Taxes on Sales/ Purchases – Configuration

SAP S/4HANA Finance & Controlling - Configuration & End User | Udemy Business

1. Menu path: Display IMG-> Financial Accounting-> Financial Accounting Global Settings-> Tax
on Sales/Purchases-> Basic Settings:
- Check Calculation procedure – Tcode: OBYZ
- Assign Country to Calculation procedure – Tcode: OBBG
- Check and change settings for Tax processing – Tcode: OBCN

Tax calculation procedure - tax calculation procedure, together with the tax codes are used in calculating
the amount of tax.

So first you have to check, which is the tax procedure provided by SAP according to your country. SAP
recommends not to change the standard tax procedure configuration. If you want to change the
procedure, then you should create your own tax procedure by clicking on new entries, or you can also
copy the standard template and then make and make changes. You can add condition types.

Condition types in tax calculation procedure represents different calculation activities or tax pricing.

Account keys identify different types of G/L account where the posting needs to be done by per
condition type.

When you double click on one condition type you can see all the fields which are configured. The most
important thing here is the Access sequence which is assigned to the condition type. This is a search
strategy that the system uses to find valid data for a particular condition type. It determines the
sequence in which the system searches for data.

2. Menu path: Display IMG-> Financial Accounting-> Financial Accounting Global Settings-> Tax
on Sales/Purchases-> Calculation:
- Define tax codes for Sales and Purchases – Tcode: FTXP
- Assign Company code to Document date for Tax determination – Tcode: OBCK
- Specify Base amount- Tcode: OB69

3. Menu path: Display IMG-> Financial Accounting-> Financial Accounting Global Settings-> Tax on
Sales/Purchases-> Posting:
- Define Tax accounts – Tcode: OB40

Output tax – Liability. Tax on customer invoices. Number range: 20000-29999.

Example:
GL Acct: 220000
GL Acct type: Balance sheet accounts
Account Group: General GL accounts
Short text: Output tax- 20% Long: Output VAT Tax – 20%
 Group Account Number: 122100 Income tax in the search box (Income tax receivables 122100,
Current Income tax liabilities 213000)
Tax Category: > Output Tax account
Open Item Management: check
Field status group: G001
Post Automatically Only: check

Input Tax- Standard Input tax V1 – 20%. – Asset. Number range: 10000-19999
Example:
GL Acct: 120000
GL Acct type: Balance sheet accounts
Account Group: General GL accounts
Short text: Input tax GL Long: Input tax GL
Group Account Number: 721000 / Tax in the search box (Income tax 721000)
Tax Category:< Input Tax account
Open Item Management: check
Field status group: G001
Post Automatically Only: check.

4. Classify Tax GL Accounts for Document Splitting

Menu path: Display IMG-> General Ledger Accounting-> Business Transactions -> Document
Splitting -> Classify GL Accounts for Document Splitting

- Assign Output GL Tax

Acct from: 22000
Acct to: We assign the full range starting from 22 and fill with 9 – 229999
Cat.: 05100 – Taxes on Sales/Purchases
- Assign Input Tax
Acct from: 12000
Acct to: We assign the full range starting from 12 and fill with 9 – 129999
Cat.: 05100 – Taxes on Sales/Purchases (same cat.)

5. Updating Purchase and Sales GL Accounts with relevant Tax categories

- Select your Purchase account in FS00 – GL 500000
Tax category: - Only Input Tax allowed.
- Select the Sales account – GL 600000 Revenue Account
Tax category: + Only Output Tax allowed.

6. Assign Tax codes for Non-Taxable Transactions

Menu path: Display IMG-> Financial Accounting-> Financial Accounting Global Settings-> Tax on
Sales/Purchases-> Posting-> Assign Tax Codes for Non-Taxable Transactions

Search your company code. V0 Input Tax, A0 Output Tax

7. Entry with codes
- Customer invoice - Tcode FB70

Reference: Output tax, A1 20%

- Customer invoice - Tcode FB60

Reference: Input tax, V1