If the company issues invoices to employees (for example, for company-owned apartments, private conversations using a company-owned telephone, and so on), this results in value-added tax postings. You should therefore perform the following procedures separately, in accordance with the declaration principle.

• Creating an invoice with the subsequent value-added tax posting of employee receivable to income/expense reduction. This procedure is performed in the Financial Accounting component.
• Retaining the amounts claimed via Payroll with the subsequent value-added tax free posting of personnel expense to employee receivable using Posting to Accounting.

It is technically possible to group together the posting of both these procedures and perform a value-added tax posting of personnel expenses to income/expense reduction using the Posting to Accounting component. To do so, a fixed value-added tax indicator must be assigned to the income/expenses account to which the relevant wage type is posted. This value-added tax indicator is then taken into consideration when posting the payroll results to Accounting so that the value-added tax is calculated and posted.

Bear in mind that we do not recommend this procedure and cannot guarantee that the calculation and posting of the value-added-tax always corresponds to the legal recommendations.