8/9/2019 VAT Transfer Posting

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Confguring a Vendor Account or Automatic VATTranser Postings

The input and output VAT taxes are set up in transaction FTXP and hold the rates that will be applied to the respective

documents. The input tax code can be applied on purchasing and accounts payable-related transactions by any of the

following methods

•  Assigning it to the info record of the vendor!material "#$%%&'• $ntering it in the ()nvoice* tab of the purchase order line "#$+%,&'

• $ntering in the )nvoice Verification transaction "#)&'

• $ntering it in an accounts payable invoice "F/01&

The output tax code is applied on sales and accounts receivable-related transactions by any of the following methods

•  Assigning it to a sales condition record for tax "V2%%&'

• $ntering it in an accounts receivable invoice "F/31&

#ost countries re4uire that a net payable!receivable of VAT is sent to the government5 which means that the accounts that are

used for input and output VAT should be netted off in order to establish what is owed or expected as a refund. The input and

output tax accounts can be set up in transaction FTXP for the relevant tax code "clic6ing on the (Tax Accounts* button& or in the

automatic posting configuration transaction /71. To configure the account for VAT to be paid over you can go to transaction

/89 or to the following configuration menu path ":P& Financial Accounting ",ew& -; ?ou can however5 directly enter a vendor account in this table by using this simple tip clic6 on the (Posting 2ey* button in that

transaction "/89& and replace the debit!credit posting 6eys 71!C1 to the accounts payable posting 6eys +%!D%. Ehen you do

so hit (:ave* and then clic6 on the (Accounts* button and then you can enter the relevant vendor account. ,ote that if you drop-

down in this field it will still show you a list of

"vendors&.

The standard VAT program FG#:V11 "or transaction :HA=H831%+DC3& can then be run to allow you to display the input

and output taxes on all your sales and purchasing transactions in a specified period range. )t can also post the VAT balance to

the vendor account configured above. )f you want to enter a different vendor account to the one configured5 enter the

appropriate vendor account number in the field (Alternative Tax Payable Account* which is located in the (Tax Payable Posting*

section.