3431384 - Non-deductible tax is being considered as Deductible tax

Tax Code ABC (ABC means Tax Code ID) for Supplier Invoice is wrongly being considered in VAT Return DEF (DEF means VAT Return ID).

SAP Business ByDesign

1. Go to Supplier Invoicing work center.
2. Go to Invoices and Credit Memos view.
3. In the dropdown, select all Documents.
4. Search for Supplier Invoice ID XYZ (XYZ means Supplier Invoice ID).
5. Open Supplier Invoice ID XYZ -> Go to Items Tab -> Taxes Sub-tab, you'll see Tax Code ABC is assigned to this Supplier Invoice (Domestic Purchase of Goods and Services, Standard Rate, Non-Deductible).
6. Go to Tax Management Work Center.
7. Go to Tax Return View -> VAT Return sub-view.
8. In the dropdown, select all Tax Returns -> Search for VAT Return DEF and open it.
9. Select View All -> Go to Tax Return Tab -> Tax Box Description.
10. Select Tax Box Description "Input Tax" and click on Details, you'll see that Supplier Invoice ID XYZ is showing in VAT Return, even it's non-deductible.

Typically, system will show all non-deductible transactions as well in VAT Return, but it doesn't come under Tax Liability since Tax Code is non-deductible once the deductible amount will be 0 (zero) for any currency transaction.

This is an expected system behavior.

Deductible, Supplier Invoice, Tax Code, VAT Return , KBA , SRD-FIN-TAX , Tax Management , AP-ACC , Business ByDesign: Financial Accounting , How To