Use

For document items with real estate account assignment that were posted with multilevel tax codes, you can specify if the system should take the deductible input tax amount of the posting into account in input tax distribution.

Prerequisites

You are using multilevel tax codes that you defined in Customizing for Financial Accounting (see Processing Multilevel Tax Codes ).

Activities

Define the distribution of the multilevel tax code in Customizing for Flexible Real Estate Management (RE-FX). Enter an input tax code for each multilevel tax code that you want to be distributed. Since input tax distribution posting cannot itself process multilevel tax codes, these tax codes are replaced temporarily by normal input tax codes for the distribution posting only.

In Customizing for Flexible Real Estate Management (RE-FX), choose  Option Rate Determination and Input Tax Distribution Input Tax Distribution with Multilevel Tax Codes .

Note that the same tax rate must be defined for the input tax portion of the multilevel tax code and for the input tax code assigned in the system.

Advance return for tax on sales/purchases:

For the advance return for tax on sales/purchases, you have to remember that the original document (multilevel tax code) and the distribution document (simple tax code) were posted with different tax codes. Since the input tax portion of the multilevel tax code has to be equivalent to the tax rate of the simple tax code, the two tax codes can be combined for the advance return (for example, input tax of 16%).

If no entry exists in this IMG activity for a multilevel tax code, then the system does not continue processing the input tax amounts in input tax distribution.

Example

For a sample calculation, see Examples: Input Tax Distribution with Multilevel Tax Code .