Posting tax on two accounts

[Former Member]

Hi everyone.

I have the following business scenario:

- Invoice consists of several items

- One of those items is a subject to a special form of tax where the tax amount should be posted to one general ledger account, and at them same time the negative amount should be posted to another general ledger account

I have configured the tax indicator (FTXP) and assigned the two general ledger accounts, each to separate tax categories.

But, in FQC1 (posting area 0010, Tax on Sales/Purchases) I can only define one general ledger account for the tax indicator.

Is it possible to follow this scenario in IS-U? Any ideas would be appreciated.

Thanks in advance!

Marko

[william_eastman · Accepted solution]

Marko:

I think you will need an enhancement in event R402 to cater to your requirement.  The normal tax posting would be handled as normal, then in R402 post an extra line (with its offset) to the second account.  Or if the offset is truly not used, then you would probably have to calculate both in the event.  You might also try to calculate one of them in billing and then use R402 to post the offset.

regards,

bill.

[Former Member]

Hi Bill,

Thanks for the ideas. Ill try to clarify the request a bit more:

- When using tax code with both incomming and outgoing tax, I can specify one account for each tax posting. Simplified, one item only: the system posts base amount + tax amount to the income account (1), tax amount to the outgoing tax account (2) and the negative tax amount to incomming tax account (3). This would be the expected behaviour which would suit our customer needs.

- By using posting area 0010, I can specify one account only. When I post one item, from the upper example, I get the base amount + tax amount posted to the income account (1), and I get the positive and negative tax amount posted to the same general ledger account (2 and 3).

Following this, by using event R402 I could have two scenarios:

- if I use the already mentioned tax code, then I would have to reverse one tax posting and post it to another account.

- If I use the tax indicator with, for example, only outgoing tax, then I would have to make posting to the income account (because then the original posting to the income account would be base amount only) and incomming tax account.

Both ways, I need to have two additional posting items.

Marko