Tax on Sales/Purchases for Down Payments 

In the R/3 System, down payments are posted to special reconciliation accounts (special G/L accounts). For more information on special G/L transactions and down payments, see Special G/L Transactions in the Accounts Receivable and Accounts Payable documentation. The following section describes how the tax on sales/purchases is to be dealt with for down payments.

The legal specifications of your country determine whether or not tax on sales/purchases is to be posted for down payments. If as a general rule you do not post any tax on sales/purchases , you can hide the fields for the tax specifications. You do this via the special G/L account (down payment account):

You can create the master records with an account group for which the Tax category field does not appear. When creating the master record, you will not be able to make an entry in this field.

Alternatively, you can simply leave the Tax category field blank in the master record. All fields for tax on sales/purchases are then hidden on the entry screens. For more information on the screen layout, see Master Data in the Accounts Receivable and Accounts Payable documentation.

See also:

Net or Gross Display for Down Payments

Display on the Balance Sheet