Posting Taxes 
Posting Taxes
Use
Which taxes are to be paid and how they are to be posted in the system depends on the tax regulations defined by law in the country of the company concerned. The postings made are controlled by the tax code. A distinction is made between the following:
Prerequisites
Function |
Setting in Customizing for Financial Accounting |
The tax code controls the tax rates, the accounts to be posted and the whole procedure. |
Financial Accounting ® Financial Accounting Global Settings ® Sales tax ® Calculation ® Define Tax Codes for Sales/Purchases |
Features
Deductible Taxes
Input tax is paid to the vendor, who passes this on to the tax authorities. The offsetting entry for the tax is posted to a separate input tax account; on the basis of this account and the sales tax account, Financial Accounting can calculate the difference between the tax received and tax paid and pay this amount to the appropriate tax authority.
The system creates a line for every tax code you enter. If various line items have the same tax code, the tax postings are added together.
Non-Deductible Taxes
There are three different ways of processing non-deductible taxes. In all three cases, the tax for a tax code can be defined on several levels. The postings on the individual levels can be distributed to different accounts.
With this processing method, you post the invoice and tax amounts to the vendor account. The taxes are distributed among the G/L account line items and totaled in each case as a net value.
With this processing method, you post the invoice amount and the tax amount to the vendor account. The offsetting entry is divided up: the offsetting entry for the invoice amount is posted to the stock account, and the offsetting entry for the tax amount is posted to separate tax accounts.
In this case, the invoice does not contain any taxes. The tax is determined by the tax code entered. You do not enter a tax amount. The tax expense is either distributed among the invoice items or posted separately. The offsetting entry is posted to separate tax accounts.
See also:
Entering Tax Data