2917069 - No Tax Postings in the Expense Reports - Mexico

The tax code Domestic Purchase - Goods is selected, for which the tax rate type: 1 - Standard is maintained in the configuration and the percentage is more than zero.

The tax amount is expected as a separate line in the journal entry posting. However, the journal entry of the expense report does not show any tax line.

SAP Business Bydesign.

1. Go to the Travel and Expenses work center.
2. Expense reports and find the expense report in question.
3. Edit and View All
4. Navigate to Expenses tab and select the expense line and you will see that tax code used is Domestic Purchase - Goods.
5. Navigate to Document Flow and open the Journal Entry.

Sample:

Travel Expenses Account Debit 100 MXN

Accounts Payable Account Credit 100 MXN

There is no tax amount line, also when you select the Debit line, you can see that

VAT/Sales Tax

Rate Type 2 - Zero

Event Type 10 - Domestic Purchase - Goods

Tax Type 1 - Value Added Tax

Country MX - Mexico

Due Category2 - Input Tax

1. Go to the Business Partner Data work center.
2. Select the Business Partner in question and Edit.
3. Click on Business Partner Roles, Account and click on it.
4. Open it and go to Tab - Financial Data and under that Tax Data

The Tax Exemption Reason Code is maintained for Country - MX, Tax Type - VAT, and Tax Exemption Reason Code - 1 – Exempted Business Partner.

Due to this setting, when an Expense Report is created for any tax code that has VAT as the tax type, the tax amount will be 0 and cannot be manually changed.

Tax Exemption is determined only based on the below 3 criteria:

1. Business Partner

2. Tax Type

3. Tax event.

Note: Region-based Tax Exemption cannot be supported in the system.

So, the option to choose based on your requirement is.

1.If tax exemption for VAT is required as maintained in the Business Partner work center, then in the Expense Report, when a tax code for VAT is selected, the tax amount will be zero and manually changing the tax amount is not possible.

2.If tax exemption is not required, the Tax Exemption entry needs to be deleted from the Business Partner. Then, in the Expense Report, when VAT is used, the tax amount can be manually changed.

1. Go to the Business Partner Data work center.
2. Select the Business Partner in question and Edit.
3. Click on Business Partner Roles > Account and click on it.
4. Open it and go to Tab - Financial Data and under that Tax Data.
5. Here the Tax exemption reason code is maintained for Country - MX, , Tax Type - VAT & Tax Exemption Reason Code - 1 – Exempted Business partner.
6. Remove and Save.

For new Expense Report postings with the VAT tax code, the tax will be calculated and the tax amount will be posted in the journal entry.

Mexico VAT, tax amount is zero in the expense reports, Rate Type 2 - Zero instead of tax rate type: 1 - Standard. , KBA , AP-ACC , Business ByDesign: Financial Accounting , Problem