Skip to Content

Hello everyone,

just to share one detail on the non-deductible tax code BL (“Purchases with GST incurred but not claimable (Disallowance of Input Tax)”). We had two solutions on the able:

  1. Configuring as a genuine non-deductible account.
  2. Setup as a deductible tax, but to an expense account.

Setup for #1 is to adjust the tax procedure and adding a step with condition type NLXN and account key NAV. This will have two consecutive effects: it will create an additional line for tax rate entry in the tax code configuration (T-Code FTXP), which in turn will be shown as a non-deductible tax amount in the tax report, including the one for GST-03.

/wp-content/uploads/2015/03/2015_03_25_141454_671776.png

Unbenannt.png

The downside is that the G/L account assignment for account key NAV is not tax code-dependent but global across the entire Chart of Accounts. That is, all company codes sharing this Chart of Accounts will have to use the very same G/L account for non-deductible input taxes.

In our case, this was a constraint we could not cope with. We therefore went for a tax code configuration for the BL tax code through account key VST and assigned a P&L account. Postings to this account will be excluded (=not deducted) from the input/output tax clearance.

I hope you find this helpful.

Best Regards,

Christoph

To report this post you need to login first.

Be the first to leave a comment

You must be Logged on to comment or reply to a post.

Leave a Reply