I created Tax Codes for Sales & Purchase with the following setting:
Acct Key= VST (Input Tax), Condition Type MWVS Tax %= 16%
At the time of Invoice Posting (FB60), I check the "calculate Tax" flag and select the correct tax code. The amount entered is the Amount charged by the Vendor, not inclusive of the 16% VAT. Example: $100
The system posts:
Dr Expense.......84 USD
Dr VAT A/C......16 USD
This is not what is supposed to happen. System is supposed to calculate Tax on the amount ($100) and post $116 to the Vendor. So this is what the entry should be:
Dr. Expense....100 USD
Dr. VAT A/c-....16 USD
Cr. Vendor......116 USD
I am not sure where what the problem is. I checked the Condition Type (MWVS) settings.The condition category is "D" (Tax).
Any help would be highly appreciated.
Thank you much.
Thank you so much for your input.
I was wondering if there is anyway we can have Invoice posting exclusive of VAT?
As in the user enter the Invoice amount exclusive of Tax? As in the user only enters $100 and the system automatically calculates VAT on that (example: $16) and books $116 for the Vendor Payable.
I did the "edit option" and it actually requires me to still enter $116 in Vendor amount, and $100 on Expense line item.
You need to enter 116 only for the vendor line item, as this is what you need to pay to the vendor (i.e. inclusive tax).
System calculates the tax of 16% on the exense line item of 100
So that the entry goes as:-
Cr Vendor 116
Dr. VAT A/C 16
Dr. Expense A/c 100
Also note that changes in FB00 allies to that user only. If you want to make the calculation changes for all users, then you need to activate the checkbox "Tax Base is Net Value" for your company code in transaction OBY6.
Once you have selected the "Calculate tax on net amount" in respective user master record...
Enter the expense GL Account in FB60 item and also select the Calculate Tax box then system will show you the Amount in the right top which must be entered manually in the Amount field in the header which will be accounted to Vendor...amount field can not be derived automatically...
Also, at the time of payment posting, the VAT is inclusive in the Vendor Payment. SO currently this is the entry for payment (VAT WHT =10.67% of Base amount)
VAT WTH..Cr 10.67
Is there anyway we can actually split the net amt and the VAT for payment posting so it shows up like this:
Vendor... Dr 100.00
VAT/ac... Dr 16.00
Cash....... Cr 105.33
VAT WHT..Cr 10.67
Thank you in advance for your input.
Vendor line is inclusive of tax as you have to pay vendor the total amount including VAT. This is the amount also mentioned in invoice from vendor.
It is the liability of vendor to ay to government the taxes.
Suppose if you post to VAT account, then how will system clear it off?
When i check the "Non deductible Tax" for VST, I srill have to enter the total amount inclusive of the VAT in the Vendor Amount and the net amount (non-inclusive of VAT) in the expense line item. This is the same as "Editing option- calculate tax on net amount". The user will still have to enter the Invoice amount inclusive of VAT for the Vendor. Its only in the line item that they can enter the VAT non-inclusive amount.
Is there a way at all, in SAP, that we can enter Vendor invoice amount -non-inclusive of VAT, and the system just calculates the tax based on the code and derives the total amount owed to the Vendor? As in if the amount in Vendor invoice is $100 (not inclusive of VAT), then is it possible to enter $100 in the Vendor amount as well as expense line items and the system posts $116 owed to the Vendor based on the tax code?
Also at the time of payment, what is the need to/idea behind splitting Vendor amount and VAT? Shouldn't the payment posting be Vendor Dr.... Full amount (inclusive of Tax)? The requirement is to post Vendor and VAT separately.