Hi,
We are implementing Concur and are using the SAP connector for replicating cost objects and posting expense reports in SAP Business ByDesign. We are having a couple of issues and I was wondering if other customers were experiencing the same and if anybody at SAP was able to comment.
1. Fuel for mileage
In the UK you can reclaim VAT on the fuel portion of any mileage expense paid to employees. ByDesign handles this very well in the Travel and Expense business scenario. The user inputs the total mileage travelled and when the Expense Report is posted in ByDesign a journal entry is created which includes a standard rated line item for the fuel VAT element and an Out of Scope line item for the remainder.
Concur also manages this scenario very well by only claiming VAT where a valid receipt for fuel has been uploaded by the claimant. However, it has a limitation in that it seems unable to split the mileage claim into multiple line items for the purpose of tax postings. ByDesign therefore does not allow the Expense Report to be posted when fetched from as Concur as a tax inconsistency always arises (the VAT on these expenses is never 20% of the standard rate).
See detailed example of below.
In this claim the user claims £11.70 in mileage. According to UK VAT rules for the vehicle class used £0.48 of this can be claimed back as input tax. ByDesign calculates this correctly and posts journal entry shown below recording the Recoverable Input Tax.
It also correctly identifies the Standard Rated element of the claim being the net value associated with £0.48 VAT. See the £2.38 posted as a Standard Rated supply. This is the fuel element of the mileage.
The remainder of the mileage expense is correctly posted as Out of Scope (this does not appear on VAT return).
If this expense report was created in Concur then only one line item would be created. It would be net expense £11.22 (8.84+2.38) and VAT of £0.48. The Standard Rated code would be applied and ByDesign would fail to post it on the basis that £0.48 is not 20% of £11.22. Any other Tax Code you change to (Zero, Reduced) will also create inconsistencies and prevent posting.
Concur solution currently is to set VAT on mileage to Zero so no VAT is calculated or posted. This, of course, means we would miss out on reclaimable VAT without calculating and posting mileage. One might expect that a line of business solution such as Concur would at least be able to reflect the functionality of ByDesign in integration scenarios.
In my view, the connector should be able to split the inbound Expense Report from Concur mileage into multiple VAT lines just as the Travel and Expense business scenario in ByDesign does.
Have any other customers found this issue? Any creative workarounds?
2. Tax Inconsistencies preventing posting of Expense Reports
This issue is related to the issue above but also causes problems in other scenarios.
ByDesign prevents the posting of retrieved Concur Expense Reports where VAT value is not 20% of net value and expense is logged as Standard Rated in Concur. In some cases it would be useful to post the report regardless of this inconsistency in the same way you can "Accept Tax Variance" in Supplier Invoice Entry when an Exception between input and calculated VAT arises.
Does anybody at SAP know why the decision has been taken to prevent posting of Expense Reports when these situations arise when in other areas of the system the same inconsistencies can be overriden?
- SAP Managed Tags:
Accepted Solutions (0)
Answers (4)
| User | Count |
|---|---|
| 99 | |
| 11 | |
| 11 | |
| 6 | |
| 6 | |
| 4 | |
| 4 | |
| 3 | |
| 3 | |
| 3 |
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.