Telephone Invoices 

Use

Telephone invoices are subject to 25% VAT (value-added tax) as follows. VAT on the first 30% of the net invoice amount is nondeductible; VAT on the remaining amount is deductible (see the example below).

When an accounts clerk enters a telephone invoice, the system calculates the taxes automatically.

Activities

Customizing

The tax procedure delivered with the standard system comes complete with all of the Customizing settings you need to post telephone invoices as described. However, in order for the system to calculate the taxes properly, you must also implement a Business Add-In as described in SAP Note 638237.

If your system does not contain the Customizing settings, the SAP Note tells you how to make them yourself.

Day-to-Day Activities

Accounts payable clerks post telephone invoices using the standard transaction, using a tax code specially for telephone invoices (in the standard system, N4). The system calculates the taxes automatically. It generates a separate line item for the deductible tax, and expenses the nondeductible tax to the telephone expense account.

Example

You receive a telephone invoice for HUF 8,000 net. The tax is calculated as follows:

·        The first 30% of the net amount is subject to nondeductible VAT at 25%, which is HUF 600.

·        The remaining 70% is subject to deductible VAT, which is HUF 1,400.

When the accounts clerk enters the invoice, the system creates the following accounting document:

The VAT item only shows the deductible VAT. The nondeductible VAT is expensed to the telephone expense account.