2429101 - Tax Payment Allocates Amount to Tax Difference Account Instead of Sales Tax Advance Payment Account

SAP Knowledge Base Article - Public

2429101 - Tax Payment Allocates Amount to Tax Difference Account Instead of Sales Tax Advance Payment Account

Symptom

You have released VAT tax return A with a tax payable amount, e.g. -1000,00 LC. Later you schedule  and then release correction run B for the same period, resulting in a higher tax payable amount, e.g. -1500,00 LC.
After this you generate an external tax payment through allocating the total amount (-1500,00 LC) to the tax authority in the payment allocation.
The tax payment has automatically assigned the released correction run B.
In the Clearing Data section of the tax payment you notice, however, that the payment only considers the difference between tax return A and correction tax return B (here -500,00 LC) as Assigned Tax Returns' Amount.
The remaining amount (the tax amount of tax return A) appears as a Payment Difference Amount which is going to be allocated to the Tax Difference account as maintained in Tax Account Determination (Fine Tuning).  
You expected the total tax amount (here, of -1500,00 LC) to be considered as Assiged Tax Returns' Amount which would then be posted to the respective Sales Tax Advance Payment Account as maintained in Fine Tuning.

Reproducing the Issue

  1. In the Tax Management navigate to the the Tax Returns - VAT Returns view.
  2. Here, tax return with a payable tax amount, e.g. -1000,00 LC appears as well as a correction return B for the same period with a higher tax payable amount, e.g. -1500,00 LC.
  3. In the Tax Payments view of the Tax Management workcenter an externally initiated tax payment to pay the full tax amount appears.
  4. Open the Tax Payment.
  5. Here, in the  Payment Amount Details section you notice that the Assigned Tax Returns' Amount is only the difference between tax return A and correction return B (-500,00 LC).
  6. As as result, the payment difference has been posted to the Tax Difference account instead of the Sales Tax Advance Payment Account.

Cause

Note: This situation only occurs when a tax return is being automatically assigned to a tax payment. This happens when there is only one reported tax return available for payment.

As the tax payment is assigned to acorrection tax return B it is assumend that the original tax return A has already been paid. Hence, only the additional amount is being considered as Assigned Tax Return's Amount. The payment then suggestes to post the remaining amount (i.e. the amount of the original tax return A) as payment difference.

 

Resolution

If the Tax Payment has not been posted yet: Unmatch and Match the Tax Return again:

  1. Open the Tax Payment.
  2. In the Tax Payments section remove the selection from the Matched box and set it again.
  3. This will trigger the consideration of the full tax return amount as Assigned Tax Returns' Amount.

If the Tax Payment has already been posted: Reverse the Tax Payment:

  1. Open the Tax Payment and press Reverse.
  2. This will generate a new tax payment in status In Preparation.
  3. This time the tax return is not automatically matched.
  4. Select the Matched box.
  5. Automatically, the full tax return amount is considered as Assiged Tax Returns' Amount.

To prevent this situation:

If a tax return has not been paid yet it is recommended to reverse the tax return and create it again. The tax return Correction functionality is to be used once a tax return has already been paid but needs to be corrected due to further transactions in the period of the return period.

Keywords

KBA , AP-PAY , Payment Processing , How To

Product

SAP Business ByDesign all versions