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 VAT Transfer of Credit Memos (Czech Republic)

 

With the VAT transfer of credit memos, you may apply for VAT deduction (decrease of the output tax) from a credit memo issued to a customer only if the customer confirms the credit memo.

When you post a credit memo for a business partner who is a VAT payer, the system posts the tax and expense amounts of the credit memo to temporary accounts and assigns the tax amount to a temporary tax code. After you have received a confirmation about the delivery of the credit memo from the business partner, and you have set the status of the credit memo to delivered, the system transfers the tax and expense amounts to the target tax code.

You use the function for processing the VAT transfer, which contains the following activities:

  • You can display all the credit memos that were created for a business partner.

  • You can set the status of credit memos to Delivered.

  • You can reverse VAT transfer documents.

This process only applies to credit memos that are issued to business partners who are VAT payers. The tax in credit memos to business partners who are not VAT payers is posted directly to the relevant target tax code.

Technical and Other Details

Technical Name of Product Feature

TELCO_CREDIT_VALIDATION

Product feature is

New

Country Dependency

Czech Republic

Software Component Version

IS-UT 617

Application Component

IS-T-CA (Contract Accounts Receivable and Payable)

Availability

SAP Enhancement Package 7 (SP05) for SAP ERP

Required Business Function(s)

TEL_CA_LOC_1

Customizing

You make the following settings in Customizing for Contract Accounts Receivable and Payable (FICA) under Start of the navigation path Business Transactions Next navigation step Tax Transfer Next navigation step Credit Memos End of the navigation path:

  • Start of the navigation path Determine Credit Memo Items for VAT Transfer End of the navigation path

  • Start of the navigation path Assign Temporary Tax Codes to Target Tax Codes End of the navigation path

  • Start of the navigation path Assign Document Types to VAT Transfer End of the navigation path

  • Start of the navigation path Business Add-Ins (BAdIs) Next navigation step BAdI: VAT Transfer Enhancements End of the navigation path

If negative posting and/or reversal of VAT transfer is needed, you must also complete steps in the following Customizing activities:

  • Start of the navigation path Financial Accounting (New) Next navigation step General Ledger Accounting (New) Next navigation step Business Transactions Next navigation step Adjustment Posting/Reversal Next navigation step Permit Negative Posting End of the navigation path.

  • Start of the navigation path Contract Accounts Receivable and Payable Next navigation step Basic Functions Next navigation step Postings and Documents Next navigation step Document Next navigation step Maintain Document Assignments Next navigation step Document Types Next navigation step Maintain Document Types and Assign Number Ranges End of the navigation path.