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Hi Friends,
This is from SAP help doc:
You post a vendor invoice of 1,000 USD to the vendor account with tax code U1. The invoice amount does not contain taxes. The use tax rate is 7 percent. You make the offsetting entry with amount entry * and Calculate taxes to the account Payables. The document overview then looks as follows:
Document overview
PK Account Debit Credit
31 Vendor $1,000
40 Expense $1,070
50 154010 A/P Use Tax State $60.00
50 154020 A/P Use Tax State $10.00
Although the invoice amount did not contain any tax, the system determined the use tax by means of the tax code and posted it to the corresponding tax accounts. At the same time an offsetting entry increased by the amount of the use tax was posted to the expense account.
* end of SAP help
I have set up use tax (same 7%)but not getting this behavior - Same entry but different amount.
When I enter $1000 in the invoice field, * in amount field for expense account , the system treats 1000 as 93% calculates total cost for expenses as 1000/0.93 = 1075.27.
75.27 is treated as tax.
I tried the net setting and I get the error 'balance not equal to zero'.
If I change the tax code settings for U1 as
condition for input tax 7+
condition for use tax 7-
Then the tax calculation is 70 but the entries are
AP Cr 1000
Exp Dr 1000
Input tax a/c Dr 70
Use tax a/c Cr 70
Can some one help me on this?
Sridhar
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