General Ledger

S_ALR_87012357 - Tax Reporting

Business Process Procedure OverviewBackgroundSABIC has a statutory requirement to prepare and lodge tax returns in the various countries it conducts business. This document outlines and explains the necessary steps required in SAP, to meet Tax Compliant companies various GST/VAT related reporting requirements. Unless otherwise specified all settings illustrated and described below are for SAP R/3 4.6b, but this design is appropriate to all releases of SAP R/3 unless specifically stated otherwise.

Scenarioxx

PrerequisitesWhilst SAP functionality enables reporting of GST/VAT values based on pre-defined Tax groups, it requires all the Tax companies to be set up within a single SAP system. For details of the Tax codes that will be used for the various sales and purchase transactions for each country please refer to the IMG documentation.

This recording should be used as the base for each company’s GST/VAT reporting. It is important that the conventions, standards and code sets defined in this document are adhered to in order to maintain commonality and uniformity across SABIC.

This design/configuration document is intended to be used by people that have an understanding of the functionality and technical details of the SAP R/3 product and have experience in preparing Statutory Tax returns.

PROCEDURAL STEPS

Menu Path Accounting Financial Accounting General Ledger Reporting Tax Reports General Advance Return for Tax on Sales/Purchases S_ALR_87012357 - Advance Return for Tax on Sales/Purchases

Transaction Code S_ALR_87012357

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Perform the following steps of how to xxxx using the information below:

SAP Easy Menu

1. Double Click on S_ALR_87012357 - Advance Return for Tax on Sales/Purchases

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Advance Return for Tax on Sales/Purchases

2. Update the following required and optional fields:

Field Name Description ValuesCompany code Enter required company code

hereExample: 6000

Fiscal year Fiscal year number Example: 2002

Posting date Date that the business transaction occurred

Example: 01.10.2002

to Example: 31.10.2002

3. Click Further selections Button

Advance Return for Tax on Sales/Purchases

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4. Click Tax payable posting Button

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Advance Return for Tax on Sales/Purchases

5. Click <checkbox> Batch input session required to process postings through batch input session.

6. Update the following required and optional fields:

Field Name Description ValuesPostings document type

Choose document type for postings

Example: AB

Posting date Date that the business transaction occurred

Example: 31.10.2002

Posting period Fiscal month when the transaction posts to the General Ledger

Example: 10

Due date of the tax payable

Due dates Example: 15.11.2002

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Field Name Description ValuesSession name Enter your Batch Session

name.Example: RFUMSV00_OCT

This procedure will create a ‘Batch Input Session’ that needs to be processed in order to achieve the posting of the tax Payable/Receivable. Please note that direct postings to the Input and Output Tax Accounts will not be permitted as they will be set as ‘Auto Posting’ only, and all values representing Input or Output Taxes are to be processed via the Tax Screen of the document posting transactions.

7. Click Output tax Button.

Advance Return for Tax on Sales/Purchases

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8. Select the radio buttons as on the screen above.

9. Update the following required and optional fields:

Field Name Description ValuesOutput Line Items Program variant Example: /SABIC_OUT

Output Tax Total Program variant Example: /SABIC_OUTTO

Input Line Items Program variant Example: /SABIC_INPUT

Input Total Program variant Example: /SABIC_IN_TO

Balance per company code

Program variant Example: /SABIC_TOTAL

10. Click Execute Button to generate postings (batch input session).

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Tax on sls/purch. adv. ret.: Posting date 01.10.2002 to 31.10.2002

Above is an example of the Tax Report that is produced. The report will produce 4 pages:

Page 1 shows totals for Output tax by Tax Code.

Page 2 shows totals for Input tax by Tax Code.

Page 3 shows totals for each company code selected, by Tax Code.

Page 4 shows totals for all company codes selected, by Tax Code.

This report is extremely useful for detailed analysis of transactions pertaining to Tax and their values. As such many of the other parameters are useful for detailed

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reporting. Following is a description of the other parameters that may be useful.

Tip: You can print this report or download it as a local file. To create postings from the batch input session use transaction code SM35, select you session and process it.

Batch Input: Session Overview

11. Select session RFUMSV00_OCT.

12. Click Process Button to create postings

Process Session RFUMSV00_OCT

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13. Click <radio button> Display errors only .

14. Click Process Button to create postings.

Information

15. Click Session overview Button .

16. The message bar displays “Batch Processing Complete”

This procedure postings of the tax payable/Receivable. It also is necessary to clear the amounts in the Tax Clearing account to ensure that the tax payable/receivable to Accounts Payable or Accounts Receivable, is created in order to be paid via the automatic payment program (F110) or paid and cleared via the Incoming Payments (F-28) procedure.

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Although the above procedure calculates and posts the tax payable/receivable to the tax payable/receivable account, this account needs to be cleared and paid. The following accounts have been created:

119904 GST on Inputs119905 GST on Outputs119906 GST Pay/Rec Clearing

The tax payable/receivable Account is managed as ‘Open Item’ and as such a clearing procedure needs to occur in order to pay the values to the Statutory Authorities.

Therefore, the value of Tax to be paid needs to be identified. This can be achieved by an inquiry on the tax payable/receivable account in the general ledger by posting dates and uncleared items.

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