You notice that Tax Return ID AA automatically changed status to Completed after you release Tax Return ID BB (for the same Tax Authority). No payments are assigned to Tax Return ID AA. Under Tax payment ID XX, you cannot see any option to select Tax Return ID AA. However, the amount of Tax Return ID AA and Tax Return ID BB is being calculated together once you select Tax Return ID BB in Tax payment ID XX.
Reproducing the Issue
- Go to work center Tax Managment.
- Subview Tax Return --> VAT Returns.
- Show All Tax Returns.
- Search for Country XX.
Result: Tax Return ID AA is completed however it shows Tax Payment Status as requested.
- Tax Return ID BB is in status Reported (For same Country/Tax Authority/Company).
- Go to Tax Payment.
- Select relevant Tax Payment ID XX.
Result: Tax Payment ID XX, you can only select Tax Return ID BB and not Tax Return ID AA.
When you select Tax Return ID BB, the amount of Tax Return ID AA and BB is calculated together.
In Tax Management work center, Subview Tax Authority, under the effected Tax Authority you can see that in Company Tax Arrangements in Chevron Tax Return Arrangements, Carry Forward has been marked.
As per Help Document Tax Authorities Quick Guide:
The Carry Forward indicator is only relevant for certain countries, such as the US. Set this indicator if a receivable from the tax authority needs to be cleared in the subsequent period.
This means the moment a new Tax Return ID is released, the previous Tax Return ID is put in Status completed since the system assumes that the Tax payment will be carried forward into the next period.
- Under Tax Return Arrangements for the effected Tax Authority, deselect Carry forward.
- Reverse Tax Return ID BB (ensure that the Periods are Open before reversing).
Result: The moment you reverse Tax Return ID BB, Tax Return ID AA will go back to status Reported.
Now you may create a new Tax Return ID and this time it will no longer effect Tax Return ID AA. For each Tax Return an individual payment must be cleared once Carry Forward is deselected.
KBA , SRD-FIN-TAX , Tax Management , How To