Urgent: EAPS-VAT not updated in earmarked funds

[Former Member]

Hi,

We are implementing SAP Public Sector and when we posted some invoices with VAT the earmarked funds is only updated with the gl account related to costs.

The VAT item amount is not consuming the earmarked funds in FMZ3.

Example: Invoice of 1000 euros where 900 is for custs and 100 is for VAT. In FMZ3 only 900 is showned...

Where do i define in the SPRO that VAT itens are relevant for budget consuming ?

Thanks in advance.

[Former Member]

I believe VAT is entitled to refund. It should not be charged to an expense account. Instead, it is collected by a clearing account. That is why it does not impact earmarked fund. Please check how your FI posing look like. It should be: debit expense 900 and debit VAT account 100. 

[Former Member]

Hi,

That's is correct. The postings are:

Debit - P/L => 900

Debit - VAT => 100

Credit - Vendor => 1000

But our client is a public organism where the VAT amount should consume the earmarked fund.

Best Regards,

Bruno

[CesarCarreno]

It depends on the tax code used, however you should have a look at the note 1227207 - Tax update or profit and loss ajustment in FM, and implement the solution for your business scenario.

best regards

César

[Former Member]

Hi,

Cesar is right. Please read note 1227207 point 2. Also the link below:

http://help.sap.com/erp2005_ehp_06/helpdata/EN/da/568d77261511d28a430000e829fbbd/content.htm?framese...

In OFUP, you'll need to set tax as gross.