2917069 - No Tax Postings in the Expense Reports - Mexico

You have selected the tax code Domestic Purchase - Goods for which the tax rate type: 1- standard in the configuration and the percentage is more than zero.

You have expected that the tax code % of tax amount as a seperate line in the journal entry posting. But the journal entry of the expense report does not show any tax line either.

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

Here the Tax exemption reason code is maintained for Country - MX, , Tax Type - VAT & Tax Exemption Reason Code - 1 – Exempted Business partner.

Due to this setting when you create a Expense Report for any Tax code with has "VAT" tax type, the tax amount will be 0 and you will not be able to manually change the tax amount.

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

1. Business Partner

2. Tax Type

3. Tax event.

Note: Region based Tax exemption can’t be supported in the system.

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

1. If you need tax exemption for VAT as maintained in the Business partner Work Center, then in expense report when you select tax code for VAT the tax amount will be zero and so manually changing the tax amount is not possible.

2. If you don’t need the Tax exemption, then you need delete the entry in the Business partner, then in the expense report when you use VAT, you will be able to manually change the tax amount.

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, will result in calculation of tax and tax amounts 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