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    TAX SAles Purchase S4

    Uploaded by

    kalyan
    The document explains the configuration of taxes on sales and purchases in SAP S/4 HANA. It outlines 7 key steps: 1) Define the calculation procedure, 2) Assign countries to procedures, 3) Check tax processing settings, 4) Define tax codes, 5) Define tax accounts, 6) Create general ledger accounts for taxes, and 7) Review the accounting entries for purchases, sales, and tax payments. The configuration ensures taxes are accurately calculated and posted for transactions according to the defined tax codes, accounts, and procedures.

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    TAX SAles Purchase S4

    Uploaded by

    kalyan
    32 views10 pages
    The document explains the configuration of taxes on sales and purchases in SAP S/4 HANA. It outlines 7 key steps: 1) Define the calculation procedure, 2) Assign countries to procedures, 3) Check tax processing settings, 4) Define tax codes, 5) Define tax accounts, 6) Create general ledger accounts for taxes, and 7) Review the accounting entries for purchases, sales, and tax payments. The configuration ensures taxes are accurately calculated and posted for transactions according to the defined tax codes, accounts, and procedures.

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    The document explains the configuration of taxes on sales and purchases in SAP S/4 HANA. It outlines 7 key steps: 1) Define the calculation procedure, 2) Assign countries to procedures, 3) Check tax processing settings, 4) Define tax codes, 5) Define tax accounts, 6) Create general ledger accounts for taxes, and 7) Review the accounting entries for purchases, sales, and tax payments. The configuration ensures taxes are accurately calculated and posted for transactions according to the defined tax codes, accounts, and procedures.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    32 views10 pages

    TAX SAles Purchase S4

    Uploaded by

    kalyan
    The document explains the configuration of taxes on sales and purchases in SAP S/4 HANA. It outlines 7 key steps: 1) Define the calculation procedure, 2) Assign countries to procedures, 3) Check tax processing settings, 4) Define tax codes, 5) Define tax accounts, 6) Create general ledger accounts for taxes, and 7) Review the accounting entries for purchases, sales, and tax payments. The configuration ensures taxes are accurately calculated and posted for transactions according to the defined tax codes, accounts, and procedures.

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    © All Rights Reserved
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    TAX ON SALE/PURCHASE-S/4 HANA_1809

    Created By: ASHISH AGGARWAL


    Purpose:
    The purpose of this document to explain how system is configured with
    regards to taxes on sale/purchase transaction, along with general ledger
    creation, account determination and accounting treatment and various other
    facts.
    Note: The below mentioned set up/configuration are illustrative/example in
    nature.

    1. Define the calculation procedure


    In this step you create how tax would be calculated on sale/purchase
    transaction and how the posting will happen in system.

    Path: Financial Accounting----- Financial Accounting Global Settings-----


    Tax on Sales/Purchases----- Basic Settings----- Check Calculation
    Procedure

    1.1. Condition type


    Here you define various parameter/condition like input/output with
    class, type and category as shown below
    1.2. Procedure
    Here you define the calculation procedure for different condition type.

    2. Assign Country to Calculation Procedure


    Assign calculation procedure to country of your operation.
    Path: Financial Accounting----- Financial Accounting Global Settings----- Tax
    on Sales/Purchases----- Basic Settings----- Assign Country to Calculation
    Procedure
    Note: Calculation Procedure are not assigned to any specific company code.

    3. Check and Change Settings for Tax Processing


    Here you define the account key based on which posting happens in system
    and linked with calculation procedure in above steps.

    Path: Financial Accounting----- Financial Accounting Global Settings----- Tax


    on Sales/Purchases----- Basic Settings----- Check and Change Settings for Tax
    Processing

    4. Define Tax Codes for Sales and Purchases


    Here you define the various input/output tax codes along with rate.
    Path: Financial Accounting----- Financial Accounting Global Settings----- Tax
    on Sales/Purchases----- Calculation----- Define Tax Codes for Sales and
    Purchases
    4.1. Select the country

    4.2. Define tax code

    5. Define Tax account


    Here you determine the GL account for various input/output tax.
    Path: Financial Accounting----- Financial Accounting Global Settings-----
    Tax on Sales/Purchases----- Posting----- Define Tax Accounts

    5.1. Linking Posting key with account key.

    5.2. Linking chart of accounts with account key, tax codes and country

    5.3. Linking GL account with account key

    6. GL Account
    Create general ledger for input/output tax.
    T-code: FS00

    6.1. Output tax


    6.2. Input Tax
    7. Accounting entries
    7.1. On purchase
    Purchase Account DR
    Input Tax Account DR
    To Vendor Account CR

    7.2. On Sale
    Customer Account DR
    To Output Tax CR
    To Sale Account CR

    7.3. On payment of tax to government


    Output Account DR
    To Input Tax Account CR
    To Bank Account CR

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