VAT code assignment to an accounting account on SAP Business BY DESIGN

[y_dasilveira01]

I am looking for since yesterday but I can not find how to assign a VAT code to an account. I did this:

- I created the VAT account

- I created the account determination group (ADG) for the tax

- I assigned this ADG to the wanted accounting account

And now, I would like to know how can I associate this ADG with given tax type? I see that I can associate it with a tax event (eg national sales), but the problem is that in national sale tax event, we can have for example:

- 20% settlements that fall on account 44571

- 10% settlements that fall on a 44572

- 5.5% settlements that fall on a 44573

And I do not see how to do this kind of setting in SAP Business By Design would you have an idea please?

Thank you in advance for your help

[former_member618236]

Hi,

I am adding myself to this question and answers, because I also have an issue in understanding VAT codes in SAP Business ByDesign.

My understanding, which is not based on any facts, that the VAT code defines two things (this may be country specific and in Finland the requirement is like this, the resolution in ByD I don´t know, yet)

When posting any journal in any process, resulting in an accounting document the VAT code should in my case

1. Direct the posting to the correct GL account. Whatever the acount is may be how you want it, but for reporting, at least in Finland, you empty all VAT for sales and VAT for purchases accounts and record the net VAT payable or receivable to a so called VAT main account.

2. Direct the VAT reporting to Finnish local Authorities report and based on that reporty they give the company the payables or receivables definitions, when to pay what amount or when you receive money.

I leave my comment open for SAP, just defining my customer requirement now and this will be helpful for all future implementations in Finland, as Finland is now only a "pre-localized country".

Br,

Marina

[marlene_katzschner]

Hi Yvemelle
one of the main concepts of ByDesign is to avoid blowing up the chart of account for "reporting G/L Accounts".

Could you please check in Tax Management the reports for Tax. Here you can drill down to the various tax codes and you can for sure find as well the information your client is requesting. If not - describe please, what is the exact use case for splitting the tax into the different rates. Then it would help to define a potential workaround

Best regards
Marlene

[y_dasilveira01]

Hello,

many thanks for your return.

Actually, I already did all of this steps, but this does not solve my problem.

Indeed, I do not see how to assign the ADG of tax event to product in order to be sure that all the sales released for this category of products will go correctly to the tax general ledger account wanted.

For example, we sell product with 5% of tax, instead of using account 445760 for tax account for all types of taxation.

We would like to separet the tax account. So we want to be able to define another tax account (for example: 445761) for sales with product tax on 5,5% and another tax account for sales with 20%

Regards,

Yvemelle da SILVEIRA

[HarshalVakil]

Hello,

Please check the activity : Account Determination for Tax Events --> to assign the Account determination group to tax events.

Tax on goods and service -> Define tax code -> to check the mapping of tax code with tax event

To create new Account determination groups and assign GL account to ADG

Chart of Accounts: Charts of Accounts, Financial Reporting Structures, Account Determination I hope this will answer to your concerns.
Regards,
Harshal