Gross Up tax on sales/purchase

[Former Member]

Hi Experts,

I have a situation here that need your advice.

I have configure output tax for 5%.

In FB70, for customer amount I entered 1000.

Then for revenue item I entered *.

SAP will calculate my item as

Dt Customer 1000

Ct Rev 952.38

Ct Tax 47.62

However this is not the entry I want to achieve.

What I want to have is in FB70, for customer amount I entered 1000, Revenue item I put 1000 and entry I want is like below.

Dt Customer 1050

Ct Rev 1000

Ct Tax 50

I am aware that in "editing option" we can tick "Calculate Tax on net amount". But then although we tick it, we still have to calculate the customer amount manually or else the system will issue error.

Is there any way for my user not to calculate customer line item amount manually to include tax?

Thanks a lot

Edited by: Zul Hilmi Zulkifli on Jan 25, 2008 12:19 PM

[Former Member · Accepted solution]

hi,

If you enter the customer amount as 1000,the system will not revise this to 1050.You have to enter 1050;the system will post as under:

Dr customer 1050

Cr Sales 1000

Cr Tax 50.

To do this,enter * against the GL Account - sales A/c.The system will calculate the Tax and post the above entries.

Regards.

Ramesh

[Former Member · Accepted solution]

Thank you Ramesh,

I am aware of this option. But the requirement is to have the customer line item grossed up to 1050 without the have to calculate 5% from revenue item.

Is there any setting can be done in the tax code so that system will gross up customer line item?

Thanks

[Former Member]

Hi Experts

Any suggestion here??

Thanx