Automatic Tax Posting 

When posting a document, the system creates the tax items automatically. The data required to do this, the posting key, and the account number of the tax account must be defined in the system.

The posting keys are already defined in the system. The accounts vary according to the chart of account, and to post taxes in the system you must therefore define the account numbers of your chart of accounts.

To enable the tax accounts to be specified, an account key has been assigned to the tax types. You enter your tax accounts in the system for each chart of accounts and account key. For the tax types "Input tax" and for "Travel expenses", for example, the same account key (VST) is specified. You enter a tax account for all three tax types.

You can distinguish tax accounts by tax codes. That is, you can determine whether for a tax transaction represented by an account key, a single tax account should always be posted to, or separate accounts according to the tax code in each case. Since the advance return for tax on sales/purchases is created from the documents, you do not need to differentiate tax accounts according to tax code.

If the non-deductible portion of the input tax can be assigned, it can be apportioned to the G/L accounts and fixed asset accounts which have the same tax code. If it cannot be assigned, it is posted to a separate account. Whether or not the posting can be assigned is predefined for the tax types that the system defaults. If you want to post the input tax amount to a separate account, you define the account number for the automatic posting in the system.

The Define Tax Accounts activity in the Implementation Guide for Financial Accounting explains how to make the settings for automatic posting of taxes. See also Configuring the System Using the Implementation Guide.