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 Entering Input Tax Correction Basis Records

Use

You manually enter input tax correction basis records in order to be able to post asset transactions, such as transfers or retirements, that are posted without tax.

You need to enter the following relevant amounts:

  • Net amount

  • Tax amount

  • Amount of deductible input tax

You can use these manual correction basis records, for instance, in order to transfer legacy data, or to enter a correction basis for which there is no accounting document in the system. If the transaction is, for example, a transfer that increases or decreases the asset value only after a certain date, then you can enter a valid-to date for the correction basis record. You can enter any number of manual correction basis records for a correction object.

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

Prerequisites

You made the necessary Customizing settings for input tax correction (see Executing Input Tax Corrections ).

Procedure

There are two ways of manually entering correction basis records:

  • In the assignment function, Assignment of Documents to Correction Objects :

    In the list output of this program, choose Corr. Record with the quick info text Create Corr. Record.

  • In the correction object:

    In the processing screen for the correction object, choose the Correction Basis tab page.

    Choose with the quick info text Add New Corr. Record.

    Choose one of the following functions:

    • Without document assignment

      Choose this function if you do not have a document in the system.

    • Retirement with correction

      Choose this function if you want to enter an asset retirement with an option rate valid from the day of the retirement to the end of the correction period. For the retirement it is assumed that the retirement option rate is valid to the end of the correction period. The correction determined with this option rate is brought forward in a single amount in the month of the retirement.

      The retirement option rate contains information as to what extent the part being retired will be treated as input tax deductible in the future by the purchaser. If the part being retired is sold using the full tax rate, then the retirement option rate is 100%. If it is sold without tax, it is 0%.

    • Retirement without correction

      Choose this function if, for the part being retired, the input tax correction should end on the key date of the retirement. This function is used in connection with sale of businesses, since in these cases the correction is continued by the purchaser.

    • Acquisition (transfer posting)

      You use this function if you want to make transfer postings to assets. For the part being acquired, the correction starts with the key date of the acquisition or retirement and applies to the remaining correction period.

Result

You manually created input tax correction basis records. These manually created records are included in the input tax correction as described above.