Postings from the payroll results - usually postings in the form of Expenses to Payables - are not usually subject to value-added tax. Neither the expenses, nor the payables contain input or output tax. When posting payroll results, this does not usually affect accounts to which amounts subject to value-added tax as a result of other transactions are posted.

The posting of value-added tax using the posting to Accounting component is only technically possible in a few cases for reasons of upward compatibility. However, we do not recommend this procedure.

If you want to perform value-added tax postings using posting to Accounting against our recommendations, you should consider the following points: Bear in mind that this is not a complete list:

• In the countries in which not all the information for the calculation and posting of value-added tax is available in the payroll results or during the posting of the payroll results to Accounting, no value-added tax postings can be performed using the posting to Accounting component. The USA and Canada are, for example, amongst these countries, as the system requires a Jurisdiction Code in this case, which is not available in Payroll.
• If you want to perform a value-added tax posting using posting to Accounting, there should not only be a check on the legal side, this procedure must also be agreed on internally.
• Using value-added tax postings using posting to Accounting:

• Separate business transactions are grouped together.
• Sometimes, amounts are posted using the revenue principle.
• The value-added tax is posted in the company code in which the accompanying expense is posted. For this reason, this procedure leads to incorrect results if there are cross-company code procedures. This can have serious consequences if the company codes do not belong to the same integrated company liable to sales tax.

In the following sections, you find examples of value-added tax postings and notes on which procedures are planned for these postings in the standard system.

Bear in mind that this is not a complete list: Other procedures are also feasible in which value-added tax postings can occur.