Revenue recognition for Taxes.

[Former Member]

Dear Friends,

In our current scenario as per the statutory rules we need to recognize the Taxes along with the revenues. But SAP doesn't support for recognizing the taxes( I am referring the document SAP R/3 SD Revenue Recognition-Best Practice version 1.4 from of July 2005).

Please let me know is there any possibility for recognizing Taxes with revenues.

with regards,

[Lakshmipathi · Accepted solution]

For all statutory regulations, SAP has provided the relevant package.  In case, it is missing for the country you implement(ed) / support, you can very well raise OSS message.

G. Lakshmipathi

[Former Member · Accepted solution]

Dear Lakshmipathi,

We had already raised OSS message but initially SAP has replied Taxes can't be recognized with the revenue recognition.Discussions with SAP are still on. Earlier service tax was payable on payment basis, but now the same has been changed to billing basis from 01.07.2011 onwards.

Just wanted to know how the companies are managing for last 2years. Hope SAP must have released some solution. Please let me know if you have any idea on this. This is applicable for the Indian software service Industry.

with regards,

S Dayananda Murthy

[former_member205178]

Hi,

Which country are you referring to in this case ?

Does not make logical sense since Tax is not a revenue. I can understand Freight which is sometimes treated as a revenue.

Thanks.