3146341 - Invoice Documents With Payment Deferred Indicator are Not Shown in Tax Reports

You are executing the All VAT/Sales Tax Items report and noticed that the invoices with tax payment deferral are not being shown, only the corresponding payment.

SAP Business ByDesign.

1. Go to Tax Management work center.
2. Go to Lists view.
3. Open and execute report All VAT/Sales Tax Items with proper selection parameters.

You see that all invoices with payment deferred are not being included, only the corresponding payment. Other invoices without payment deferred are being shown as expected.

This is the expected system behavior when the invoice has a tax payment deferred.  If you apply a tax deferral scheme, you cannot deduct this tax credit from your tax liabilities until you pay the invoice. Once you post the invoice, the system also posts the deferred amount to a special G/L Account for Deferred input tax. Only when the invoice payment is posted that the systems transfers the deferred tax amount to the regular input tax G/L Account.

For invoices with Tax Payment Deferred, it's the payment document that is reported in the VAT Return. Hence, the reports shows the Payment instead of the Supplier Invoice for such cases.

Help Document: Tax Deferral Process for Supplier Invoicing

2467050 - All VAT/Sales Tax Items Report Does not Show All Customer Invoices

Supplier Invoice. Customer invoice. Tax. Tax Deferral. Deferred Tax Payment. Tax Payment Deferred. , KBA , SRD-FIN-TAX , Tax Management , How To