VAT Pro-Rata Adjustment due to PR Variation 

Use

You use the Pro-Rata Adjustment due to PR Variation report RFID_PTVPRADPRV00 to make adjustment postings for VAT when you apply the pro-rata method with fixed assets. Since fixed assets remain in the company for several years and the DPR (definitive pro-rata rate) to be applied changes each year, adjustment postings have to be made to cover the variation in DPR from the year of acquisition to each of the subsequent years in the asset’s useful life.

Prerequisites

Before you run the report, you have to ensure that tax adjustments resulting from definitive PR calculation have been made for the relevant assets in the years prior to the report execution year. You can do this by executing the Pro-Rata Adjustment due to PR Calculation report.

You also have to carry out the following IMG activities in Customizing for Financial Accounting, by choosing General Ledger Accounting ® Business Transactions ® Closing ®Report ® VAT Pro-Rata Adjustment:

●     Pro-Rata Coefficient ® Define Pro-Rata Calculation Entity

●     Pro-Rata Validation Entity ® Define Pro-Rata Validation Entity and Define Pro-Rata Validation Entity Values

●     Pro-Rata Transaction Key ® Define Pro-Rata Transaction Key

●     Business Add-Ins (BAdIs) ® BAdI: Pro-Rata Adjustment Document and BAdI: Pro-Rata Selection Document

In addition, you have to execute the transaction Define Pro-Rata Coefficients in the SAP Easy Access menu, by choosing Accounting® Financial Accounting ® General Ledger ®Reporting ® Tax Reports ®General  ® VAT Pro-Rata Adjustment ® Pro-Rata Coefficients ®Define Pro-Rata Coefficients.

Finally, if you want to run the report for migrated assets for which you do not have the original FI document, you also have to execute the transaction Define Asset Acquisition Value and insert the required values for each asset. To do this, in the SAP Easy Access menu, choose Accounting ® Financial Accounting ® General Ledger ®Reporting ® Tax Reports ®General  ® VAT Pro-Rata Adjustment ® Adjustment Variation ® Define Asset Acquisition Value.

Features

The Pro-Rata Adjustment due to PR Variation report determines the adjustment amounts due to DPR variation and makes the adjustment postings in the relevant years. When you execute the report, the system first compares the pro-rata coefficient that you specify in the Define Pro-Rata Coefficients transaction for the acquisition year (or if you have not executed this transaction, the system uses the entry you make in the Pro-Rata Percentage field on the Adjustment Options tab page on the report selection screen) with the coefficient specified for the execution year. If an adjustment has to be made, the report selects the assets that are to be subject to adjustments due to PR variation, based on your entries on the Customizing Options tab page.

The report only considers assets with an individual acquisition value of greater than or equal to the amount specified in the Individual Acquisition Value field or with a useful life of greater than or equal to the number of years specified in the Useful Life (Years) field. It also only considers postings for an AUC after those postings have been transferred to a completed asset with a "Capitalized on" asset master data year greater than the execution year.

The report then calculates the deductible amount as if the selected asset has been acquired that year by applying the DPR of that year, which you have specified in the transaction Define Pro-Rata Coefficients. It then subtracts this amount from the deductible amount that was calculated with the DPR of the acquisition year, and divides the result by number of years in the adjustment period for the relevant asset class, as specified in the Adj Period Pers. Est and Adj Period Real Est fields. The final result is the adjustment amount and this is posted (in local currency and using commercial rounding) according to the posting method that you select on the Posting Aggregation Methods tab page. If this result is positive, the adjustment is in favour of the State. If it is negative, the adjustment is in favour of the company.

Output

You can execute the report as a test run with or without document creation or as an update run, depending on your selection on the Posting Options tab page. The results are output in a list as defined by you on the Output tab page. This list contains the relevant information required for reporting purposes and can be submitted to the authorities, if necessary.

The system also generates a log entry for each process execution and records them in the log report Display Pro-Rata DPR Adjustment Documents. You can view this log report, in the SAP Easy Access menu, by choosing Accounting ® Financial Accounting ®General Ledger ® Reporting ® Tax Reports ® General  ® VAT Pro-Rata Adjustment ® Adjustment Correction ® Display Pro-Rata DPR Adjustment Documents.

The log report registers the document number of the adjustment posting and prevents double execution. To execute the report again for the same period, you have to reverse the adjustment document. To do this, in the SAP Easy Access menu, choose Accounting ® Financial Accounting ® General Ledger ® Documents ® Reverse  ® Individual Reversal.

Activities

To access the report, in the SAP Easy Access menu, choose Accounting® Financial Accounting ® General Ledger ®Reporting ® Tax Reports ®General  ® VAT Pro-Rata Adjustment ® Adjustment Correction ® Pro-Rata Adjustment due to PR Variation.