ERP 2.50:Configuration Manual/Tax Payment

Below described steps are the steps end-user should follow in order to setup Tax Register Types which will be later used for Tax Payment:

Tax Register Types setup

• GL item creation at the application path: Financial Management // Accounting // Setup // GL Item, as described below:
  • GL Item name: “Tax Payment”
  • We could set it up as “Enable in Cash” in case tax payment is paid in cash.
  • A GL debit and a GL credit account should be entered in the Accounting tab, by example (46500)

• Tax Register type creation at the application path: Financial Management // Receivables & Payables // Setup // Tax Register Type // Header, as described below:
  • Create a new record
  • Register name: Purchase Tax
  • GL item : Tax Payment
  • Navigate to Lines and create a new record as described below:
    • Tax: select the “Purchase Taxes” to take into account by example: “Purchase VAT 19%”
    • Document type: select the “Purchase document” to take into account by example: AP Invoice.
  • Save the record
  • Go back to header and create a new record for “Sales Tax and Sales Transactions”
  • Register name: Sales Tax
  • GL Item: Tax Payment
  • Select the flag: Sales Transactions
  • Navigate to Lines and create a new record as described below:
    • Tax: select the “Sales Taxes” to take into account by example: “Sales VAT 19%”
    • Document type: select the “Sales document” to take into account by example: AR Invoice
  • Save the record

Tax Payment

• Navigate to: Financial Management // Receivables & Payables // Transactions // Tax Payment// Header
  • Create a new record
  • Name = Tax Payment year 2010
  • Accounting Schema = select an Accounting Schema
  • BP = select a BP which must be the “tax authority”
    • Note= the important thing here is: this BP should be both a customer and a vendor because we could pay to the tax authority or the other way around, with a Payment Method and a Financial Account setup by default for both at the “Customer sub tab” and “Vendor sub tab” in the Business Partner window.)
  • Stating date = 01/01/2010, by example
  • Ending date = 31/12/2010, by example
  • We could set as yes the flag “Generate Payment” in that case the Tax Payment will be processed and besides the payment generated.
  • Then we run the process “Create VAT Registers” and then OK.
  • We could then navigate to “Tax Register Header” tab and verify there are 2 transactions with a value:
    • Sales Tax for a total amount of 13.899,79 by example
    • Purchase Tax for a total amount of 10.431,52 by example
    • Above means we should pay to the tax authorities.
  • Go back to Header and Process the tax payment.

As a result a Journal Entry is generated we can navigate to if we press the link “Journal Entry”

Posting will look as described below:

VAT payable (Sales tax) 13.899,79 DEBIT
VAT deductible (Purchase tax) 10.431,27 (CREDIT)
Account (46500) Tax Payment 3.468,27 (CREDIT)

Later on we should post the payment:

Account (46500) 3.468,27 (DEBIT)
Bank (572000) 3.468,27 (CREDIT)