Function documentationTransfer Postings for Secondary Events

 

The Secondary Events program creates postings to transfer the VAT on any invoice items whose actual usage does not match their planned usage.

Prerequisites

The changes are recorded by the Automatic Tracking of Invoices for APC function, and by the following reports:

These programs all record the change of usage in the secondary events table. This entry is then processed by the Secondary Events program, which identifies the target tax codes according to Customizing settings and makes postings to them. The settings are:

In customizing for Financial Accounting (New) under Start of the navigation path Asset Accounting Next navigation step Information System Next navigation step Country-Specific Functions Next navigation step Russia Next navigation step Input VAT on Assets Next navigation step Secondary Events Next navigation step Specify Transfer Posting Tax Codes for Items Whose Usage Changes End of the navigation path and, if you have activated Business Function FI, LO, Localization Topics for Russia 7 (FIN_LOC_CI_40), in customizing for Financial Accounting (New) under Start of the navigation path Financial Accounting Global Settings (New) Next navigation step Tax on Sales/Purchases Next navigation step Basic Settings Next navigation step Russia Next navigation step Specify Rules of Transfer for Incoming VAT for Separate VAT End of the navigation path. For more information on complex export scenarios, see below.

Complex Scenarios

If you have activated Business Function FI, LO, Localization Topics for Russia 7 (FIN_LOC_CI_40), you can make Customizing settings to define the target tax code for posting incoming VAT based on the source tax code from an incoming VAT invoice and the tax code from an export VAT invoice during more complex export scenarios. These can be:

  • Confirmation of an export operation done until invoice export expiration date

  • Export operation not confirmed inside a 180-day period

  • Confirmation of an export operation not confirmed on time

If the Specify Rules of Transfer for Incoming VAT for Separate VAT customizing activity does not contain the necessary settings, settings from Customizing activity Specify Transfer Posting Tax Codes for Secondary Events for Items Whose Usage Changes will be used instead.

Example

You commission an engineer to design a lathe, which you intend to manufacture for the purposes of selling. You enter the engineer's invoice using the tax code P2, and you assign the invoice item to the intermediate asset. This tax code is for deferred VAT on purchases of materials and services.

You pay the invoice, and run the Deferred Tax Transfer program to transfer the VAT to the input VAT account under the tax code PC. This tax code is for paid VAT on purchases of materials and services.

Note Note

If you select the accrual basis for VAT accounting, you do not need to run the Deferred Tax Transfer program, since the system creates the tax transfer documents directly from the Secondary Events program.

End of the note.

However, instead of selling the lathe, as originally intended, you use it yourself. To this effect, you transfer the costs to a new asset master for the lathe.

However, you must now repost the VAT as VAT on purchases of assets, using the tax code V9. This tax code is for paid VAT on purchases of assets. The Automatic Tracking of Invoices for APC function automatically detects this invoice item and creates an entry in the secondary events table, recording that the usage has changed.

When you run the Secondary Events program, it creates an accounting document to transfer the VAT and post it to a new G/L account.