In the SAP Business ByDesign system’s business configuration, you can fine-tune the Tax Return parameters for different SAP country/region versions in the activity called Tax Returns for Goods and Services.
In the past release version, we enabled the “Add Row” button for this activity for Summary Layout-based returns of countries France, Austria, United Kingdom, Denmark, Switzerland, Australia and Italy. This allows customers to add missing country-specific Summary Layout settings and also change the validity of records using the “Valid To” column.
Let us take an example of Australia where we will create a custom Tax Code for the Tax Rate Type: Special 1 using the activity Tax on Goods and Services. Then, we will create a Summary Layout mapping for the Periodic GST Return using the activity Tax Returns for Goods and Services.
Steps of configuration:
- Before posting the Invoice, we need to configure a new custom tax code in activity Tax on Goods and Services.
- Navigate to Business Configuration->Overview. Search for activity Tax on Goods and Services and click on Define Tax Codes.
- Add a new row for Australia, here I have created a custom Tax Code ZTC7 mapped to Tax Event 10-GST Non-Capital Purchase.
- Configure the Tax Type: GST, Tax Rate Type: 3-Special 1, Tax Deductibility 2- Not Deductible.
- Now, we should be able to post an Invoice with the custom Tax Code ZTC7.
- Since the Summary Layout Mapping maintenance for Australia is opened up, we can maintain new mapping entries. Navigate to Business Configuration->Overview. Search for activity Tax Returns for Goods and Services – Australia and click on Goods and Service Tax Return Australia.
- Select Tax Return Type: Periodic GST Return and Tax Event: 10-GST Non-Capital Purchase.
- We will map the Special 1 Tax Rate Type to Form Box G13.
- Add a new row with Tax Type: GST, Tax Rate Type: 3-Special 1, Due Category: 2-Receivable, Form Box: G13 – Purchases – input tax sales, Tax Amount Type: 0 – Tax Amount.
- For the reporting purpose, we will create a GST return to check how the values are reflecting in the Tax Boxes. Navigate to Tax Management ->New Tax Return Run.
- Open the GST Return created in the previous step by navigating to Tax Management->GST Returns. We can see that the Tax Amount value is reflecting against Tax Box G13 in accordance with the configuration maintained above (Refer to Step 3).
We have now learnt how to create a custom Tax Code for a specific Tax Rate Type and how to map it to a Summary Layout based return for reporting purpose.
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Follow the below pages for more information:
Tax on Goods and Services: Configuration Guide
Tax Returns for Goods and Services
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