2560467 - Old Tax Return Items Are Picked up in New Tax Return Run in Country UK

You make a Tax Return Run for country UK for the current period but some old items from previous years are picked up as well. You expect that only the current documents are being picked up. This scenario is valid mostly for UK, but can be applied to other countries as well.

SAP Business ByDesign

1. Go to the Tax Management Work Center.
2. Select the Tax Returns - VAT Returns View.
3. Show Tax Returns In Preparation, find XXX (where XXX represents the Tax Return in Preparation).
4. Press View.
5. Switch to the tab Tax Return.
6. Highlight the Tax Box Code YYY (where YYY represents the Tax Box Code ID) and press Details.
7. Filter after the Source Document ZZZ.
8. Click the Customer Invoice ABC.

You can see that the Customer Invoice has a Posting Date as e.g. of 2 years in the past and the status is Release canceled. You expect that this Customer Invoice should not be included in the VAT Return since it is outdated.
You can see as well a Cancellation Customer Invoice DEF in status Released with the same Posting Date as of 2 years ago.

1. Go to the Tax Management Work Center.
2. Go to the Periodic Tasks - VAT Return Runs View.
3. Show Active Tax Return Runs, find YYY.
4. Select the Application Log ID ZZZ.
5. Switch to tab Results.

You can see a warning message: Error is above the reporting threshold; create a correction return.

The Tax Returns you created which did not pick up those old documents had all warning messages like that the tax amount is above the reporting threshold. So you just change the reporting threshold. A second solution is to delete the recent Tax return ID. Then you create a new VAT return run for all open documents in previous periods. A third solution is that directly after the warning message is raised you just create a Correction Return.

Solution A:

1. Go to the Business Configuration Work Center.
2. Go to the Overview View.
3. Search for in asterisks <Tax Return for Goods and Services - UK>.
4. Click Tax Return for Goods and Services - UK.
5. Adjust the Threshold Value for VAT Return.

Rerun the VAT Return Run. Note: This solution A cannot be applied in the country UK since it is legally not allowed to change the Reporting Threshold in the country UK. For the country UK please refer to Solution B below.

Solution B:

1. Delete the recently created VAT Return ID XXX.
2. Create a new VAT Return Run for all open documents from 2 years ago and bring the return to a final released status so documents cannot be picked up further in future runs.
3. Rerun the VAT Return run for the recent actual period.

You notice that no longer old documents are being picked up.

Solution C:

1. Go to the Tax Management Work Center.
2. Go to the Periodic Tasks - VAT Return Runs View.
3. Press New - Tax Return Run.
4. Enter the necessary Details and tick the checkbox Correction Run.
5. Press Set to Active.
6. Press Save and Close.

The Correction Run clears the Warning Message and old documents will no longer picked up in future returns.

Error is above the reporting threshold create a correction return; old tax items in new tax return run , KBA , SRD-FIN-TAX , Tax Management , How To