The purpose is when we are using the various tax like Cenvat(Basic Excise Duty,education cess,higher education cess),vat.The system captures these tax values and consider them in the tax payment wizard.
For example
What we charge is Output Vat
What we pay our supplier is Input Vat
Output vat-Input vat=vat payable
This vat payable is calculated through tax payment wizard.
I you are using PLA(Personal Ledger account),then only the exceeding amount has to be paid to the govt.
In India, we have 2 types of VAT based Invoices, 1.Tax Invoice and 2.Retail Invoice,
now incase of input Retail invoice, the organisation will not be eligible to consider the tax amount as input tax. So how the SAP B1 will understand this logic while calculating tax payable via Tax Payment Wizard ?
In Tax Invoice,BP will be having TIN no.,it will be a local sale and Input can be taken.
Where as in retail invoice,we can deduct only CST in that case the value of the tax will be inventorized ie.,the tax amount will be added to the inventory.
So there should be any issue while running tax payment wizard.
Kindly confirm with your companys accounting professional regarding inventorizing the tax amount as i am not an accountant.And let us know the feedback.
As far B1 is concerned,the tax payment wizard does not have any option to classify whether the input has to be considered or not. I have also tested in demo database.
The accounts whcih are mapped to the Tax type will be considered in the tax payment wizard.
If this is a legal requirement,i kindly request you to raise a ticket in sap support portal and also post this thread in the product development collaboration forum.
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