SAP FICO - Challenges in

SAP AP Invoice Posting

Purpose of Tax Code

Tax Rate Tax GL Account

Tax Code

Tax Code stores both Tax GL

Account and Tax Rate .

Go to normal Invoice Accounting, choose the vendor and the invoice date & amount.

Invoice Posting with Input Tax

Fix the Tax Code you want by checking “Calculate Tax” and enter the line items i.e. Cost of Sales. It is not possible to enter input tax, so it won’t simulate.

Invoice Posting with Input Tax

To configure the GL Account for tax code , go to “fs00”, put in the GL account and click on “Change” and go to “Control Data” and choose “Tax Category”.

Invoice Posting with Input Tax

“Tax Category” allows or disallows any Tax postings to the GL Account. “-” means You are allowed to put Input Taxes to the GL Account.“+” means only output taxes are allowed. “*” means both are allowed

Invoice Posting with Input Tax

In this case, we are selecting “-”, so now we can enter the input tax for the GL Account and simulate then.

Invoice Posting with Input Tax

Go back to Invoice Posting screen, now when we try to put tax code and then simulate, it does not give error.

Invoice Posting with Input Tax

It is asking for “Tax Jurisdiction Key” which means we have to specify different tax rates for different states.

Invoice Posting with Input Tax

Now after simulation, it is showing the balance amount because it should include the tax portion. This tax code has got this amount set up in Tax Jurisdiction code.

Invoice Posting with Input Tax

From SPRO, go to “Define Tax Jurisdiction”, after entering work area for that particular country, we can see all Tax Jurisdiction Set up for that country.

Invoice Posting with Input Tax

TAXUSJ is assigned to country US.

Invoice Posting with Input Tax

Go here to check, what is the Tax percentage ( Calculation /Tax Procedure) assigned to a particular country?

Invoice Posting with Input Tax

By clicking here, we can check what is inside the Tax Procedure. All the Tax procedures are predefined by SAP.

Invoice Posting with Input Tax

Under Enterprise Structure, a country is assigned to the Country Code.

Invoice Posting with Input Tax

Invoice Posting with Input Tax

To know, What are the Tax Rates applicable to the different Tax Regions/Jurisdictions, From SPRO, go to Define Tax Code for Sales & Purchase, enter the respective Tax Jurisdiction for which you want to enter Tax Rate and enter the validity date.

This GL Account is used by the system to post the computed Tax amount.

Invoice Posting with Input Tax

From SPRO, go to Define Tax Accounts, The Account Key is used to determine the GL Account.

Invoice Posting with Input Tax

This GL Account is used by the system to post the computed Tax amount.

Invoice Posting with Input Tax

Instead of the system computing the tax itself, we can enter the tax details manually. Uncheck Calculate Tax, enter the Amount, Tax Amount, GL Account and Tax Jurisdiction Code and then post it.

Invoice Posting with Input Tax

After posting, the Tax Rate is computed.

Invoice Posting with Input Tax

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