Hello:
My company receives a monthly service during a year, and pays in advance for all the year receiving the relevant invoice from the vendor. Assuming that the tax percentage is 10% and that the annual amount is $120, the SAP Advance Payment operation generates the next open accounting document:
Vendor 108 Tax 12 Bank 120
Every month it is necessary to declare the service expense and to close $10 (120 / 12), and the accounting documents generated every month are:
Reporting the expense of the service:
Cost of service 9
Tax 1
Vendor 10
Closing part of the open item:
Vendor 10
Vendor 9
Tax 1
All is ok from the point of view of SAP, but audit people are criticizing the u201CTax accountu201D of the accounting ledger, it has u201Cmanyu201D debits and credits (as you can see above), they say that it should be registered only $12 in that account.
How can I avoid to register in the Tax account more than once and remove the audit observation?
Regards.
Edited by: Eduardo Gironas on Dec 8, 2011 3:03 PM