2040973 - How to Process an Incoming Tax Return

You have received a refund of a Tax Return from the Tax Authority and wish to process the Tax Payment.

SAP Business ByDesign

1. Go to the Tax Management work center.
2. Go to the view of the concerned Tax Return, for example Sales and Use Tax Returns.
3. Open the relevant Tax Return. The Tax amount should be displayed without the minus sign, which means a Tax Receivable.

The Pay button is grayed out.

The Tax Authority issues your company a check when the Tax is receivable. In such cases, the check or Bank Transfer needs to be considered as a Tax Payment and be associated with one or more Tax Returns. This scenario of creating a Tax Due Payment based on a check or Bank Transfer that has already been initiated is an externally initiated Tax Due Payment, which means that the payment is created out of the Tax Management work center.

In order to process your Tax Receivable, you have to manually initiate the payment and then associate it with a Tax Return.

1. Go to the Payment Management work center.
2. Click Create New Incoming Check under Common Tasks.
3. Specify the payment amount and select the payer as the Tax Authority.
4. Post the payment. A Tax Payment is created as well as a task of type Review and Release Tax Payment.
5. Go to the Tax Management work center.
6. Go to the Tax Payments view.
7. Open the newly created Tax Payment and match the relevant items (the VAT Returns).
8. In case you do not see the relevant VAT Return to match then open the Value Help under Tax Return Arrangement ID and select a different Tax Return Arrangement ID XYZ (where XYZ is the relevant Tax Return Arrangement ID).
9. Fill out the required fields and press Post or Accept.

Alternatively to step 6, you can open the Review and Release Tax Payment task on the Work view.

Additionally, Tax Payments can also be created directly via Bank Statements. See the help documentation below.

SAP Business ByDesign Documentation: Tax Payments Quick Guide

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