VAT UAE and KSA: SAP note implementation for Import Process and Tax Line Items
After the VAT law in UAE materialized. Import process and item wise tax was needed to implement in SAP, and for that, SAP mentioned few notes. During implementation of those notes, we started getting errors and dumps as some notes that were required and not automatically downloaded as dependent notes.
Hence, I started the search of missing items and came up with the all dependent notes and sequence of implementation that will help in rather smooth process.
NOTE: In this blog, I have only mentioned technical part; functional configurations are also required. Please read all attachment mentioned in SAP notes and apply those functional configurations to get the desired result.
My SAP System Versions:
Mostly the below process will fit all SAP ECC versions, as VAT related SAP Notes are released for UAE and KSA localization. Despite that, I have mentioned my current system versions for your information.
SAP_BASIS: Release 7.40, Service Pack 13
SAP_APPL: Release 617, Service Pack 11
SAP_FIN: Release 617, Service Pack 11
SAP_ABA: Release 740, Service Pack 13
Custom Import Process
As per UAE and KSA, in custom invoices VAT should be calculated on assessable value (that is defined by custom authority) instead of delivery price.
Example: If vendor has shipped an item of value 100, the same item has been be valuated as 120 by the custom authority. In this case VAT should be calculated on 120 and not on 100.
Notes suggested by SAP are 2583751, 2581369.
When you implement these notes, many subsequent notes will automatically download.
However, some dependent notes have to be implemented separately with several manual activities, requiring around 50 to 60 access keys.
Following table shows dependent notes for the above mentioned two SAP notes, along with manual activities required pre or post configuration.
Please follow the sequence column for implementation sequence.
1. When implementing post-manual activities for note 2419214- BAdI definition TAX_CONDITIONS gives error that it for sap internal user only. Ignore this, as this does not have any impact on our target.
2. In manual configuration of note 2581369, to implement routine as mentioned in attachment “2581369_Imports_VAT_Customizations and DDIC”, following is the process
T-Code: VOFM -> Formulas -> Condition Base Value -> add routine number and description and create by double click.
Inside this copy the code provided in note. In our case we did not required the original item value in MIGO for tax, we wanted tax to be calculated on only assessable value. Hence for that we can make the return variable as “ex_drseg-customs_val.”
After writing code, activate the routine while in screen VOFM -> Formulas -> Condition Base Value.
Then run report “RV80HGEN” to make the routine work in MIGO. (This report needs to run in all systems independently)
Enabling Posting of tax line item level.
In UAE, after the introduction of VAT, business are required to provide tax amounts for each material and G/L item of accounting document, and as per current process tax is clubbed in table BSET.
Note 2575538 is mentioned by SAP for this purpose. Following are the dependent notes with sequence number for implementation.
NOTE: This is irreversible once you activate, as described by SAP.
During invoice posting with advance clearing following error appears
“TAXPS cannot be determined in non-tax items”
For resolution, please apply SAP Note: 2491818