I have seen on SCN that I’m not the only one wondering how to deal with the requirement of posting a reverse charge tax entry during the payment posting:
Not finding information issued by SAP directly if / how this requirement is covered, I opened a Customer Incident to gain clarification. In the meantime, I also prepared a functional specification which I will hand over to a developer in case no solution will be provided (on time).
Requirements definition for the user exit
- The user exit shall be called during the posting of the financial documents of the payment run
- The payment document shall be extended to debit input tax code TX and credit output tax code SR, the amounts balancing each other out.
- The calculation is based on the invoices which are grouped in a single payment; only tax code IS has to trigger this special treatment; this also means that if a payment is comprised of invoices where some match the given tax code and other(s) not, only the matching tax codes shall be considered. This configuration configuration shall be stored in a custom table.
- Concerning foreign currency: Valuation of the reverse charge tax lines will take the original local currency amounts
- A tax segment has to be created as well.
I prefer to store the tax codes in a configuration table, rather than hard-coding them in the user exit.
Tax codes TX and SR are set to 6 percent.
|Company Code||Invoice Tax Code||RC Input Tax Code||RC Output Tax Code|
Invoices to indicate that not necessarily all invoices being paid fall under the condition of the configuration table.
Sum of the invoices with tax code IS are 2850.00 USD / 6895.00 MYR.
|Company Code||Tax Code||Amount in doc. currency||Amount in local currency||FX rate|
|0001||IS||1500.00 USD||5020.00 MYR||0.2988|
|0001||IB||600.00 USD||2000.00 MYR||0.3000|
|0001||IS||750.00 USD||1875.00 MYR||0.4000|
|2850.00 USD||8895.00 MYR|
Expected posting and calculation
|Company Code||Account||Amount in doc. currency||Amount in local currency||Tax code|
|0001||(Vendor)||2850.00 USD||8895.00 MYR|
|0001||(Cash)||-2850.00 USD||-8142.86 MYR|
|0001||(FX diff.)||0.00 USD||-752.14 MYR|
|0001||(Input Tax)||135.00 USD||413.70 MYR||TX|
|0001||(Output Tax)||-135.00 USD||-413.70 MYR||SR|
|Account||Tax amount||Base amount||Tax code|
|(Input tax)||413.70 MYR||6895.00 MYR||TX|
|(Output tax)||-413.70 MYR||-6895.00 MYR||SR|
My questions to the readers
- Have you already received an answer from SAP if / by when a general solution can be expected?
- Do you agree with my understanding of the requirement?
- What do you think of the approach for this functional specification for a user exit? Would you approach the requirement differently, e.g. with a separate posting?
I am looking forward to your comments.