VAT Pro-Rata Adjustment due to PR Calculation 

Use

You use the VAT Pro-Rata Adjustment due to PR Calculation report (RFID_PTVPRADPRC00) to make adjustment postings for VAT when you apply the pro-rata method to determine tax deduction. In this case, you need to make an adjustment correction posting because the VAT pro-rata percentage applied when an invoice is posted is always provisional so, at the end of the year, when the actual pro-rata percentage is determined, the tax amounts have to be recalculated based on the new coefficient, the base amount, and VAT percentage for each FI document/tax code. This adjustment calculation can also be made periodically, if required, and applied in the system at regular intervals during the year. In this case, the pro-rata coefficient applied on invoice posting is compared with the periodical pro-rata coefficient and the difference is posted in a periodical adjustment.

Prerequisites

Before you run the VAT Pro-Rata Adjustment due to PR Calculation report (RFID_PTVPRADPRC00), you have to carry out the IMG activities in Customizing for Financial Accounting by choosing General Ledger Accounting ® Business Transactions ® Closing ® Report ® VAT Pro-Rata Adjustment.

You also 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.

Features

The VAT Pro-Rata Adjustment due to PR Calculation report (RFID_PTVPRADPRC00) reads all acquisitions with the tax codes and other selection criteria that you specify on the selection screen, for the relevant year or period. Using the pro-rata execution coefficient that you specify in the Define Pro-Rata Coefficients transaction (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), the report then calculates the adjustments that have to be made and posts the relevant amounts (in local currency and using commercial rounding) using the customized posting aggregation key that you select on the Posting Aggregation Methods tab page.

If the difference between the tax amounts posted with the applied pro-rata coefficient on invoice posting and the tax amounts calculated with the annual or periodic pro-rata execution coefficient is positive, the adjustment is in favor of the State. If the result 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 relevant log report, Display Pro-Rata DPR Adjustment Documents or Display Pro-Rata Periodic PPR Calculation Adjustment Documents, depending on whether the adjustment was annual or periodic. You can view these log reports, 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 or Display Pro-Rata Periodic PPR Calculation Adjustment Documents.

The log reports register the document number of the adjustment posting and prevent 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 Calculation.