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Function documentation Plants Abroad 

Use

You can process tax returns for warehouses or sales and distribution centers abroad using domestic company codes.

These tax returns may be:

  • Tax returns to a foreign tax authority
  • EC sales list for another EU country

This procedure simplifies the process of making tax returns for companies with several plants or warehouses abroad. Note that these are not real operation centers abroad; you would have to create separate company codes for these.

Recommendation

You should only use this function if you have several warehouses, distribution centers, or plants abroad.
If however, you only have individual warehouses abroad for example, you should set up a separate company code for each warehouse. Otherwise the functions and scope of the Customizing settings for plants abroad would be too complicated for a single entity abroad.

For more information, see the Implementation Guide (IMG) for Financial Accounting under Financial Accounting Global Settings

® Tax on Sales/Purchases ® Basic Settings ® Plants Abroad.

Integration

This function affects the FI, MM, and SD application components. For more information, see the documentation for the SD and MM application components.

Prerequisites

If you want to introduce plants abroad, note the following in connection with tax codes and tax jurisdiction codes:

  • Jurisdiction code

Within one client, you can use the function Plants Abroad and the tax calculation with jurisdiction code in different company codes.

Make sure however, that the company code in which you want to use Plants Abroad does not use tax calculation with jurisdiction code, and that this company code is accordingly not assigned to a country in which the jurisdiction code is used.

  • Tax procedure and tax code

Define one tax procedure with a unique tax code for all the countries/company codes that are to be combined under the plants abroad function.

Example

You want to use plants abroad for your company codes Spain, France, and United Kingdom. However there are different tax on sales/purchases rates in each of the three countries. For each tax on sales/purchases rate, assign a unique tax code (not A0 in all company codes):

Company code

Spain
0001

France
0002

United Kingdom
0003

Tax on sales/purchases

12%

14%

16%

Tax code

AX

AY

AZ

 

In addition, you must ensure that each document contains the tax code for one country only.

The only exceptions to this rule are the following:

    • More than one tax country is allowed for incoming payments with tax adjustment for cash discount amounts, but only for those cash discount line items created automatically.
    • Inter-plant transfers between different countries from SD are allowed, since no cash discount adjustment is required here (only G/L account postings).

Features

This function is only for those transactions for which there are no further reporting requirements in the given country currency, other than submitting tax returns.

In order to use plants abroad, you use the field Tax Country in the tax code. The Tax Country is the country for which the tax return has to be created.

You can use the tax country to make settings that differ from the company code country for the following areas:

  • Tax base determination
  • Cash discount base determination
  • Currency key
  • Translation rule for the tax currency

You make and activate the settings for plants abroad in Customizing for Financial Accounting.

When you enter a document, you can enter one tax country; it must be unique in the document. The appropriate returns are then created for this country. The amounts are translated into the tax currency where this differs from the local or transaction currency.

Any exchange rate differences are created in the local currency of the company code in question, independent of the tax currency.

The tax programs allow you to select by tax country. Sender information is replaced by country-specific sender information where required.

You use the following programs for plants abroad:

Adapted programs

Comments

RFUMSV00

Selection can be made according to tax country (reporting country).
There is also a parameter enabling you to control whether the value is output in the national or local currency.

RFUSVB10

 

RFASLM00

Selection according to tax country possible. The amount is displayed in the national currency.

RFASLD02


(without CoCde address)

Selection according to tax country possible. The amount is displayed in the national currency.
Company code address data is not presently provided.

RFASLD12


(without CoCde address)

Selection according to tax country possible. The amount is displayed in the national currency.
Company code address data is not presently provided.

RFASLI00

(Include)
 

RFASLIDD

(Include)
 

RFWERE00

 

 

 

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