3728044 - Pro-rata for Czech Republic in S/4HANA Cloud Public Edition

Pro-rata for Czech Republic in S/4HANA Cloud Public Edition

SAP S/4HANA Cloud Public Edition

Consulting

Pro rata VAT calculation is currently not enabled for Czech Republic in SAP S/4HANA Cloud Public Edition.

The VAT processing described on the SAP Help Portal page Tax Invoice  relates to the “poměrový koeficient” in Czech, which is based on § 75 of the Act on VAT.

Since SAP S/4HANA Public Cloud currently does not support automatic pro‑rata coefficient calculation for the Czech Republic, the only available solution is to use the two relevant tax codes:

- P1 / P2 - deductible part

- PA / PB - non‑deductible part

and to manually split the base amount according to the applicable pro‑rata percentage.

For example:

70% deductible → tax code P1

30% non‑deductible → tax code PA

The annual adjustment of the pro‑rata coefficient must also be performed manually, as SAP S/4HANA Public Cloud does not provide an automated mechanism for this process in the Czech localization.

This means the final annual deductible percentage has to be calculated outside the system and it has to be compared with the percentage used, and the adjustment has to be posted manually through a journal entry.

At the moment, this is the only way to handle pro rata in CZ.

The Coefficient and Settlement Coefficient refer to the “krátící koeficient” in Czech, based on § 76 of the Act on VAT. 

• Tax Invoice - Pro-rata VAT Calculation.
• Countries/Regions with Pro Rata VAT Calculation.

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