Manual Tax Adjustment

[Former Member]

Hello

I have a requirement for the user to manually post tax adjustments directly to the GL. We are trying to avoid giving the user a GL account specifically to be used for manual posting and instead have these items post to our regular Tax GL which allows automatic postings only. Does anyone have any suggestions on how we can get this posting to occur, preferably with tax codes? We have been looking at FB50 and FB01 as ways to possibly post the items.

Any thoughts are appreciated

Thanks

Savitha

[sampat_kumkar · Accepted solution]

Hi

It is tax adjustment entry you can post it manually with tax code (Tax code which is 0%) so that  it will reflect on tax report.

Regards

Sampath

[Former Member · Accepted solution]

Hi Sampath

I'm not clear on what you're suggesting. Which transaction would I use? And then what GL account would I have to use to post with a tax code? Would we require a new GL for manual postings in order to make this work?

More details are appreciated.

Thanks

[sampat_kumkar · Accepted solution]

Hi Savitha

I am suggesting for VAT GL adjustment entry.

Which transaction would I use?

FB50

And then what GL account would I have to use to post with a tax code?

VAT GLs - Transfer NET payable/receivable amount (Input /Output Tax code)

Would we require a new GL for manual postings in order to make this work?

What type of tax adjustment entry you are going to book : excise/service tax/VAT/withholding tax ?

Regards

Sampath

[Former Member · Accepted solution]

Thanks Sampath

We tested and will use FB50, include the tax code and have the system calculate the tax.

[former_member761219]

Hi,

For Account determination for withholding tax will help you to automaticaly update the Withholding tax amount pertain to a particular tax type/ code. when tax rate charges / tax code changes you need to changed the tax rate at tax code / tax code at vendors master records.
If you want to change the Account determination itself it is no necessary for the change of GL It is same like a Discuount account configuration. If you want Discount should post to one GL then you dont have to do more setting just simple assing one gl for Disoucnt a/c. Same way if you want to have more than one Discount you need to have Reason code for that & you need to assign GL for each reason code & while posting document you need to select a proper GL for the same.
Same way for withholding tax only one GL you can assign. We dont see any situation arises for changes of this GL. If you want to change the GL either you should change the vendor master data for tax code.

regards

[Marssel700]

Savitha,

It's recommended post tax only by VAT or TDS. If you need make adjusts it's better create a validation rule to permit user post only for a restrict groups of accounts.

regards

[former_member761219]

Hi Savitha,

Is it realy a client need?

Becuase if you use the GL for withholding tax code. the whole process needs to be done manually like there will be no Tax challan & calculating the tax process everything.

instead.

I am assuming that client required for different GL for a vendors suppose for withholding tax code may change for any reason.

e.g for "A" vendor  Professional tax applicable some time later for same Vendor Contract Tax code is applicable so. you need to change the settings

Regards.

Ravi