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 Determining Input Tax Correction Basis

Use

The input tax correction basisforms the foundation for input tax correction.

Prerequisites

  • You created a correction object and assigned line items to it.

  • For automatic determination of the correction basis, you performed at least preliminary distribution of input tax for the objects and documents affected.

Features

The correction object is a means of grouping together postings that belong to one measure and therefore need to be considered together. The system uses this assignment to the correction object to determine the basis for the input tax correction. The correction basis is therefore the total of all assigned items.

This total includes the following amounts:

  • Net amount

  • Total tax amount

  • The deductible and non-deductible input tax that was determined during input tax distribution

There are two different record types for the input tax correction basis:

  • Automatically determined correction basis record

    The system determines these correction basis records from the original document items that are assigned to the correction object. Only those items are considered that were already distributed during input tax distribution. For each tax code in Financial Accounting, the system creates a separate correction basis record from the total of the individual items. You cannot change these correction basis records manually. They are automatically calculated by the system.

  • Manually entered correction basis record

    You create manual correction basis records to enter data on which the input tax correction is based (net amount, tax amount, deductible input tax). You can thereby transfer legacy data or enter data for which there are no input tax documents or accounting documents in the system.

    When the correction is calculated, the manual records are considered together with the correction basis records determined automatically from the assigned documents.

    Note Note

    For more information, see Entering Input Tax Correction Basis Records .

    For more information on the process for assets, see Executing Input Tax Corrections for Assets .

    End of the note.

Activities

The input tax correction basis is displayed in the master data of the correction object on the Correction Basis tab page (see Creating Correction Objects ). There you can display automatically created records or manually entered records.

You create manual correction basis records for data, for which there is no accounting document in the system and no individually calculated tax amounts, such as for asset transfers.