VAT Reconcilation

[jamieclode]

Hi,

We are currently using manual methods to carry out the VAT reconciliation.

Does anyone use S_ALR_87012357 to complete this or do people find this is not suitable to reconcile?

We have had issues were not all items are identified including manual adjustments.

Thanks

[thomas_vanaken2]

Hi Jaime,

Can you clarify what you exactly mean by VAT reconciliation. It would help.

Regards

Th.

[jamieclode]

Hi Thomas,

Completion of VAT return and reconciliation of VAT reclaimable and payable.

These need to be calculated and forms returned to HMRC with correct figures.

So I mean to reconcile VAT paid/received to what is reclaimed/paid in the return.

Cheers

[thomas_vanaken2]

Hi Jaime,

These are questions that require extensive responses, not possible to go into all details here but I will try to cover the basics:

• Completion of VAT form: Program RFUMSV00 that is called by the transaction you mention provide all the information's you need to complete your form (assuming configuration has been executed properly, master data correctly set up and transaction correctly entered in the system) but does not generate the legal form as requested by the tax authorities. Depending of the country of reporting and the type of form (paper or file), additional program may be available to issue the legal form but this generally requires additional customizing.
• Calculation and automatic posting of the payable VAT are supported by the system. Automatic posting of payable VAT is optional when executing the program and requires some customizing (you can post payable VAT either in a G/L account and pay manually or to a Vendor account and use automatic payment program to pay your VAT).  In my experience, most companies have payable VAT calculated by the report but post it manually as an extra step.
• A major point where most companies fail to get proper VAT reporting is that SAP VAT reporting is based on tax codes and not on G/L accounts. In order to have correct tax data (base amounts and tax amounts) in your system, you need to assign a properly customized tax code to each tax relevant line item, only then will be the tax data saved by the system in table BSET and later read by VAT reporting. The fact that postings look correct from a G/L point of view does not mean they are correct from a VAT point of view. There are generally no issue with invoices and credit memos but when it come to more specific transactions such as VAT transfers and documents with 100% for customs, these transactions are often incorrectly posted (from a VAT point of view) and do not show or show incorrectly on tax reporting. To verify that your document is correct from a VAT point of view, you can display the tax data (information button) when displaying an FI document.

Hope it help.

Good luck and best regards

Th.