SAP Knowledge Base Article - Public

2674847 - There is no Entry for VAT Account in Journal Entry of Outgoing Check - Mexico

Symptom

When paying a supplier with an Outgoing Check, in the Journal Entry there is no entry for VAT account. However, when doing so with Outgoing Bank Transfer the entry for VAT account exists.

Environment

SAP Business ByDesign

Reproducing the Issue

  1. Go to Payment Management work center.
  2. Go to Payment Monitor view.
  3. Search for Outgoing Bank Transfer ABC (ABC represents an Outgoing Bank Transfer payment).
  4. Open it and click on View All.
  5. Go to Document Flow tab and open the Journal Entry of this payment.
  6. You can see an entry with VAT account.
  7. Follow the same steps until step 2, but search for an Outgoing Check.
  8. Now perform the same steps until steps 5.

You will not see any entry for VAT account.

Cause

In Mexico, all taxes are deferred until payment time.
Once payment is made, the deferred taxes are activated and posted to the tax accounts, as can be seen in case of the bank transfer.
However in case of outgoing check payments, the payment needs to be confirmed by a bank statement for the taxes to be activated.
Once the outgoing check is confirmed, a tax adjustment is to be created.
This will activate the taxes and move the taxes to the corresponding VAT accounts.

Resolution

Steps to create a Tax Adjustment:

  1. Tax Management work center.
  2. Periodic Tasks > VAT Return runs view.
  3. Create a new run with Run Type "Tax Adjustment" for the date of the Bank Statement.
  4. Set to active and schedule it.
  5. This run will create the Tax adjustment. The tax adjustment ID can be seen in the application log of the run.
  6. Now go to Tax Adjustments view and look for the tax adjustment created in above step.

The journal entry on this adjustment will show that the taxes have been moved to the corresponding VAT accounts.

 

Keywords

VAT account. IVA. Cheque Saliente. Transferencia Bancaria Saliente. Outgoing Bank Transfer. Payment. Pago a proveedor. Outgoing Check , KBA , pago a proveedor , cheque saliente , vat account , tax adjustment , SRD-FIN-TAX , Tax Management , How To

Product

SAP Business ByDesign all versions