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UK: VAT delivery date in previous period than Sales Invoice

Hi,

For a specific client of mine in the UK, we would require the ability to report on VAT on the date of the delivery of goods and/or services, which would not necessarily be in the same period as the Sales Invoice date.

A little illustration:

1. Company A delivers goods and/or services to company B in period X

2. A billing proposal is sent to company B, who should agree on the amount to be billed.

3. Company B agrees (or disagrees and makes another proposal, which will occur in most cases) on the amount to be billed in period Y (period X has been closed)

4. Company A creates the Sales Invoice in period Y, referring to the goods/services delivered in period X.

5. However, HMRC requires to report on the VAT within the period of the delivery of the goods and/or services, thus in this case period X. However, as period X has been closed, company A has only the ability to post the sales invoice in period Y.

Is there any way to be able to post a Sales Invoice within period Y, but reporting the VAT in previous period X?

I can't imagine my client is the only company struggling with this. They don't want to create the Sales Invoice in the same period of the delivery, as this will lead to too many corrections afterwards and a messy and incorrect VAT reporting.

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1 Answer

  • Oct 16, 2015 at 09:02 PM

    Hi Tom,

    In SD taxes are generally driven by service rendered date in the header of sales order. In FI there is a field called Tax reporting date in BKPF –VATDATE. In standard VAT reports such as S_ALR_87012357 there is Tax Reporting Date available in Dynamic selections. It may be helpful in your case. Here is what help for this field says:

    Tax Reporting Date

    Date on which the tax on sales and purchases is due, or the date on which that tax must be reported to the tax authority.

    The tax reporting date can be identical to the posting date or the document date; you also can define your own rules to determine the date.

    Use

    Tax Reporting

    The tax reporting date is used in tax reporting primarily as a selection criterion, in addition to the posting date or document date.

    The tax reporting date is contained as a selection criterion in the logical database BRF.

    The field is available by default in the selection screens of several programs (for example, RFUMSV00, RFUMSV10, RDASLM00 , RFASLD02, RFASLD20). In the other report programs based on logical database BRF, the selection screens do not contain the field by default, but you can choose it from the custom selections.

    Exchange Rate Determination in Currency Translation of the Tax Amount

    You also can use the tax reporting date to determine the exchange rate when performing currency translation of the tax amount. To do this, in Customizing for Tax on Sales/Purchases under Change Foreign Currency Translation choose the option Determine exchange rate based on tax reporting date. Even if you have selected this option, you can change the reporting date in the document for reporting purposes at a later date. The tax amount is not recalculated again if you do this.

    More Information

    For more information, see SAP Note 1232484 and the related notes.

    Dependencies

    The tax reporting date is a field in the document header (table BKPF) and therefore applies to the entire document.

    To be able to use the field in documents, you need to activate the function Inventory-managing Customizing of Global Parameters for the company code. To do this, go to Enter Global Parameters and set Tax Reporting Date Active.

    If you have not selected Tax Reporting Date Active or the document is not tax relevant (does not contain a tax code), the system stores the tax reporting date with an initialized value.

    When entering documents, you can enter the tax reporting date in the dialog box for taxes. The BAdI Define and Check Tax Reporting Date (VATDATE_VALUES) proposes a value for this date. In the standard implementation, this is the posting date or, alternatively, the document date. You can change this date in the transaction for changing documents (FB02). But first you need to allow for the date to be changed in Customizing for Document Change Rules under Document Change Rules, Document Header. You can use the BAdI VATDATE_VALUES to verify the changes to the tax reporting date in the document.

    You can use the BAdI Determine Exchange Rate for Tax Items (BADI_TAX_EXCHANGE_RATE) to determine which exchange rate is relevant for tax line items in documents.

    Best regards,

    Anton

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