Creation and Reversal of Acquisition Tax Accruals 

Purpose

The following process flow illustrates when in the procurement cycle you create and reverse acquisition tax accruals.

Prerequisites

To be able to create acquisition tax accruals correctly, you must follow these procedures in the procurement cycle:

·        Use goods receipt-based invoice verification.

·        If a delivery contains goods from more than one vendor, create separate goods receipts for each vendor.

·        If you enter a down payment, you must enter the purchase order number and item number in the down payment item.

Process Flow

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       1.      On 28 August, a buyer creates a purchase order for a quantity of sheet metal, following the standard procedure.

       2.      On 4 September, the warehouseman receives the sheet metal and records the goods receipt in the system, following the standard procedure.

The system generates the following accounting document:

       3.      On 15 October, the accountant creates acquisition tax accruals for the goods receipts posted in September that have not yet been invoiced – including the following one for the sheet metal:

The tax base amount is debited and credited to an account required for technical purposes only.

       4.      On 18 November, the invoice arrives and the accountant posts it using the standard procedure, as follows:

       5.      The accountant reverses the acquisition tax accruals.

The program generates the following posting:

The accrual tax is thus reversed and the tax account correct.