SAP Knowledge Base Article - Public

2592216 - Tax Refund Amount is Send to G/L Account Nonconvertible Bonds Instead of G/L Account Sales Tax Advance Payment


Journal Entry related to Tax refund is showing the posting to G/L Account Nonconvertible Bonds instead of G/L Account Sales Tax Advance Payment.


SAP Business By Design

Reproducing the Issue

You are creating an Electronic Bank statement and the tax refund information is present in the file which you got from the bank. The Journal Entry related to this Tax refund is getting posted to the G/L Account Nonconvertible Bonds instead of Sales Tax Advance Payment.


If you are addressing a tax refund via bank statement, ideally the bank statement should be created manually. Here you will be able to allocate to the correct tax authority. A Tax payment will get created and later you can assign the Tax returns in the system and release the same. Follow the resolution steps as a work around to correct this journal entry posting.


  1. Go to Payment Management work center.
  2. Go to Payment Allocation view.
  3. Select the payment allocation which is happened via the bank statement and perform the action Reverse.
  4. You will get a new Payment allocation which will be in status In Preparation.
  5. Edit the allocation and enter the Tax Authority as the Business Partner in the field Customer/Supplier ID under the tab Customer/Supplier.
  6. Enter the transaction Amount.
  7. You should not assign any amount on the tab Other Allocations which by default will be blank.
  8. Release the payment allocation which will trigger a Tax payment.
  9. Go to Tax Management work center.
  10. Go to Tax Payments view.
  11. View the tax payment and you will see the Review Task on the header.
  12. Select the task and on the new screen you will be able to enter the Tax returns.
  13. Perform the action Release to release the tax Payment.
  14. The journal Entry which will get posted based on this will be posted to the G/L Account Sales Tax Advance Payment instead to Nonconvertible Bonds.


KBA , AP-PAY , Payment Processing , How To


SAP Business ByDesign 1711