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)