Regarding Fringe Benefit Tax (FBT)

[Former Member]

Dear All,

Is there any consideration of FBT ( Fringe Benefit Tax) in SAP Business One.

In mean to say any addon of FBT just like TDS addon which is available.

How did other consultants taken care of FBT in their projects. Do Guide me. As my client is requiring it.

Regards

Hitesh Parsawala

[Former Member · Accepted solution]

Hi Hitesh,

You can use UDF at G/L level and mark the G/L which attarcts FBT.

Then you will be able to produce period wise G/L details for all the marked G/Ls.

Ultimately Journal entry has to be pass manually only.

Hope it helps.

Best regards,

Samir Gandhi

[Former Member · Accepted solution]

Samirbhai,

Apart from manual JE is there any way out that FBT is calcculated automatically.

Is there any addon for FBT like as TDS Addon. Do guide me.

Regards

Hitesh Parsawala

[Former Member · Accepted solution]

Hi

This is the question we posted to SAP regarding FBT:

Question

Iam using SBO 2005B PL:31. 
How to create FBT tax code and use it financial transactions. 
My current client has given no options for me. Without FBT he says, 
financials is not completed. 
I think creation of new tax code should help this issue. 
But provide me how to do all this. 
I am afraid whether this is missing functionality. 

Fringe Benefit Tax (FBT) is a tax levied on perquisites-or fringe 
benefits -provided by an employer to his employees, in addition to the 
cash salary or wages paid. Fringe Benefit Tax was introduced in India 
in the year 2005-2006. 

Fringe benefits shall be deemed to have been provided if the employer 
has incurred any expense or made any payment for the purposes of: 
(a) entertainment; 
(b) festival celebrations; 
(c) gifts; 
(d) use of club facilities; 
(e) provision of hospitality of every kind to any person whether by way 
of food and beverage or in any other manner, excluding food or 
beverages provided to the employees in the office or factory; 
(f) maintenance of guest house; 
(g) conference; 
(h) employee welfare; 
(i) use of health club, sports and similar facilities; 
(j) sales promotion, including publicity; 
(k) conveyance, tour and travel, including foreign travelexpenses; 
(l) hotel boarding and lodging; 
(m) repair, running and maintenance of motor cars; 
(n) repair, running and maintenance of aircraft; 
(o) consumption of fuel other than industrial fuel; 
(p) use of telephone; 
(q) scholarship to the children of the employees. 

The reply from SAP Support was

SBO doesn't support FBT,as we don#t have Payroll. FBT information is 
notcompleted unless we have Payroll and then we can develop some 
additional functionality to use Dimension for employees also. 

Presently during implementation can use Tax code/formulas for FBT and 
use some UDF's to capture details related to different kind of expenses. 

[Former Member]

Hi...,

The FBT is aslo like a tax,

Create FBT as tax code with proper percentage by tax code and tax formula creation.

and pass the JE with automatic tax code selection. than system will calculkte the FBT automatically...,

at preasent this is only the solution. Presemtly i am doing this one.

[Former Member]

Hi Hitesh,

Try This Solution.

I. For FBT Calculation create three User Defined Fields in the

u201CMenu Bar u2013 Tools u2013 User-Defined Fields u2013 Manage User Fieldsu201D, Master Data u2013 G/L Accounts

1. First Field u201CFBTu201D : Title: FBT, Description: Fringe Benefit Tax, Type:

Alphanumeric, Length: At-least 3, Structure: Regular, Check Box u201CSet Valid Values for Fieldu201D,

Values in First Row (Value: Yes, Description: Yes), Values in Second Row (Value: No, Description: No)

2. Second Field u201CFBT 1 u201D : Title: FBT 1 , Description: FBT%, Type: Units and Totals,

Structure: Percents

3. Third Field u201CFBT_Taxu201D : Title: FBT_Tax, Description: FBT Tax %, Type: Units and Totals,

Structure: Percents

II. Go to Financials u2013 Chart of Accounts, Go to Tool Bar u2013 Click u201CUser-Defined Fieldsu201D

III. Click on Account Type Expenditure and Mark the Accounts which Form part of FBT Calculation as

u201CYesu201D, Set the FBT Qualifying Percentage ex: 20% etc, Assign the FBT Tax Percentage ex: 33.99%.

Create a Query as under:

SELECT T0.AcctCode, T0.AcctName, T0.CurrTotal, T0.U_FBT, T0.U_FBT1, T0.U_FBT_Tax,

(T0.CurrTotal* T0.U_FBT1)0.01 as 'Qualifying Amount', (T0.CurrTotalT0.U_FBT1T0.U_FBT_Tax0.01)*0.01as

'FBT Amount' FROM [dbo].[OACT] T0 WHERE T0.U_FBT =[%0]

Give it the Name FBT Calculation and save.