You create an Out-of-Pocket Expense Report and you notice that a Tax amount is calculate but no Journal Entry is made for this Tax amount.
SAP Business ByDesign
Reproducing the Issue
- Go to the Travel and Expense work centre.
- Go to the Expense Reports view.
- Show All Expense Reports.
- Search for Expense report ID: XX (XX stands for the Expense Report ID).
- Select View All.
- Select the Expenses tab.
The Expense Type is Paid By Company. The Tax Code is: Domestic Purchase of goods, standard rate, fully deductible.
- Select Document Flow tab and select the journal entry icon.
Only the Net Amount is posted. No posting is made for the Tax Amount.
A posting is not made for the tax amount in the journal entry because the Expense Type is: Paid By Company.
- This is the standard system behaviour.
- A Paid By Company Journal posting is always with the Net Amount and does not include the Tax amount.
- VAT entries are posted in the General Ledger for expenses that are reimbursed to the employee.
- An expense not to be reimbursed (e.g. a paid by company expense) is not subject to VAT taxation. Hence a Taxation posting is not made in the journal posting.
This can be seen in:
- Go to the Business Configuration work centre.
- Go to the Implementation Project view.
- Go to the Open Activity List tab.
- Go to the Fine Tune chevron.
- Show All Activities.
- Find Activity: Expense Reporting.
- Edit Expense Type.
- Search for the relevant Expense Type.
Under the Definition tab, the Payment/Taxation is: Paid by Company (Taxation, No Payment)
2182674 - Expense Reports Containning Only Paid By Company Expenses Will not be Reimbursed to Employee
No Tax Posting on Expense Report, No Journal Entry for Expense Report, Paid by Company Expense Report. , KBA , AP-ERM-ER , Expense Report , Problem