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Procedure documentationEntering Invoices from Foreign Vendors

 

To enter an invoice from a foreign vendor in Accounts Payable (FI-AP), you follow the standard procedure, and, in addition, you:

  • Create line items to withhold VAT from the vendor (a credit memo line item to reduce the amount of the liability to the vendor, and a line item to post this amount to the account for output VAT withheld)

  • Enter the customs declaration numbers and the goods’ country of origin, if this information is missing from the purchase order, or you do not have a purchase order

    This information is required by the Purchase Ledger.

Procedure

  1. On the SAP Easy Access screen, choose Start of the navigation path Accounting Next navigation step Financial Accounting Next navigation step Accounts Payable Next navigation step Document Entry Next navigation step Invoice – General. End of the navigation path

  2. Enter the header data as required.

  3. In the First Line Item group box, enter the vendor’s account number.

  4. Choose Enter.

  5. Enter the vendor item, including the tax code for input VAT (in the standard system, P2, but see also Customizing for Purchases from Foreign Vendors).

  6. In the First Line Item group box, enter the posting key 40 and the G/L account for the cost of the services or the goods (in the standard system, 31001200).

  7. Choose Enter.

  8. Enter the services or goods item, including:

    • The tax code P2

    • The goods’ country of origin and the customs declaration number in the Text field, if applicable (see the introductory text above)

      Separate the country and declaration number using a text of your choice, such as CD (for customs declaration). For example, if you receive an invoice from Germany with the customs declaration number 10005002/260105/1000111, enter DECD10005002/260105/1000111. The Purchase Ledger program can interpret this information.

  9. In the First Line Item group box, enter the posting key 21 and the vendor’s account number.

  10. Choose Enter.

  11. In the credit memo item, enter the amount of the VAT that you want to withhold and set the tax code to M2.

  12. In the First Line Item group box, enter the posting key 50 and the G/L account for the output VAT (in the standard system, 76701020).

  13. Choose Enter.

  14. In the VAT item, enter the amount of the VAT that you want to withhold, set the tax code to M2, and select Determine Tax Base.

  15. Save the invoice.

Result

The system generates the following accounting document: