If you reimburse amounts that were paid by employees, this results in value-added tax postings. You should therefore perform the following procedures separately, in accordance with the declaration principle.

• Receipt of invoice with the subsequent value-added tax posting of expense to payables for employees in Financial Accounting.
• Reimbursement of the amounts via Payroll and value-added tax free posting of payables for employees to wages and salaries to be paid using the Posting to Accounting component.

It is technically possible to group together the posting of both these procedures and perform a value-added tax posting of expenses to wages and salaries to be paid using the Posting to Accounting component. To do so, a fixed value-added tax indicator must be assigned to the expense account to which the relevant wage type is posted in Financial Accounting. 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.