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Former Member
Apr 21, 2009 at 06:54 AM

How to reduce Tax Burden from Project's Budget

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Dear All,

We hve internal projects wherein we assign some annual budget to WBS elements. However while procurement activity there are several components which are taxable (Direct & indirect). The tax amount is getting loaded on Budget when creating a PO and Budget exceeding error pops up.

These taxes being recoverable later on from Government we dont want them to be borne on budget at the time of PO creation. To overcome the Problem we have created a "Z" condition type. This condition type is a -ve & manual. Hence Whatever is the total amount of these recoverable taxes is calucalted manually & updated in system system at Item level in PO. However this is not reducing the burden of taxes on Budget.

Just for information no Accounting key & henc the GL is assigned for this condtion type.

Please guide If any thing else needs to be done to avoid this problem. Or any other way to resolve the issue.

Regards,