SAP FICO Tax Accounting1

Financial Accounting – Taxes Taxes in FI

Copyrights © 2012 SAP AG Germany


Creating Tax Codes

Creating Tax Codes

Transaction: FTXP

This area gives you a step by step explanation on "how to create a tax code in SAP". Later on these tax codes must be

used in the creation of condition tables such as for MWST.

Go to transaction code FTXP and select the country for which you need to create a tax code. This country is

automatically linked to the Tax Procedure which has been set up in the menu path [IMG - Financial accounting -

Financial accounting global settings - tax on sales/purchases - basic settings - Assign country to calculation procedure].

Enter in the field tax code. This must be a 2-digit alphanumeric code i.e. A5, 55, BB, etc.. Before SAP 4.5 (I believe)

you could use other special characters such as @, ? etc... But this is no longer applicable. See OSS note 212806.SAP

will ask you to complete other additional fields such as:

o description of the tax code: please give a clear description

o define the tax type: define whether the tax code is relevant for input or output tax

o Indicator which determines that an error message should be issued if the tax amount is not correct. It it recommended to

flag this.

o Eu code: One of the most forgotten parameter. If you do not set this parameter at "1" then all transactions with this code

will be not picked up in the ESL listing of that specific country. This code "1" represents all the Sales from one EU

country to another EU country.

o The target tax code fields are used in case of deferred taxes. This is applicable for example in France. The VAT needs

to be paid for example not when the invoice is issued but when the customer pays the VAT. There are here again

special programs available in SAP for deferred taxes.

o Reporting country: this field needs to be completed when you are using the plants abroad functionality. This means that

when you as a German company have a Belgian VAT number and you have sales in Belgium (+ you need to submit a

VAT return in Belgium) , then of course these invoices need to be booked in SAP with a Belgian tax code.

Further in the menu you can also allocate the amount where this specific tax code is used to a certain tax account. The

tax type fields such as Base Amount, Input tax, Output Tax ... can be determined via the calculation procedures.

Calculation procedures are defined in the IMG at [Financial accounting - Financial accounting global settings - tax on

sales/purchases - basic settings - Assign country to calculation procedure]. Here you will need to define also the

calculation levels. For example the Output tax is level 125 and the output tax will be calculated on the basis of the base

amount. Therefore you put for the output tax in the field "from level" 100. The level of Base amount is 100. You do the

same for the others.

Account Keys.

o NVV: The non deductible VAT is automatically added to the expenses account

o NAV: Indicate for this key a separate account for the non deductible VAT

o ESA: Output tax in case of Acquisition of EU goods

o ESE: Input tax in case Acquisition of EU goodsLast but not least you also need to complete the tax rate field.

Tax Percentage & GL Account assignment

Tax percentage can be maintained in two ways & that depends upon the Tax procedure that has been followed i.e.

if tax procedure is formula based then percentage can be maintained in FTXP only, where as if the procedure is

condition based then percentage has to be maintained under the identified condition type.

Once done GL accounts has to be assigned under OB40 for automatic posting of tax amounts.

https://wiki.sdn.sap.com/wiki/display/ERPFI/Creating+Tax+Codes


Tax Codes for India

Tax Code Configuration for India

Tax codes are used to calculate tax in domestic procurement. There are two type of tax procedures - TAXINJ and

TAXINN. TAXINN is condition record based tax calculation procedure. In upgraded versions normally TAXINN

procedure is adopted. By using different tax codes, the system determines different tax rates on a particular material in

a purchase order.

Following steps are followed to create a tax code -

1. To create TAX CODE, the t-code is FTXP (for TAXINN). Enter the country (IN) and enter the tax code to be created. In

the properties screen, give the description and tax type (V - INPUT TAX)

2. Assign Tax code to company code (SPRO)

3. To create a condition record - T-Code - FV11. For Each condition type, select the correct key combination and maintain

the required rates.

4. To change a condition record - T-Code FV12 (Optional)

5. To display a Condition record - T-Code FV13 (Optional)

1099MISC reporting

Of late, there have been a lot queries on 1099 MISC reporting. SAP Note No. 363650 clearly explains how to configure

this. As not everyone seems to be having access to this note, I thought of reproducing it here. At the end, vendor

master maintenance for 1099 vendors also is covered, which is not a part of the SAP Note.

A) How to configure extended withholding tax to get correct 1099MISC reporting?

1) Define a type:Go to IMG path:-> Financial Accounting Global Settings -> Withholding Tax -> Extended Withholdng

Tax -> Calculation -> Withholding Tax Type -> Define Withholding Tax Type for Payment Posting

Define one withholding tax type for 1099 federal reporting. If state withholding tax needs to be withheld, a second

withholding tax type needs to be created to allow two withholding tax postings for one vendor.

2) Define a code:

Go to IMG path: -> Financial Accounting Global Setting -> Withholding Tax -> Extended Withholdng Tax -> Calculation -

> Withholding Tax Code -> Define Withholing Tax Code

Define one code for each box of the 1099MISC form where a base amount needs to be reported.

The codes must have the following numbering to get correct reporting:

TYPE CODE DESCRIPTION W/T PERCENTAGE

FE 01 Rents 0%

FE 02 Royalties 0%

FE 03 Other Income 0%

FE 05 Fishing boat proceeds 0%

FE 06 Medical and health care payments 0%

FE 07 Nonemployee compensation 0%

FE 08 Substitute payment in lieu of dividends 0%

https://wiki.sdn.sap.com/wiki/display/ERPFI/Tax+Codes+for+India

http://wiki.sdn.sap.com/wiki/display/ERPFI/1099MISC+reporting


FE 09 Direct Sales to a buyer for resale 0%

FE 10 Crop insurance proceeds 0%

FE 3b or 13 Excess golden parachute 0%

FE 3c or 14 Gross proceeds to an attorney 0%

FE 7b Section 409A income 0%

FE 15 Section 409A deferrals 0%

Base amount, percentage to tax : 100 %

Postings, Post.indic. 1

Calculation, With/tax rate: leave blank

If tax must be withheld, a new code must be created starting with an F. Example F1 for rents. In this case fill the

following field as follows:

Calculation, with/tax rate: 30%

The codes for tax rate 30% should look as follows:


FE F1 Rents 30%

FE F2 Royalties 30%

FE F3 Other Income 30%

FE F5 Fishing boat proceeds 30%

FE F6 Medical and health care payments 30%

FE F7 Nonemployee compensation 30%

FE F8 Substitute payment in lieu of dividends 30%

FE F9 Direct Sales to a buyer for resale 30%

FE F0 Crop insurance proceeds 30%

FE Fb Excess golden parachute 30%

FE Fc Gross proceeds to an attorney 30%

FE Fd Section 409A deferrals 30%

FE Fe Section 409A inocme 30%

If state tax must be withheld, assign a second type to the company code as follows:


ST 16 State tax withheld depending on state

3) Assign Withholding Tax Types to Company Code:

Go to IMG path: -> Financial Accounting -> Financial Accounting Global Settings -> Withholding Tax -> Extended

Withholding Tax -> Company Code -> Assign Witholding Tax Types to Company Code

Switch on: Vendor data, With/tax agent and fill the validity period.

4) Assign an Account:


Go to IMG path: -> Financial Accounting -> Financial Accounting Global Settings -> Withholding Tax -> Extended

Wtihholding Tax -> Postings -> Account for Withholding Tax -> Define Accounts for Withholding Tax to be paid over

B) How to configure classical withholding tax for 1099MISC reporting

1) Define a code

Go to IMG path: -> Financial Accounting Global Settings -> Withholding Tax -> Withholding Tax -> Calculation ->

Maintain Tax Codes

Define one code for each box of the 1099MISC form where a base amount needs to be reported.

The codes must have the following numbering to get correct reporting (2001 reporting):

CODE DESCRIPTION

01 Rents

02 Royalties

03 Other Income

05 Fishing Boat Proceeds

06 Medical and health care payments

07 Nonemployee compensation

08 Substitute payments in lieu of dividends or interest

09 Direct Sales to a buyer for resale

10 Crop Insurance proceeds

13 or 3B Excess Golden parachute

14 or 3c Gross proceeds paid to an attorney

7B Section 409A income

15 Section 409A deferrals

Percentage subject to tax : 100 %

Mark box :Posting with the payment.

If tax must be withheld, a new code must be created starting with an F, Example F1 for Rents. In this case fill the fields

as follows:

CODE DESCRIPTION

F1 Rents

F2 Royalties

F3 Other Income

F5 Fishing boat proceeds

F6 Medical and health care payments

F7 Nonemployee compensation

F8 Substitute payment in lieu of dividends

F9 Direct Sales to a buyer for resale


F0 Crop Insurance Proceeds

FB Excess golden parachute

FC Gross proceeds to an attorney

FD Section 409A deferrals

FE Section 409A income

Percentage subject to tax: 100%

Withholding tax rate: 30% (or valid rate for reporting year)

Mark box: Posting with payment

To flag a vendor in SAP as a 1099 vendor, two fields need to be populated.

1. On the Control screen of the vendor master, populate either "Tax Code 1" field with vendor's Social Security Number

or ITIN if it is an individual or "Tax Code 2" field with his corporate tax ID for corporate vendors. The format for

SSN/ITIN is xxx-xx-xxxx and corporate tax ID is xx-xxxxxxx.

2. On the Accounting Info. screen, populate the "W.tax code" field under the "Withholding Tax" box.

Any posts done before this changes were implemented will not show on 1099. You will need to run program

RFWT0020 to flag 1099 items retroactively.

If the withholding tax base amount and/or the withholding tax code needs to be changed after an invoice has been

cleared please follow the procedure below:

1) Change Document Change Rules

Go to IMG -> Financial Accounting Global Settings -> Document -> Line Item -> Document Change Rules

Go to account Type K field name BSEG-QSSHB and click off Line item not cleared.

Go to account Type K field name BSEG-QSSKZ and click off Line item not cleared.

2) Change Document Change Rules for extended withholding tax

Go to IMG -> Financial Accounting Global Settings -> Line Item -> Document Change Rules

Go to account Type K field name

Go to field WITH_ITEM-WT_QSSHB and click on 'Field can be changed'

Go to field WITH_ITEM-WT_WITHCD and click on 'Field can be changed'

3) Change Withholding Tax Code

Go to IMG -> Financial Accounting Global Settings -> Withholding Tax -> Withholding Tax -> Calculation -> Check

withholding tax codes

Go to the respective withholding tax code and click off Posting with payment.

4) Change the payment document of the invoice which needs to be changed.

5) Your changed documents will be selected with report RFW1099M


Cross company Taxes and program RFBUST10

Cross company Taxes and program RFBUST10

Link to Content's target Space :

http://wiki.sdn.sap.com/wiki/display/ERPFI/Taxes+in+FI

Applies to:

Financials ERP; all releases

Summary

Tax determination in a Cross Company document, Intercompany Postings

Usage of program RFBUST10 in order to fill taxes also on 2nd company code.

Author(s):

Company: SAP

Created on: 19/11/2010

Author(s) Bio

SAP consultant in FI area since 1998

VAT expert consultant since 2007

Table of Contents

Cross company tax

RFBUST10

SAP logic for Transfer Posting of Tax for Cross-Company Code Transactions

In the case of cross-company code transactions, the whole tax amount is posted to and displayed in the first company

code only.

The tax arising in other company codes is ignored.

However, in certain countries such as Japan and Denmark, the tax amounts have to be displayed separately in each

company code. In this activity,

the program creates a list of the respective tax amounts for which automatic transfer postings must later be

made.

When you start the program, choose the (first) company code for which the tax is to be posted.

The number of documents to be included will depend on the fiscal year and the business periods (or posting date) you

enter.

The tax amounts are calculated according to the tax code or prorata.

Activities

Create a list of the tax amounts for which transfer postings must be made.

In spro -> Financial accounting -> financial accounting global settings -> tax on sales/purchases -> posting -> Transfer

Posting of Tax for Cross-Company Code Transactions

Please review the IMG activity documentation on same.

http://wiki.sdn.sap.com/wiki/display/ERPFI/Cross+company+Taxes+and+program+RFBUST10

http://wiki.sdn.sap.com/wiki/display/ERPFI/Taxes+in+FI


RFBUST10

Activities

Create a list of the tax amounts for which transfer postings must be made.

About this issue has been generated program RFBUST10

The report has the following contraints:

The company codes concerned must have the same local currency.

The tax code Customizing used for the transfer posting must have the same tax characteristics, in particular, the tax

rates for transfer postings in the relevant company codes must be the same.

The offsetting posting for the tax item is made to the company code clearing account. This account should therefore be

relevant for tax and permit postings without tax. In addition, you should be able to post to the clearing accounts

manually - the field "Post automatically only" should not be set in the master data of the clearing codes affected. This

implies that customer or vendor accounts are not permitted as clearing accounts.

Reversing the source document does not result in new cross-company code numbers. This means that transfer

postings already activated cannot be reversed by RFBUST10.

The batch input session names are generated automatically in the report, you cannot use your own naming convention.

You can make the Customizing settings in the Financial Accounting Implementation Guide. To do this choose Financial

Accounting Global Settings -> Tax on Sales/Purchases -> Posting -> Transfer Posting of Tax for Cross-Company Code

Transactions.

Selection

When you start the report, select the company codes for which you want to post tax. You can use the fiscal year, the

number of the cross-company code transaction, document types, posting dates, and fiscal periods to restrict the number

of documents to be taken into account.

If you have assigned an external number for the cross-company code transaction, you must select the field "Own

number for cross-company code transaction", so that these documents can be entered correctly. This does however

reduce system performance (recommendation: Do not assign external numbers for cross-company code transactions).

The parameter "Calculate tax proportionately" has the following effect: The proportion of tax to be transferred is

determined from the relation of the tax-relevant postings of the document, otherwise the tax is calculated from the tax

base amount with the tax percentage rate using tax code.

If a line item in the company code clearing account is only created per tax code and not per source document during the

transfer posting, this causes problems in value dating this posting for the purposes of calculating interest. If you activate

the parameter "Calculate value date", the following method of calculating the average value date is activated:

Using a time interval from day A to day B entered in the report, using

o all documents and their items, you calculate the difference between B and the value date X of the relevant posting item

per tax code, and multiply this difference by the corresponding tax amount. The resulting amounts are totaled and

divided by the total of the tax amounts from all documents. This result is the evaluted number of days relative to day B.

The actual value date is then day B, minus the evaluated number of days.

The following special cases should be considered:

o If the report is restricted by posting periods, the lower and upper limits of the time interval are calculated automatically

by the program.

o If X is smaller than A, X is replaced by (A - 1) (A minus one day); if X is larger than or equal to B, X is replaced by B.

Setting the parameter "Transfer postings via batch input" triggers the creation of a batch input session. Caution: From

an organizational view, you should ensure that the batch input session created is processed completely, and the dataset

selected is not evaluated again and posted in the form of a batch input session. The report does not automatically

deselect tax amounts that have already been transferred.

The parameter "Reduce taxes" determines whether the input tax to be credited in the first company code (output tax)

should be reduced, or whether it should be posted as output tax (input tax). If you select the field, the input tax (output


tax) is reduced. The tax reduction is carried out using the tax setting of the original document; the setting from the “Tax

for Cross-Company Code Transactions” Customizing is not used.

The parameter "Summarize sessions" controls at what level the transfer postings (batch input sessions) are

summarized:

0: All postings are summarized in one folder (folder name: BUXXXX, XXXX triggering company code). This value is only

useful if only two company codes are involved in the transfer postings.

1: All postings from one company code are summarized (name: BUXXXX, XXXX triggering company code). This value

is only useful if only two company codes are involved in the transfer postings.

2 (Default): All postings that should be transferred from one company code to a second company code are summarized

(folder name: BUXXXXYYYY, XXXX triggering company code, YYYY second company code) .

3: All postings that should be transferred from one company code to a second company code are summarized, but a

session is created for each tax code (folder names: BUXXXXYYYYZZ, XXXX triggering company code, YYYY second

company code, ZZ tax code).

The report generates a list of all cross-company code transactions that are relevant for tax. It also displays the tax total

per tax code and per company code. If required, you can also display the entire posting transaction.

NECESSARY settings into SPRO transaction

SAP Customizing Implementation Guide

Financial Accounting

Financial Accounting Global Settings

Tax on Sales/Purchases

Posting

Transfer Posting of Tax for Cross-Company Code Transactions

In the case of cross-company code transactions, the whole tax amount is posted to and displayed in the first

company code only. The tax arising in other company codes is ignored.

However, in certain countries such as Japan and Denmark, the tax amounts have to be displayed separately in each

company code. In this activity, the program creates a list of the respective tax amounts for which automatic transfer

postings must later be made.

When you start the program, choose the (first) company code for which the tax is to be posted. The number of

documents to be included will depend on the fiscal year and the business periods (or posting date) you enter. The tax

amounts are calculated according to the tax code or pro rata.

Activities

Create a list of the tax amounts for which transfer postings must be

made.


External Tax Calculation

External Tax Tax calculation and reporting is performed by an external tax system. The external tax system (3rd party tax package)

performs tax calculation based on its own jurisdiction codes. The external tax system communicates with R/3 through

the SAP Tax Interface System.

SAP Tax Interface System & External Tax System

SAP provides a Standard Tax Interface System, which is capable of passing all needed data to an external tax system

which determines tax jurisdictions, calculates taxes and then returns these calculated results back to SAP. This occurs

during master data address maintenance to retrieve the appropriate tax jurisdiction code and during order and invoice

processing out of FI, MM, and SD, to retrieve tax rates and tax amounts. The Tax Interface System also updates the

third party’s software files with the appropriate tax information for legal reporting purposes.

External Tax Interface Configuration Guide

Configuring the Communication Between SAP and an External Tax

Application

1. Define a physical destination

Communications between ERP and a sales/use tax package are established using SAP RFC (Remote Function Calls).

You must create an RFC destination that

specifies the type of communication and the directory path in which the tax package executable or shell scripts program

is installed. You must set up the RFC

destination as a TCP/IP communication protocol. The destination name is user defined.

IMG Path: Financial accounting (New)>Financial accounting global settings (New)>Taxes on

sales/purchases>Basic settings>External tax calculation>Define physical destination

1. * *Choose Execute;

2. Choose Create;

3. Select and input a logical name for the RFC Destination, for example, “SABRIX” or “TAXWARE” or “VERTEX”;

4. Under Connection type enter T;

5. Enter a short description text;

6. Choose Enter;

7. Define the directory path.

This is the directory path in which the tax package executable or shell script program is installed.

There are two recommended methods to define the directory path*:*

SAP and Tax Software Package reside on the same server If ERP and the external tax package are to reside on the

same server, click Application Server to select as the program location. In the field Program, the external tax package’s

executable or shell script program, along with the directory path in which it was installed, must be specified. Click Save.

SAP and Tax Software Package reside on different servers If ERP and the external tax package were to reside on

different servers, then this would be an explicit communication setup. Click Explicit host. In the field Program, input the

external tax package’s executable or shell script program along with the directory path in which it was installed. In the

field Target Host, enter the host name of the server where the external tax package resides. Click Save.]

8. If necessary, set up the correct SAP gateway host and gateway service. This setup is frequently an area of concern.

An understanding of the directory path is of utmost importance.

http://wiki.sdn.sap.com/wiki/display/ERPFI/External+Tax+Calculation

http://wiki.sdn.sap.com/wiki/display/ERPFI/External+Tax+Interface+Configuration+Guide


Transaction: SM59

The entries for the fields under “Start on Explicit Host” must be pretended by your system administrator.


Test the connection

To test the connection between ERP and the external tax system, choose the Test connection button in the upper left-

hand corner of the screen.

If any error occurs, verify that:

1. The connection type is TCP/IP.

2. Program location and host name are correctly specified.

3. The directory path and the name of the executable program are correct.

4. The gateway host and service name is correctly specified

5. The external tax package has been installed correctly and is the correct version.

6. The external tax package’s API for the ERP tax interface is installed correctly and is the correct version.

7. The ERP RFC libraries are the correct version.

8. The correct permissions are set for the user account.

9. The user has read/write authority.

If this test fails, halt the installation! This test must be successful in order for ERP to communicate with the

external tax package.

If the connection is successful, also verify that the external tax package installed supports the ERP version of the API.

You do that by going to:

System Information -> Function List

Check if the following functions are listed:

RFC_CALCULATE_TAXES_DOC

RFC_UPDATE_TAXES_DOC

RFC_FORCE_TAXES_DOC

RFC_DETERMINE_JURISDICTION

Testing the external system tax data retrieval

In order to test the external tax system, dummy RFC-enabled function modules

were created in ERP to simulate the external tax RFC functions. The RFC-enabled

function modules can be tested with the ERP Function Builder Test Utility.Testing

can be done for:1. Jurisdiction code determination2. Tax calculation3. Tax

update4. Tax forced update

It is imperative to perform these tests and check its results before continuing with further configuration. These

tests might also be useful to resolve customer problems.

With SE37 you can expect some of the following errors:* "timeout during allocate" / "CPI-C error

CM_RESOURCE_FAILURE_RETRY" It was not possible to connect to the remote machine. * Short-dump: "Start of TP

… failed" / "CPI-C error Please verify if the program name in the destination has been set up correctly. * Short dump:

"Function … is not available “You probably don't have a version of the external tax package that supports the ERP

release. * The export parameters indicate an error (RETCODE>0).Check your input parameters. These errors are

never ERP errors!_ If necessary, consult you external tax package vendor or the manual of the external tax system.*

No error occurs, but nothing comes back. Don’t forget to enter the destination of the RFC target system.

If one ore more of these functions are missing please contact your external tax system vendor for their latest

version.


Plants Abroad

Plants Abroad

Plants abroad is a functionality which is integrated in FI module (also partially in SD module). In the old days, every

plant needed to be assigned to the country of the company code. As of release 4.0, you can use Plants Abroad to

handle tax issues for companies that have VAT registration numbers in more than one country for example a Belgian

company code has not only a Belgian VAT registration number but also a German VAT registration number without

having a sales organisation in Germany but a warehouse instead. Plants Abroad ensures that the correct value-added

tax (VAT) registration number prints on sales and purchasing documents, calculates the right tax, handles stock

transfers, and conducts tax and Intrastat reporting correctly. The plants functionality allows you to assign plants from

different countries to one company code.

Having a foreign VAT number has also consequences like if a company has a foreign VAT number then it also needs to

file VAT return/European Sales Listings/Intrastat returns in that specific country. In order to achieve this, in SAP

appropriate customizing is needed.

You can activate the plants abroad functionality in IMG. The path is SPRO-Financial accounting - Financial accounting

global settings - Tax on sales and purchases - Basic settings - Plants abroad - activate plants abroad. Tick the box with

the question: Plants abroad activated?.

Once you have done this, you need to enter the foreign VAT numbers. The path is: SPRO-Financial accounting -

Financial accounting global settings - Tax on sales and purchases - Basic settings - Plants abroad - Enter VAT

registration number for plants abroad. Here you enter per company code a country code which is different then the

actual country where the company is established. Of course also the VAT registration number is required.

Once you have done this, you can create tax codes in FTXP, where you need to complete the field "reporting country" in

the properties of the new tax code. This means that you can use this tax code for the new VAT registration number/new

reporting country.

You can assign this tax code to 2 different tax procedures: namely the local tax procedure or TAXEUR. More

information can be found on OSS notes:

Oss note 63103: Explains logic regarding tax procedures if you are using plants abroad

Oss note 1085758: Customizing for stock transports

Another important OSS note is OSS note 850566. If you activate plants abroad then this will be activated for all

company codes within one client. You can deactivate for certain company code this functionality which is of course

described in the OSS note below:

Oss note 850566: deactivate plants abroad for a particular company code

Intrastat

For Intrastat, you need to maintain the Intrastat ID numbers. Most of the time when a company has a foreign VAT

registration number in another country, it needs also to file Intrastat returns. In order to run the Intrastat returns for that

specific reporting country, you need to maintain some master data relating to the company. You need to enter these

data in transaction OBY6 - click on additional details. In the middle of the screen you will see the field Intrastat number

ID. Please complete this field. You need to enter your VAT registration number here.

You also need to set up a new pricing procedure and condition types (WIA). Regarding this process you can find more

information on the following website of

SAP:http://help.sap.com/saphelp_45b/helpdata/en/34/60b19dae724effe10000009b38f91f/content.htm

The activation of plants abroad has also consequences for the VAT report (RFUMSV00 program). Here you need to

enter/activate additional parameters which are the following:

Reporting country / tax return country

Country currency instead of local currency

http://wiki.sdn.sap.com/wiki/display/ERPFI/Plants+Abroad

http://help.sap.com/saphelp_45b/helpdata/en/34/60b19dae724effe10000009b38f91f/content.htm


RFUMSV25 - Debugging info

RFUMSV25 uses logical database SDF for selecting tax items. This means that only these items can be selected which

have an entry in BSEG (taxes with 0% do not have such an entry).

Only tax indicators with one activated line can be processed.(Note 169104 contains an workaround for ESA /ESE). Due

to the fact that direct postings to a tax account cannot be one with SAPMF05a if the tax indicator contains more than 1

activated line such indicators are impossible to process.

The report contains 3 phases :

A) Building an extract from logical database SDF

B) Creating internal tables for partial payment processing from BSxD/BSxK

C) Processing extract via LOOP

Internal tables and other structures

A short description of the important internal tables

An extract is created during reading SDF the most important things happen at GET BSIS LATE

Usually the values in that extract do not cause problems.

The extract-processing happens after END-OF-SELECTION (please note that there is no naming convention at the

extract, so extract field names have to be looked up in various structures like BSIS, T_BSET,..).

0 percent items were also included in extract (for printing reasons). These items could be identified as they do no have

an entry in field SKB1-SAKNR.

T_VOPOS / R_XBLNR

created at GET BSIS LATE contains all documents that were already transfered by RFUMSV25 for prtial payments

TE_BSxD / TE_BSxK

created in form READ_ALL_PARTIAL_PAYMENTS. These tables should include all D/K lines that are partial payments

(field REBZG...) and were posted in the selected period .

TE_BSxD_NS / TE_BS_K_NS

created in form READ_ALL_PARTIAL_PAYMENTS. Created for partial payments with bills of exchange that were

posted before selection-date but due (ZFBDT) within selection-date.

ZTAB

collects per document of extract the information what part of the amount has to be transferred.

After the ‘attempt’ of collecting all of necessary documents ztab-flag1 indicates the follow up processing .

YTAB

collects the document numbers to be cleared

DTAB

collects all info to be printed

VTAB

documents posted by RFUMSV25 in former run

Main Breakpoints

AT DATES

....

ztab-buzei = bsis-buzei. <<< BREAK

This breakpoint is first reached after the whole extract is created;

If you now delete this breakpoint and create a watchpoint instead you will be able tracking the whole processing for one

specific document.

Watchpoint argument BSIS-BELNR = doc-number (BSIS-BELNR is element of extract)

If the document contains more than one tax line check BSIS-BUZEI.

CASE ztab-flag1. <<< BREAK

Table ztab is fully created now!

ZTAB_FLAG1 indicates how the program thinks to proceed with this document

http://wiki.sdn.sap.com/wiki/display/ERPFI/RFUMSV25+-+Debugging+info


‚0‘ do nothing

‚1‘ invoice cleared; no partial payment exists; program tries to clear the existing tax line

‚2‘ I did not understand what this should handle! With yht12/yht29 I eliminated this ‚2‘

‚3‘ do once again nothing

‚4‘ ‚5‘ there are partial payments and there is a lot to do

Important values in ZTAB :

NBTR1 invoices amount

NBTR2 part of the invoice amount that has to be transferred

SBTR1 tax amount for NBTR1

SBTR2 tax amount for NBTR2

TEILB

VOPOS already posted amount due to partial payment created by RFUMSV25 months ago

These are the two main breakpoints. With this in mind it is possible to investigate what is the documents status after

extraction from the database and what did the program try to do with the document.

PERFORM MELDEN_AUSGEGLICHENER_BELEG <<<BREAK

if a document is already cleared, this routine allows tracking the search for already posted partial payments, down

payment, bills of exchange.

Other useful information

Hidden parameter CTUMODE

setting this parameter to ‚A‘ (debugger) CALL TRANSACTION USING is called with ‚A‘ that means the FB01 / FB05

postings will appear on the screen if P_BTCI and P_CTU is switched on.

Every single transaction can be posted, cancelled and otherwise manipulated

About the usage of CTUMODE Please have a look at note 35612. Please alsoconsider AUTHORITY CHECK in your

own code.

RFUMSV25 Deferred Tax Transfer

Normally, tax on sales and purchases is reported when an invoice is issued. The tax payable amount is calculated as

the balance of the input and output taxes and cleared in the subsequent period. The tax for some transactions,

however, can only be deducted on settlement. This is common in France (output and input tax) and Italy (input tax).

Procedure:

This program automatically makes the transfer posting for tax on sales/purchases periodically. The return must be filed

within a certain time period after the invoice is paid. Program RFUMSV25 first creates a log of the cleared customer or

vendor invoices posted with deferred tax within the period. The program takes the tax amounts with their tax bases from

the document tax items. Customer or vendor data and the respective clearing date are taken from the offsetting items.

Tax items are only cleared if all the corresponding items have been cleared. To make the transfer posting for partial

payments, the program creates a corresponding clearing item.

The program differentiates between partial payments and credit memos. The transfer posting for the tax amounts

proportionally allotted to credit memos is only made when all affected invoice items are cleared.

This report program carries out immediate transfer postings for the deferred tax of down payments.

Requirements

If you select the indicator "Carry out batch input" (resulting in transfer postings for the deferred tax), this program can be

started ONLY ONCE for EACH "Clearing date" you enter on the selection screen.

Customer and vendor line items with a posting key for payments without special G/L indicator must not contain deferred

tax.

Special G/L indicators to be considered must be entered on the selection screen.

http://wiki.sdn.sap.com/wiki/display/ERPFI/RFUMSV25++Deferred+Tax+Transfer


Down payment clearings must be posted using SAP standard transactions.

Partial payments can only be posted for one specific invoice at a time. If a partial payment affects several invoices, a

separate document has to be posted for each invoice.

Each payment transaction has to be posted separately, that is, several incoming or outgoing payments cannot be

posted using just one document.

One period must be specified for the clearing date. The parameter "Open items at key date" refers to the items in the

account for deferred tax.

To be able to assign the tax amounts properly, you have to post the invoice documents according to SAP conventions.

If the program cannot process a document correctly, it will list the document in an error log.

Documents with more than one current account line and more than one G/L account line that is relevant for tax cannot

be processed. These documents are posted in an error log.

This program is occasionally used by companies who have invoices in

several currencies. If this is the case with your company, you should

note the following:

o Only use the program for a single currency in each case, and enter

the currency that you wish to select in the "Document currency"

selection field.

o In the configuration functions, ensure that the "Balances in local

currency only" field has not been selected for the relevant G/L

accounts.

o The exchange rate difference accounts for the relevant G/L accounts

must be configured correctly.

The "Permitted special G/L trans." selection field controls which special G/L transactions are to be taken into account by

program RFUMSV25. This field is for certain special cases only and no entry is normally necessary.

You cannot process down payments with bills of exchange. These are displayed in an error log.

----------------------------

Back to RFUMSV25, usually "List contains no data" depends by the

following:

Both Tax accounts have XOPVW checked off.

You should flag (and put it like optional in the group account)

Open Item Management skb1-xopvw = 'X

Line Item Display skb1-xkres = 'X

Taxes Basic Settings

Purpose

The purpose of page is to explain the basic setting of Taxes in SAP ERP Financials.

Overview

This page contains the basic setting and configuration of Taxes in SAP ERP Financials. The document will guide

users through the Taxes primary customizing, going from Basic Settings, Calculation and Posting.

Tax Customizing

In customizing you can find the tax in the following path:

http://wiki.sdn.sap.com/wiki/display/ERPFI/Taxes+Basic+Settings


Basic settings:

1) Check calculation procedure

- Access sequences: should not be changed

- Define condition types: should not be changed


- Define procedures: steps and order are defined here


The predefined procedures should not be changed.

Account key (ActKy):

- NAV: Input tax not deductible and not assignable:

Not deductible: a posting on a separate account is created for the input tax amount.

Not assignable: a possible account assignment from the G/L account line is not transferred to the tax line.

Transaction key 2

- NVV: Input tax not deductible and assignable:

No separate line item is created for the tax amount. The tax amount not deductible is added to the G/L account line

subject to tax. In case of several G/L account lines the tax amount is added to the particular positions proportionately.

Transaction key 3

- ESE/ESA: Incoming acquisition tax/Outgoing acquisition tax:

Received delivery and service from another EU country are in principle tax-free (for companies, who are authorized to

fully deduct input tax). Acquisition tax replaces import sales tax. As acquisition tax has to be shown in tax reporting,

acquisition tax is posted in a way so that an input tax line and at the same level an output tax line are created for the tax

transaction. The total tax balance is zero. In the system acquisition tax is mapped using account keys ESE und ESA. In

properties EU flag has to be set to “9“. The tax type is “V”.

2) Assign country to calculation procedure:

Predefined calculation procedures are delivered for certain countries (e.g. Germany TAXD, Austria TAXAT). The tax

procedure for each country is set here. Only one tax procedure can be assigned to each country (note 63805).

3) Checking and changing tax processing for each country:

Here the transaction keys are set:


4) Determine structure for tax jurisdiction code:

Only important in context with tax jurisdiction code (important e.g. for USA).

5) Define tax jurisdiction:

Also only important in context with tax jurisdiction code.

6) Change message control for tax:

Relevant application areas for sales tax are “FS” and “FF”

7) Change field control for tax base amount:

Here is determined whether the automatically calculated tax base amount can be altered manually during document

entry (valid for Italy, Czech Republic, Slovakia, and Argentina)

8) Deactivate tax conversion between local currency and document currency:

Deactivation of automatic conversion between local currency and document currency for manually entered tax (valid for

Czech Republic and Slovakia).

9) Plants abroad:

When "plants abroad’ is activated the following additional fields are filled in table BSET 3:

- LSTML -> tax reporting country

- LWSTE -> tax amount in local currency

- LWBAS -> tax base amount in local currency

When “plants abroad” is activated this is valid for the whole client.

During advance return for tax on sales (RFUMSV00) two additional selection options are offered in “Further selections” :

- flag “Country C instead of local C”

- tax reporting country


Calculation:

1) Define sales tax code (transaction FTXP):

No changes should be made on existing tax codes, which have effect on the calculation of tax, especially not when

postings according to this tax code exist. This could result in problems with backdated tax calculation for cash discounts

or cause inconsistency in tax reporting

- Properties:

- Tax accounts:


Shows the account on which tax is posted. This account is determined in customizing (Path: Financial Accounting è

Financial Accounting Global Settings è Tax on Sales / Purchases è Posting è Define Tax Accounts) An entry is only

possible when ‘separate line item’ is set in the transaction key for the tax amount.

All tax code settings can also be checked in transaction FTXP:

2) Assign posting date for tax determination to company code:

Only important in context with jurisdiction code.

3) Determine base amount:

Here is determined whether the cash discount amount is deducted from the base amount for the calculation of sales tax.

Posting:

1) Define tax accounts:

Here accounts, posting key, and rules for each transaction (e.g. ESE = incoming acquisition tax) are defined. Accounts

can only be defined for those transactions, for which transaction key “2” (= separate posting line) has been set. If for

“Rules” the flag “Tax code”’ has been marked, for each “Tax code”’ a separate account can be defined.


- Posting keys

- Rules

2) Define Account for Exchange Rate Difference Posting

If you use a separate exchange rate for the translation of taxes for postings in foreign currency or want the exchange

rate according to posting date and document date to be proposed, an exchange rate difference in local currency might

result. You must therefore define an account for the exchange rate difference posting.


This setting is not necessary if you translate the tax amounts using the exchange rate predefined by the tax base

amounts.

3) Assign Tax Codes for Non-Taxable Transactions

For postings which contain no tax transaction but an account is involved, which requires a valid tax code (e.g. in asset

accounting, depreciation...)

The tax code (e.g. V0, A0) has to be defined completely (account determination....)

4) Transfer Posting of Tax for Cross-Company Code Transactions

In the case of cross-company code transactions, the whole tax amount is posted to and displayed in the first company

code only. The tax arising in other company codes is ignored.

In certain countries such as Japan and Denmark, the tax amounts have to be displayed separately in each company

code.

The program RFBUST10 creates a list of the respective tax amounts for which automatic transfer postings must later be

made.


In this table the Tax codes for the transfer postings have to be defined.

- Requirements of RFBUST10

The company codes concerned must have the same local currency.

The tax code Customizing used for the transfer posting must have the same tax characteristics, in particular, the tax

rates for transfer postings in the relevant company codes must be the same.

The offsetting posting for the tax item is made to the company code clearing account. This account should therefore be

relevant for tax and permit postings without tax. In addition, you should be able to post to the clearing accounts

manually - the field "Post automatically only" should not be set in the master data of the clearing codes affected. This

implies that customer or vendor accounts are not permitted as clearing accounts.

Reversing the source document does not result in new cross-company code numbers. This means that transfer

postings already activated cannot be reversed by RFBUST10.

The batch input session names are generated automatically in the report, you cannot use your own naming convention.

You can make the Customizing settings in the Financial Accounting Implementation Guide. To do this, choose Financial

Accounting Global Settings -> Tax on Sales/Purchases -> Posting -> Transfer Posting of Tax for Cross-Company Code

Transactions.

Other Reports:

Report RFCORR26 è compares, if inconsistencies exist for tax codes and also offers a possibility to correct them

Report RFCORR99 è checks the whole tax customizing (but offers no possibility for corrections)

Further information you can find in the SAPNet,

- Alias “ISIM” and

- Alias “ASKB”

General note concerning RFUMSV00:

When RFUMSV00 seems to display “wrong“ amounts, the reason for that is mostly the document itself. Report

RFUMSV00 evaluates only the entries from table BSET.