VAT and Budgeting - Deductible VAT

[Former Member]

Hi all,

My customer needs to budget amounts with VAT (deductible+non deductible).

When availability control is performed, we need it to consider the deductible VAT as well.

Even if this is not the best bussiness practice, I need MM to recognize these taxes amounts as costs and to flow to PS as commitments or actuals and therefore, be subject to availability control.

Setting deductible tax as non-deductible in tax settings could be the easiest solution, but this does not meet my customer's requirement.

Would it be enough to solve this requirement not giving a separate G/L for the deductible VAT?

Can you share your thoughts on this matter with me?

Thanks so much

Martina

[Former Member · Accepted solution]

Hi,

I think you can discuss this with MM/FI guys.

Muzamil

[virendra_pal]

Hi Martina

The requirement as you have rightly pointed out is not a best practice scenario. However . . .

Try if you could use planned overhead via a costing sheet with overhead rate equal to the tax rate and never run the actual posting

Regards

Virendra

[Former Member]

Virendra,

unfortunately, no cost planning takes place in my business process... so I guess overhead is not an option.

On the other hand, if it is possible to work in MM with gross values, it should also be possible in PS, don´t you think?

Thanks

Martina