Transfer Posting in FI-CA for Deferred Tax

Purpose
You use this report to separate paid deferred tax from unpaid deferred tax in Contract Accounts Receivable
and Payable (FI-CA) before you run the standard G/L reconciliation report that posts aggregated amounts per
tax account to FI-GL.

For a specific period, and based on the relationship in Customizing between the deferred tax codes and the
normal output tax codes, the report creates a transfer posting per deferred tax code for all paid deferred tax
items by transferring the amounts from the deferred tax accounts to the normal (non-deferred) tax accounts.
You define if this occurs without tax codes or if the deferred tax code is changed to the normal (non-deferred)
tax code. When you run the standard G/L reconciliation report, the system can then post the paid deferred tax
to the correct VAT account in FI-GL.

As required legally in certain countries, this report enables you to generate a financial statement version in
which unpaid deferred tax amounts are shown separately not only from normal (non-deferred) tax amounts, but
also from paid deferred tax amounts.

Integration
 For countries where VAT reporting is performed on tax code level and not on the VAT ID level of the
business partners, no additional VAT reporting is required in FI-CA. In this case, you must define that
tax codes are changed when the report creates transfer postings for deferred tax.
You do this by setting tax code handling to Change Tax Codes in the view Configuration of Transfer
Postings for Deferred Taxes (V_TFK_DF_CONF).
When you run the standard VAT declaration report in FI, you should also include the aggregated
documents reconciliated from FI-CA.

 For countries where VAT reporting is required at least on the VAT ID level of the business partners,
additional VAT reporting is required in FI-CA. We recommend that you use the database tables
DFKKREP06 and DFKKREP07 of the generic tax reporting tool to do this.
In this case, the setting for tax code handling (Change Tax Codes or Without Tax Codes in the view
V_TFK_DF_CONF) is irrelevant because the transfer postings for deferred tax are not recorded in the
generic tax reporting tool. However, you should make sure that the aggregated documents
reconciliated from FI-CA are excluded from the VAT declaration in FI. If you do not do this, they will be
reported both in FI-CA and in FI.

Prerequisites
 You have activated the recording of tax data in FI-CA in Customizing for Financial Accounting (New)
under Contract Accounts Receivable and Payable -> Basic Functions -> Tax Reports -> Activate
Recording of Tax Data.

 For each tax code used by your company, you have defined the point at which VAT is to be reported
(for example, when an invoice is paid). You do this in the Customizing activity Define Report Times
for Sales/Purchase Tax.

 You have configured the deferred tax transfer postings by calling the view Configuration of Transfer
Postings for Deferred Taxes (V_TFK_DF_CONF) in transaction SM30 and making the following
entries:

o Company Code
 o Tax Code Handling: Select either Change Tax Codes or Without Tax Codes.

o Reversal of Transfer Posting: Specify this according to your requirements (Reversal Possible,
Reversal Not Possible, or Reversal Not Possible After Transfer to G/L).

You can optionally enter the document type and the prefix for the reconciliation key (for example, DT:
standard invoice). If you make an entry for Reconciliation Key, the reconciliation key is created.
Your entries are used for the next transfer posting.

 In transaction FQEVENTS, you have assigned the following function modules to the events shown:

Event Function Module

20 FKK_DF_0020_XX
70 FKK_DF_0070_XX

Selection
Make your selections as required. The fields Company Code, Period start/end, Document Date, and Posting
Date are mandatory.

To run the report in test mode, select Test Run. In test mode, the database table is not updated.

Note that in update mode, the period start/end must be a whole month.

To display a list of invoices and the related payment documents that are processed when the report performs
the transfer posting of deferred taxes, select Show Detailed Document List.

Output
The summarized amount of paid deferred tax is posted in FI-CA from the deferred tax account to the regular
(normal output) tax account. The following data is displayed for each tax code:

Basic information:

 Tax code (even if the posting is performed without tax codes)

 Reconciliation key

 Transfer document number (with the option of navigating to the posted document)

 Document date

 Posting date

Posting transactions:

 Company code

 Account number
  Amount of deferred tax in local currency

 Local currency

 Amount of deferred tax in transaction currency

 Transaction currency

Documents relating to each tax code that were captured for the Transfer
Posting/Reverse in FI-CA for Deferred Tax report:

 Document number of the invoice

 Business partner

 Contract account

 G/L account

 Amount in local currency

 Tax amount in local currency

 Local currency

 Amount in transaction currency

 Tax amount in transaction currency

 Transaction currency

 Document number of the payment or partial payment