SAP - Tax Configuration

Former Member
Jun 04, 2012 at 06:07 AM
Hi Adhi,

I am posting below how to do the configuration & what needs to be select, pls go
through the below example:

Customization of sales tax

1. Define tax procedure

Path :SPRO-Financial accounting –Financial accounting global settings-Tax on

sales /purchases-Basic settings-Check calculation procedure.

Control Data:

Double click on define procedures

Select new entries button

Procedure :H Tax

Description :Sales tax India

Save

Press enter to save in your request

Select H Tax

Double click control data folder

Select new entries data folder

Select new entries button

Step Co C Type Description From To Account key

10 0 BASB Base amount

20 0 MWVS Input tax 10 10 Select VST -Input tax

30 0 MWAS Output tax 10 10 MWS output tax

Save

Assign country to calculation procedure

Up to basic settings the path is same Assign country to calculation procedure

Select position button

Give the country :IN for India

Enter

For country IN assign procedure H tax

Save

Press enter to save in your request

Define tax codes for sales and purchases

Up to tax on sales of purchases the path is same-Calculation –Define-Tax codes

for sales and purchases. (Tr.code is FTXP)

Give the country :IN for India

Enter

Give the tax code :Vo

Enter

Description :0% input tax

Tax type :Select V input tax

Enter

Input tax, tax percent rate 0

Keep the cursor on ouput tax, tax percent rate

Select deactivate line (F5) button

Save

Tax code :V1

Enter

Description :4% input tax

Tax type :select V input tax

Enter

Input tax, tax % rate 4

Keep the cursor out put tax, tax percent rate

Select deactivate line button

Save

Tax code :A0

Enter

Description :0% output tax

Tax type :select A output tax

Enter

Output tax, tax percent rate 0

Keep the cursor our input tax, tax percent rate

Select deactivate line button

Save

Tax code :A1

Enter

Description :12.5% output tax

Tax type :Select A out put tax

Enter

Output tax, tax percent rate 12.5%

Keep the cursor on input tax, tax percent rate

Select deactivate line button

Save

Assign tax codes for non-taxable transactions

Path :Up to tax on sales/purchases the path is same Posting-Assign tax codes for
non-taxable transactions (Tr code is OBCL)

Select position button

Give your company code :AML

Enter

For AML select input tax V0

Out put tax Vo

Save

Press enter save in your request

Creation of GL master FS00

1. 1. VAT receivable Current assets,

2. 2. VAT payable Loans & Advances

Current liability

Tr code is FS00

Give the GL account no. :200155

Company code :AML

Select with template button

Give the GL account no. :200120 (Inventory RM)

Company code :AML

Enter
Change short and GL long text to VAT receivable

Select create / Bank /Interest tab

Field status group change to G041 (Tax office clearing accounts)

Save

One more account

Give the GL account no.100505

Company code :AML

Select with template button

Give the GL account no. :200155

Company code :AML

Enter

Select type/Description tab

Change account group to current liability and provisions

Change short text and GL account long text to VAT payable

Save

Give the GL account no.:200120

Company code :AML

From the menu select GL account change

Select control data tab

Tax category :Select * (All tax types allowed)

Select posting without tax allowed check box

Save

Ignore the warning message press enter

GL Account 300000 Sales A/c

Company code AML

From the menu select GL account change

Tax category :select *

Select posting without tax allowed check box

Save

Ignore the message press enter

Assignment of accounts for automatic postings:

Path :SPRO-Financial accounting –Financial accounting global settings-Tax on

sales/purchases-posting-Define tax accounts (OB40)

1. Double click on transactions à VST (input tax)

Give the Chart of Accounts :AML

Enter

Select save button or Ctrl+S

Give the account :200155 VAT receivable

Save

Press enter to save in your request

Select back arrow

Double click on transactions MWS(output tax)

Save

Give the account no.100505 VAT table

Save

Press enter to save in your request

In line environment FI consultant’s job: Customization

Creation of Tax procedure

Creation of tax codes

Creation of GL accounts

Assignment of GL accounts

MM module:

Purchase order material no.RM1

Purchase order vendor 1234

Purchase order Qty 1 Kg

Purchase order Rate 100

Purchase order tax code V1 (4% input tax)

Goods receipt

Tax procedure:

Base amount 100 (1* 100) inventory Account

Input tax on base amount 4 VST -200155 VAT receivable

(V1-4% ) -----

Vendor credit 104

===

SD module:

Sales order Customer no. 9876

Material FG1

Qty 1Kg

Rate 200

Tax code A1 (12.5%) output tax

Tax procedure

Base amount 200 sales account

Output tax on base amount 25 MWS -100505 VAT payable

At 12.5% -----

Customer debit 225

===

In FI for sales:

Customer account Dr 225

To sales 200

To VAT payable 25

Save

Sales invoice posting Tr code is F-22

Give the document date :Today’s date

Company code :AML

Posting key :01 customer debit

Account :6600001

Enter

Give the amount :225

Select calculate tax check box

Text :Tax sales invoice posting

Posting key :50

Account no. :300000 (Sales a/c)

Enter
Amount :*

Tax code :Select A1

Business area :AMLH

Text :+

From the menu select Document- Simulate

Double click on VAT payable line item

Business area :AMLH

Text :+

Save

Bad debits:

1. Creation of GL Master :Provision for bad debts reconciliation A/c No.200112

2. Link between sundry debtors and provision for bad debts :OBXY

E Reserve for bad debt

/\

200110 200112

1. Sales invoice posting F-22

1. Transfer from customer normal to customer special GL

E F-30

Customer special GL E ER Dr Provision for bad debt

To customer with clearing Sundry debtors

1. 5. After 3 years bad debtors Dr F-30

To Customer special GL Provision for bad debt