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non recoverable tax

we have one transaction

Dr: expense-medical 105

Cr: bank 105

105 including 100+5%*100=105, 5% is VAT input tax, but not recoverable, since expense-medical is GL account with mandatory tax code field.

so when user using FB50, he need to select tax code P5(5%), input 100 into expense account, so how to configure tax code and let system auto calculate tax

but no tax payable line generated, 5% is not recoverable?

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3 Answers

  • Posted on Nov 13, 2012 at 03:14 PM

    Hi,

    In Transaction Code OBYZ you have to define an Condition Type for Vat Non-Deductible with account key NVV.

    Then in FTXP create a Tax code based on 5% non-deductible vat. Put 5 % in Non-Deductible Condition type for VAT

    Then at the time booking it will add to expense-medical account

    Regards

    Diptadhi

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  • Posted on Nov 13, 2012 at 03:25 PM

    Hi,

    If you are using Formula-Based Tax procedure, the tax code will work for mm & fi also. For condition-based tax procedure, create condition record using Tax classification in FV11 inrespect of Tax Code

    It will work in f-02 or fb50

    Regards

    Diptadhi

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  • Posted on Nov 13, 2012 at 07:16 PM

    Hi Rajendra, FTXP/OBQ3/OB40 AND FV11 are the transaction codes you can use for this purpose. Also, go through the below links which will give you a wonderful understanding of Taxes.

    http://scn.sap.com/thread/1758549

    http://wiki.sdn.sap.com/wiki/pages/viewpage.action?pageId=257757612&bc=true

    http://wiki.sdn.sap.com/wiki/pages/viewpage.action?pageId=53057&bc=true

    Regards,

    Sudhakar

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