Error for budget exceeded for VAT amount

[Former Member]

Hi,

We are Ecc6 ehp4 and implementing the BCS part of the FM. For tax setting I have selected "Gross Tax".

I have a budgte for 80000/- Now I have created a PR for 10Qty @8000, and created a PO for 5 Quantity @8000/-. and tax code includes Excise 12.36% which is beneficial and Vat 5% which is not beneficial. Now at the time of saving the purchase order, system is giving the error of budget exceeded and the amount is exactly equal to VAT amount. I am getting the same error in all cases where I have tax which is non beneficial.

Is the selection of " Gross Tax" is correct? or is there any other setting I need to look at?

Please advise

Regards

Shailesh Joshi

[ankit_agarwal8 · Accepted solution]

Hi Shaileash,

i hope "Not beneficial" means non cenvatable. If vat tax is not beneficial, it means vat tax amount is going in inventory account.

and you budget check is activated on inventory account. So system is behaving correctly as inventory is hitting by 8400 ( 8000 + 5%(8000)).

In this case you need budget of 8400/-.

Regards,

Ankit K. Agarwal

[former_member184992]

Hi Shailesh,

Did you check SAP Note 1028277 - Account assignments in tax items?

Regards, Vanessa.