Tax category in GL Account master data?

[Former Member]

Hi all, 

We have maintained a tax code 'AA' into a GL master data - 'Tax category' field and untick 'posting without tax allowed' under 'Control Data' tab.

However, during payment posting (via transaction code F110) to that GL account, the tax code field was posted with blank and not defaulted to tax code 'AA'.  The tax code was defaulted for that GL account if I post via transaction code FB60.

Appreciate if anyone can share with me the reason why and how to auto derive the tax code for a GL account during F110 posting?

Thanks in advance.

Regards,
May

[Former Member]

Hi All,

Thank you very much for all your feedback.

The GL account for the bank sub account and the exchange gain/loss account were derived correctly. The issue is on the tax code did not auto populate during the payment posting via F110, even though I have maintained the tax code in GL account master data.

Would like to confirm my understanding:

Regarding the 'Tax category' field in GL account master data under 'Control' tab, is it true that the tax code maintained there ( in my example is tax code 'AA') will only useful and auto populated during the document entry only (e.g. transaction code FB60, FB01, FB65 etc), this field will not works for those automatic posting (e.g transaction code F110)?

Thanks.

Regards,

May

[Former Member]

Hello May,

Greetings!

Pl. check this Table REGUPW relating to F110. Also pl. make sure that you've created a WHT Code & Type and assigned it to Vendor. As far as I know, Input tax will not work in F110 at the time of payment to vendor.

That is why though you've assigned Tax code in GL account it is not working for you. Thanks.

Best Regards

Venkat

[Former Member]

Hi Venkat,

Thanks a lot for your feedback.

But I do not want any tax code posted for vendor and bank sub account.

Just need the tax code auto populated for the exchange gain/loss GL account and is an output tax.

To achieve, I still need to create WHT code & Type assigned to vendor?

Thanks,

Regards,

May

[Former Member]

Hi May,

I think if you can share some screen shots we can understand the points better and we can come up with some good options/solutions.

If you ask me, when you assign Tax code to Exchange rate GL a/c it will work. But again, what should be the accounting entry you require? Since you've mentioned it as Output tax are you receiving payment from customer through F110? Regards

PS: Pl. share some screen shots

Best Regards

Venkat

[Former Member]

Hi,

Please check Control Parameter for Bank Sub GL account also. Bank GL account in APP are Bank Sub Account.

Regards

[Former Member]

Hi May

Greetings!

Can you pl. check some basic settings?

1. GL Accounts have been assigned for Exchange Rate Differences

2. GL Accounts have been assigned for Payment Differences with Alternative Currency (If required)

3. Field Status Group maintenance for that FSG & Posting keys... Thanks

Regards

Venkat

[Former Member]

Hi Julie, Prasad and Vineet,

Thanks a lot for all your feedback.

Let me explain in detail:

The GL account which required tax code is the exchange gain/loss GL account. For example, GL account XYZ.

The tax code we required to enter is 0%. For example, tax code 'AA'

When we make a foreign currency payment in SAP via F110, SAP will automatically post the exchange gain/loss into this GL account XYZ.

We have maintained a defaulted tax code 'AA' into GL account XYZ master data. However, when we execute the payment run, the GL account XYZ post without tax code, but we need tax code 'AA' to be posted there.

Example on the entries:

Debit Vendor account

Credit Bank account

Credit GL account XYZ should be post with tax code 'AA'.

We would need to have the tax code post to exchange gain/loss account for legal purpose.

Appreciate all your helps.

Thanks & Regards,

May

[former_member198650]

Hi May,

Have you maintained the tax category as * in the bank GL account?

Regards,

Mukthar

[Former Member]

Hi Mukthar,

Thanks for your feedback.

Yes, I have maintained the tax category as '*' in bank GL account.

But still the tax code not posted for the exchange gain/loss account.

Thanks & Regards,
May

[former_member198650]

Hi,

Have you maintained the same settings for exchange rate gain/loss account/vendor recon.account?

Regards,

Mukthar

[Former Member]

Hi Mukthar,

Tax category maintained as per below:

Vendor recon. account -->  '-'(only input tax allowed).

Bank account  --> '*' all tax types allowed

Exchange rate gain/loss account --> tax code 'AA' (output tax)

Thanks.

Regards,

May

[former_member184580]

Hi May,

If needed maintain Substitution (OBBH) rule with the tax code for the line item transaction with GL account.

Regards,

Prasad

[Former Member]

HI May,

Yes, Both Julie and Prasad points are valid. Please explain the need to have Tax Code at the time of payment via F110.

Warm Regards

Vineet Lodha

[former_member184580]

Hi May,

Input tax and output tax levied on sales and purchases. That means on invoice not on payment. TDS (withholding tax) will be deducted from the payment. If it is withholding tax code maintain in vendor master.

Regards,

Prasad

[Former Member]

Hi May,

I'm wondering that why tax code should be in Payment document.

Because, based on the tax code, the tax amount is calculated and post into document.

But, tax amount in payment document, I don;t think it has.

Regards,

Julie