Entry Function: Domestic Input Tax (SAP Library

Entry Function: Domestic Input Tax

Use

The Domestic Input Tax function helps you handle the discontinuation of the 1 country/1 currency relationship that existed before the introduction of the euro. This function automatically determines the correct domestic input tax code for receipts in EUR entered during an international trip, but that are to be assigned to a domestic trip segment.

Previously the system compared the trip currency with the receipt currency to decide whether the receipt entered was a domestic or foreign receipt. This then determined which VAT code was generated as a default value. With the introduction of the euro several countries have the same currency, so that this procedure is no longer conclusive.

Prerequisites

The Domestic Input Tax function is only active for the following system settings:

Due to the introduction of the euro, in Customizing for Travel Management you want to set the domestic input tax default value for international receipts to Set acc. to trip destination. You do this under Travel Expenses ® Master Data ® Control Parameters for Travel Expenses ® Define global settings.

This means that the default values for the domestic input tax are determined by comparing the domestic and trip country. If "domestic country is the same as trip country" the appropriate domestic inland tax indicator is set for all the receipts, if "domestic country is not the same as trip country" the input tax indicator for foreign receipts is set.

A further prerequisite is that you must have maintained the travel expense currency in the Customizing for Travel Management, under Travel Expenses ® Dialog and Travel Expenses Control ® Dialog Control ® Store default values for dialog.

For information about the introduction of the euro and the changeover of the currency for travel expenses see the SAP Note 110183.

Features

The Domestic Input Tax function is available in the following Travel Expenses entry scenarios:

Entry scenario	Choose
Travel Manager	Travel Management menu ® Enter travel expenses
Travel expense manager	Travel Management menu ® Travel expenses ® Travel Expense Manager / Enter Travel Expenses (Expert)'
Travel calendar	Travel Management menu ® Travel expenses ® Travel Calendar
Weekly report	Travel Management menu ® Travel expenses ® Weekly Report

Example

You have been on an international trip to France and your expense receipts are in EUR. You had one overnight stay in a hotel in Germany (domestic).

In the desired entry scenario (see above), enter travel expenses with the trip schema "International trip".
Enter data as required.
Enter the hotel receipt in EUR.
Press Enter.

In the Input tax code column the code for a foreign receipt appears because the system has recognized a foreign receipt due to the 'trip currency is not the same as receipt currency' constellation.

Position the cursor on the receipt line and choose the pushbutton Domestic input tax.

The system assigns the correct domestic input tax code to the receipt automatically.

Continue processing as usual.