Types table press Copy to add a new line.
- Select the respective Country and Tax Type.
- Enter a new Deductibility Code, e.g. DCX and an adequate description, e.g. Partially Deductible: X%.
- In the table underneath specify the validity and the Deductibility Rate in %, e.g. X%.
- Press Save and Close.
To assign the new deductibility to a tax code:
- In the Business Configuration work center navigate to either the Implementation Projects view, select your implementation project and open the Activity List.
- Go to the Fine-Tune- phase.
- Select the Tax on Good and Services activity (If your system is already live navigate to the Overview view and select this activity from there).
- In the new window, under Tax Codes click on the Define Tax Codes link.
- Under Available Tax Codes press Add.
- Select the respective Country.
- Enter a new Tax Code, e.g. DCX,and a Description, e.g. Domestic Acquisition, X% deductible.
- Maintain a Valid From and Valid To Date.
- In the Tax Event column select a tax event for incoming tax scenarios, e.g. Domestic Acquisition (ID 10).
- Press Save and then Close.
You now need to define the G/L Account that shall be used for the non-deductible Input Tax:
- In the Business Configuration work center navigate to either the Implementation Projects view, select your implementation project and open the Activity List.
- Go to the Fine-Tune- phase.
- Select the Charts of Accounts, Financial Reporting Structures, Account Determination activity (If your system is already live navigate to the Overview view and select this activity from there).
- Under Account Determination press on the Costs link.
- Navigate to the General Expenses tab.
- Here search for the Account Determination Group that is to be used for this scenario.
- Enter an expense G/L account in to the Non-Deductible Input Tax column.
Resolution
You can now assign the tax code and cost account determination group to the respective item in your purchasing document:
- Assign the newly created tax code, e.g. DCX.
- In the Account Assignment tab (Cost Distribution tab for a Supplier Invoice item) select an account determination group for which you have defined a G/L account for non-deductible input tax.
Keywords
Split Input VAT, Partially Deductible, Non-Deductible Input Tax, Input Tax , KBA , AP-ACC , Business ByDesign: Financial Accounting , How To