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Gross amount inclusive of input tax

Dec 01, 2016 at 03:12 PM

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Former Member

Hello SAP Experts,

We have a user requirement where we need to enter the gross amount inclusive of Tax for services. In order to compute for the input tax withheld, we need to get the 13% withheld from the gross amount and vendor liability will be booked with the net amount. For instance;

Gross Amount (Services) - 1000 'Inclusive of 13% input tax to be withheld'

Calculation 1000/113% = 885

Withheld input tax = 115

Entry : Services Dr 1000

Input Tax Withheld Cr 115

Vendor Cr 885

Can someone please guide on this, will highly obliged.

Regards,

Rash Bharmal

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1 Answer

Amar Lal Lohano Dec 05, 2016 at 09:03 AM
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Dear Rash,

This type of entry is possible in FB60 (FI), but not in MIRO (MM). Becuase in MIRO tax is always charged on Gross amount i.e. in your case on 1000*13%=130; Total=1000+130=1130

Dr. Services 1000

Dr. Input Tax 130

Cr. Vendor 1130

Regards,

Amar Lal Lohano

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