Deferred Tax 

Purpose

This process describes the sales tax summary report for deferred tax for down payment chains. For example, in Germany, credit-side down payment chains are subject to deferred tax.

Deferred tax is tax that is not declared to the tax authorities when the invoice is received, but at a later point in time.          

For down payment chains, there are specific features to be taken into account for the sales tax summary report for deferred tax. Therefore there are the following additional functions for down payment chains:

·        Creation of the final invoice

As long as no final invoice for a chain has been created, tax does not become due when the invoice is created, but when the payment is made. When posting the final invoice, the tax to date is offset against the total tax and all taxes are reported.

·        Transfer payments for retention amounts

Within a down payment chain, retention amounts can be created and cancelled at any time. When the final invoice is created, all open retention amounts for the partial invoices are cancelled.

Retention amounts are put into effect by a posting to a special G/L indicator and if a retention amount is cancelled, a transfer posting takes place from the special G/L indicator to a normal vendor line or customer line item.

If a retention amount is used for payment, the tax included in the retention amount is reported. The system transfers this tax to the invoice, where the posting of the retention amount to the expense account took place.

Prerequisites

·        The following Business Transaction Events (BTE) are assigned to the appropriate function modules:

Event	Function module
5000	/SAPPCE/DPC_INTERFACE_00005000 (final invoice)
5011	/SAPPCE/DPC_INTERFACE_00005011 (transfer payments)

You assign in Customizing for Financial Accounting under Financial Accounting Global Settings → Business Transaction Events. On the screen SAP Business Framework: Business Transaction Events, select from the menu Settings → P/S Modules → of an SAP ...appl.

·        You have entered a target tax code for the deferred tax indicator that you use in down payment chains.

You have configured this setting in Customizing for Financial Accounting under Financial Accounting Global Settings → Tax on Sales/Purchases → Calculation → Define Tax Codes for Sales and Purchases.

Process Flow

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       1.      For down payment chains that are posted with a deferred tax indicator, start report RFUMSV50 before the sales tax summary report (RFUMSV00).

Report RFUMSV50 determines the taxes to be reported for documents with deferred tax indicators and carries out a transfer posting with normal tax codes (target tax code). The target tax code specifies where the deferred taxes should be settled. You then report the transfer posting documents using report RFUMSV00.

The report also creates report items that are saved in table DEFTAX_ITEM. The report items are displayed in the output list for report RFUMSV52.

       2.      To carry out the sales tax summary report, execute report RFUMSV00.

To call the report, select transaction SE38 and enter RFUMSV50 for the program name.

       3.      To display the current status of deferred tax for down payment chains, use report RFUMSV52.

On the Credit-Side Down Payment Chain screen, select Goto → Tax Analysis to call the report.

       4.      To compare the deferred tax with the down payment chain data, execute report /SAPPCE/DPC_TAX from (Comparison Report for Down Payment Chains and Deferred Tax).