Taxes on Sales/Purchases Handling: Net Procedure

Use

In the Public sector input tax and taxes on sales/purchases play a subordinate role. However, there are areas in which these taxes are entered, for example, in "public-owned commercial operations".

You can show accounting transactions (which involve input tax and sales and purchasing tax) in the SAP system according to the net or gross procedures. You use the net procedure if net and tax amount are to be posted on different commitment items.

You will find information on the gross procedure under: Taxes on Sales/Purchases Handling .

Prerequisites

  • The net procedure ( separate VAT ) must be set up in Customizing for Funds Management Government. You set it up in the FM IMG under Start of the navigation path Actual and Commitment Update/Integration Next navigation step General Settings Next navigation step Make Other Settings. End of the navigation path

  • A commitment item must be created for each tax transaction (output tax, input tax). This commitment item must be assigned to an FI G/L account to which a corresponding tax code must be assigned. The assignment of a commitment item to a FI G/L account is necessary, since the commitment item itself does not contain tax relevant information.

Features

If tax and net amount are posted on different commitment items, you need to separate these commitment items when entering the request. The system normally derives the "tax commitment item" from the G/L account. But you can also enter it manually in the field TaxCmmtItem . Alternatively you can use enhancement SAPLF0KE to derive the tax commitment item (component EXIT_SAPLF0KE_001, development class FMFI).

The availability control takes place separately, that is, both against the commitment item budget, to which the net amount was posted and against the budget of the "tax commitment item".