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Object documentation Input Tax in Vendor Line Items  Locate the document in its SAP Library structure

Definition

Tax in a vendor invoice. The deductible portion of the input tax can be reclaimed from the tax authorities.

Use

Tax on sales/purchases is deducted from amounts in G/L account items and not from amounts in vendor items. For vendors, tax on sales/purchases is input tax and is posted to a tax receivable account. In systems delivered to countries which have no tax on sales/purchases, the Tax code field is suppressed. You can enter tax on sales/purchases for the invoice in the following ways: You can

The system posts one item for every tax code.

Structure

The following scenarios are possible when entering taxes:

 

The following figure shows the options available for entering a tax code in each vendor line item.

It illustrates how input tax and a vendor invoice are posted. The system posts the input tax to the tax receivable account automatically.

This graphic is explained in the accompanying text

Note

Most countries have more than one tax on sales/purchases rate. The tax return must include a separate line for each rate. You must therefore enter a different tax code for each tax rate.

For more information about preparing the tax returns for submission to the authorities, see FI Closing and Reporting.

 

 

 

 

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