You are checking the Supplier Invoice Journal Entry and wonder why the Tax Type(Eg: GST) is creating a Separate Tax line in the Journal Entry rather than being part of the Acquisition costs.
SAP Business Bydesign
Reproducing the Issue
Go to the Supplier Invoicing work center.
- Go to Invoices and Credit Memos View.
- Search the Supplier Invoice Document Id YY(represents Supplier Invoice ID) and go to the Document Flow
- Open the Journal entry for the posted Supplier Invoice and check the entries.
You observe there are 3 entries. One hitting the payable GL, 2nd line to the fixed asset ledger creating Fixed Asset: XX(represents Fixed Asset Id) and the third line with the Tax amount.
The Supplier Invoice ID YY uses tax code/tax event and the deductibility is defined as 1 - Fully Deductible (see in Business Configuration work center, Activity: Tax on Goods and Services - Tax Codes - filter for country).
Now, the duductibility rate also has to be maintained under the Activity Tax Settings for Purchasing. If there's no value maintained here at all, it will be taken as 0. If this is maintained as 100, then this results in Tax Type creating separate tax line in the Journal Entry, rather than being part of the acquisition cost.
Steps to maintain Deductibility Rate in %.
Go to the Business configuration work center.
- Go to the Overview and search for the Activity: Tax Settings for Purchasing.
- Click on Change Immediately.
- Filter for the Country and maintain the "Deductibility Rate in %"
You can set the validity date and the deductibility rate in percent for the available deductibility types. The deductibility rate of 100% corresponds to fully deductible and 0% corresponds to not deductible.
Asset - acquisition cost, Singapore, individual material,supplier invoice , KBA , SRD-FIN-GL , General Ledger , Problem