Transfer of Balance of Deferred Tax Accounts When There Is More Than One Tax Line Item PDF

Transfer of Balance of Deferred
Tax Accounts when There Is More

Than One Tax Line Item.
Applies to:
Any business organization having Deferred Tax Implemented. This is applicable from ECC 6.0. For more
information, visit the Enterprise Resource Planning homepage.
Summary
This article displays the process of transferring multiple tax line items by using program RFUMSV50 instead
of RFUMSV25.
Author:
Suresh Kumar Reddy B.S
Company: Intelligroup Asia Pvt. Ltd.

Created on: 1st March 2010
Author Bio
Suresh Kumar Reddy B.S has done M.B.A with specialization in Finance and has more than 5 years
experience with SAP. Presently working with Intelligroup and has been part of FICO competency since
February 2005.
SAP COMMUNITY NETWORK

2010 SAP AG
SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com | UAC - uac.sap.com

1
Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.
Table of Contents
Introduction ................................................................................................................................................... 3
Objective....................................................................................................................................................... 3
Business Requirement .................................................................................................................................. 3
Solution......................................................................................................................................................... 4
1.
Procedure......................................................................................................................................... 4
1.1 Check Routine Number ........................................................................................................................ 4

1.2 Check Function Modules...................................................................................................................... 4
1.3 Active Country Version India for Specific Fiscal Years .......................................................................... 4
1.4 Define Procedures ............................................................................................................................... 5
1.5 Define Tax Codes for Sales and Purchases ......................................................................................... 7
Note: Create another Tax Code SA as copy of tax code DA without the option Target tax code. ................. 9
1.6 Define Deferred Tax Rules ................................................................................................................... 9
1.7 Assign Deferred Tax Rules to Company Codes.................................................................................. 10
1.8 Enter Vendor Invoice ......................................................................................................................... 11
1.9 Run Payment Program (Post Outgoing Payments) ............................................................................. 12
1.10 Deferred Tax Transfer ...................................................................................................................... 13
1.11 Batch Input: Session Overview......................................................................................................... 18
1.12 Display/Change Line Items (Deferred G/L Accounts) ........................................................................ 19
1.13 Conclusion....................................................................................................................................... 24
Related Content .......................................................................................................................................... 25
Copyright .................................................................................................................................................... 26

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Introduction
As a solution provider you may have requirement to run program RFUMSV50 with multiple tax line items in
regard to Service Tax, Education Cess and Higher Education Cess.
Objective
The objective of this article is to explain step by step process for transfer of multiple tax line items by using
program RFUMSV50 instead of RFUMSV25
Business Requirement
Service Tax credit cannot be utilized unless the vendor invoice is paid. This is the reason till the payment is
done, the service tax amount will be accumulated in deferred tax account and once the invoice is paid, the
balance in deferred tax account need to be transferred to respective Service Tax, Educational Cess and
Higher Educational Cess accounts. There can be different business scenarios for full and partial payment .To
facilitates the transfer of such deferred balance to respective accounts; SAP has come up with a new
standard program RFUMSV50 instead of RFUMSV25. To overcome the limitation of this program i.e. not
able to take care of more than one tax line item, below the solution is provided with scenario Full payment is
made for the vendor invoice.

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Solution
1.
Procedure
1.1 Check Routine Number
Via Transaction Code
VOFM
From menu, Select Requirements -> Pricing
1.2 Check Function Modules
FIBF/BF31
1.3 Active Country Version India for Specific Fiscal Years
Via Menus
SPRO Financial Accounting Financial Accounting Global Settings Tax on

Sales/Purchases Basic Settings India Active Country Version India for
Specific Fiscal Years
-NIL-

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1.4 Define Procedures

Via Menus

Sales/Purchases Basic Settings Check Calculation Procedure Define
Procedures
-NIL-
Field Name
R/O
User Action and Values
Comments
Procedure
TAXIN
Specifies the conditions that are allowed for a

document and defines the sequence in which they
are used.
Descript
INDIA - VAT & Service Tax
Description of the procedure
Select

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and double click on

5
Field Name
R/O
Comments
Step
113
Number that determines the sequence of the

conditions within a procedure
Counter
Access number of the conditions within a step in

the pricing procedure
CTyp
IDST
Every calculation procedure groups several tax

types together into a condition types (for example,
Base Amount, output tax or input tax) in the
calculation procedure, and determines calculation
rules for it.
Description
Input Defrd Service
Description of the condition type
Fro
100
If you specify a reference step at the same time,

the condition values of the steps specified are
calculated. Percentage rate are calculated on the
basis of the Step. In this case, step 110 is
calculated on step 100.
AccKey
IDS
The account key enables the system to post

amounts to certain types of account. Key identifies
the type of G/L account.

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1.5 Define Tax Codes for Sales and Purchases
Via Menus

Sales/Purchases Calculation Define Tax Codes for Sales and Purchases
FTXP

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Field Name
R/O
Comments
Description
Services like training,

professional fee - Service
Description of the taxable services
Tax Type
Indicator for differentiating output tax and input tax.
SA
The target tax code is filled for deferred tax codes.

However, it must not be a deferred tax code itself.
At the end of the period the tax amounts will be
transferred from deferred tax code to target tax
code.
Target tax
code
Select

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Field Name
Tax Percent.
Rate
Tax Percent.
Rate
Tax Percent.
Rate
R/O
10.000
0.200
0.100
Comments
The tax rate gives the percentage rate for the
corresponding Service Tax
corresponding Educational Cess
corresponding Secondary Educational Cess
Note: Create another Tax Code SA as copy of tax code DA without the option Target tax code.
1.6 Define Deferred Tax Rules
Via Menus
SPRO Financial Accounting General Ledger Accounting Business

Transactions Closing Report Sales/Purchases Tax Returns Deferred
Taxes Define Deferred Tax Rules.
-Nil-

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Field Name
R/O
Comments
Rule
0001
Enter a four-character code of your choice.
Document
Per Tax Code, without clearing
The system generates a separate tax transfer

document for all deferred tax items with the same
tax code.
1.7 Assign Deferred Tax Rules to Company Codes
Via Menus
SPRO Financial Accounting General Ledger Accounting Business

Transactions Closing Report Sales/Purchases Tax Returns Deferred
Taxes Assign Deferred Tax Rules to Company Codes
-Nil-

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Field Name
R/O
Comments
CoCd
3302
Company Code is a legal entity in financial

accounting.
Company
Name
Company XXXX Private Ltd
Name of the company Code
Rule
0001
Identifies the deferred tax rule and is assigned to

company code.
1.8 Enter Vendor Invoice

Via Menus
SAP Easy Access SAP Menu Accounting Financial Accounting Accounts

Payable Document Entry FB60 - Invoice
FB60

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1.9 Run Payment Program (Post Outgoing Payments)

Via Menus
SAP Easy Access SAP Menu Processes Purchase Requisition through to

Payment Payments Automatic Payments F110 Run Payment Program
F110

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1.10 Deferred Tax Transfer

Via Menus
SAP Easy Access SAP Menu Accounting Financial Accounting General

Ledger Reporting Tax Reports General Deferred Tax
S_AC0_52000644 Deferred Tax Transfer (New)
S_AC0_52000644

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Field Name
Company Code
Document
Number
Fiscal Year
Time Frame
Tax Code
Vendor
Type of Run
R/O
Comments
The company code is an organizational unit within
financial accounting.
3302
The document number is unique per company
code and fiscal year. When entering an accounting
document, you can specify the number manually
or it can be determined by the system from a predefined area (number range).
1100000337
Input the year to be extracted from deferred tax

accounts.
2009
11.09.2009
11.09.2009
to
The document number is unique per company

code and fiscal year. When entering an accounting
document, you can specify the number manually
or it can be determined by the system from a predefined area (number range).
The tax code represents a tax category which

must be taken into consideration when making a
tax return to the tax authorities.
DA
Alphanumeric key uniquely identifying the

document.
A8871
Do not Update
This has the effect that tax items are selected

irrespective of whether they contain the date or
time of a previous run. The tax items selected are
not marked with the date and time of current run
either.
The date of the currency on which transfer takes

Currency
Translation

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Transfer Posting Date
place from deferred tax to service tax.

14
Select
button

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Select
button
Field Name
Update
Documents:
Update Run
Post Via Batch

Input Session
Batch Inp. Sess.
Name
R/O
Select Radio Button
Select Check Box
RFUMSV50_1

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Comments
This has the effect that only those tax items

for updating the tax return are selected in
which no date or time of an earlier run is
noted.
The date and time of the current run are then
marked in the tax items selected.
Posts the deferred taxes from the interim tax

account to the normal tax account and clears the
amount from the interim tax accounts. The tax
transfer documents are created in batch input
session.
The program database is updated only if the tax
transfer document posting is successful.

16
Select
button

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1.11 Batch Input: Session Overview

Via Menus
SAP Easy Access SAP Menu Processes Accounting Periodic Processes

SM35 - Batch Input Process
SM35
Select Session
And select

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Select
option and select
Select
push button
button
1.12 Display/Change Line Items (Deferred G/L Accounts)

Via Menus
SAP Easy Access SAP Menu Accounting Financial Accounting General

Ledger Account FBL3N Display/Change Line Items
FBL3N
Field Name
G/L account
R/O
127124, 127125, 127126
Company Code
3302
Cleared Items
Select Radio Button
Clearing date
11.09.2009

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Comments
Account number of the G/L line item display
financial accounting
Displays Items that were Cleared at the clearing
date
The opening date specifies as from when the item
is to be regarded as cleared.

19
Select
Input the deferred tax accounts and Select
Select
button
button to display vendor open items

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Select
button
Field Name
G/L account
R/O
127121, 127122, 127123
Company Code
3302
Cleared Items
Select Radio Button
Clearing date
11.09.2009

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Comments
Account number of the G/L line item display.
financial accounting
Displays Items that were Cleared at the clearing
date
The opening date specifies as from when the item
is to be regarded as cleared.

21
Select

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22
Select

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Select
button
From above screen shots the deferred tax amounts have been transferred from G/L Codes 127124,
127125 and 127126 to 127121, 127122 and 127123.
1.13 Conclusion
From the above configuration and transactional screen shots, the balance of deferred tax can be transferred
with more than one line item by using program RFUMSV50. The transferred balance can be captured in
separate G/L accounts like Service Tax Credit, Service Tax Educational Cess and Service Tax Higher
Educational Cess.

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Related Content
http://help.sap.com/erp2005_ehp_04/helpdata/EN/12/9650d041b04b619f613165c98623dd/frameset.htm
For more information, visit the Enterprise Resource Planning homepage.

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Copyright
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Transfer of Balance of Deferred

Tax Accounts when There Is More

Suresh Kumar Reddy B.S

Company: Intelligroup Asia Pvt. Ltd.

SAP COMMUNITY NETWORK

SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com | UAC - uac.sap.com

1.1 Check Routine Number ........................................................................................................................ 4

SAP COMMUNITY NETWORK

SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com | UAC - uac.sap.com

SAP COMMUNITY NETWORK

SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com | UAC - uac.sap.com

1.1 Check Routine Number

Via Transaction Code

From menu, Select Requirements -> Pricing

1.2 Check Function Modules

Via Transaction Code

1.3 Active Country Version India for Specific Fiscal Years

SPRO Financial Accounting Financial Accounting Global Settings Tax on

Via Transaction Code

SAP COMMUNITY NETWORK

SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com | UAC - uac.sap.com

1.4 Define Procedures

SPRO Financial Accounting Financial Accounting Global Settings Tax on

Via Transaction Code

User Action and Values

Specifies the conditions that are allowed for a

INDIA - VAT & Service Tax

Description of the procedure

SAP COMMUNITY NETWORK

and double click on

SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com | UAC - uac.sap.com

User Action and Values

Number that determines the sequence of the

Access number of the conditions within a step in

Every calculation procedure groups several tax

Input Defrd Service

Description of the condition type

If you specify a reference step at the same time,

The account key enables the system to post

SAP COMMUNITY NETWORK

SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com | UAC - uac.sap.com

1.5 Define Tax Codes for Sales and Purchases

SPRO Financial Accounting Financial Accounting Global Settings Tax on

Via Transaction Code

SAP COMMUNITY NETWORK

SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com | UAC - uac.sap.com

User Action and Values

Services like training,

Description of the taxable services

Indicator for differentiating output tax and input tax.

The target tax code is filled for deferred tax codes.

SAP COMMUNITY NETWORK

SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com | UAC - uac.sap.com

User Action and Values

SPRO Financial Accounting General Ledger Accounting Business

Via Transaction Code

SAP COMMUNITY NETWORK

SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com | UAC - uac.sap.com

User Action and Values

Enter a four-character code of your choice.

Per Tax Code, without clearing

The system generates a separate tax transfer

1.7 Assign Deferred Tax Rules to Company Codes