This document discusses how to use SAP's deferred taxes function to handle VAT taxes in Mexico. It explains that taxes can be deferred until an invoice is paid. It provides instructions on configuring tax codes as deferred or target, entering vendor invoices and payments, and running the transfer deferred taxes program to clear the taxes to the correct period. Key parameters for the Mexico use case are described, including creating variants for input and output taxes and currency and options for partial payments.
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Handle VAT Taxes in Mexico Using SAP Deferred Taxes Function
1. Angel G. Reyes www.angelreyes.me
Deferred Taxes
How to use the SAP Deferred Taxes Function to handle VAT taxes in México
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Deferred Taxes
Normally, tax on sales and
purchases is reported when an
invoice is issued. The tax payable
amount is calculated as the balance
of the input and output taxes and
cleared in the subsequent period.
The tax for some transactions,
however, can only be deducted on
settlement. This is common in
France (output and input tax) and
Italy (input tax) and Mexico (output
and input tax) .
Usually, the transfer from deferred
tax account to operative tax account
it is done at month end closing.
WC
Invoice with Tax Code
Relevant and a Payment
XC
Target Tax Code
At some time
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GL Accounts pre-requisites
• Tax Category Indicators
– “<“ for input taxes
– “>” for output taxes
– “*” for 0% rate
• Open Item Management
enabled
• Line Item Display
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Tax Codes Configuration: Deferred & Target
• Configure target code on
the deferred one
• The target tax code it does
not need a target tax code
or any other special config
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Run Transfer Deferred Taxes (Tcode F.38)
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Explanation & Parameters
• This program automatically makes the
transfer posting for tax on
sales/purchases periodically.
• Customer or vendor data and the
respective clearing date are taken from
the offsetting items
• To make the transfer posting for partial
payments, the program creates a
corresponding clearing item.
• The program differentiates between
partial payments and credit memos. The
transfer posting for the tax amounts
proportionally allotted to credit memos is
only made when all affected invoice items
are cleared.
• Down payment clearings must be posted
using SAP standard transactions.
• Partial payments can only be posted for
one specific invoice at a time. If a partial
payment affects several invoices, a
separate document has to be posted for
each invoice.
• Each payment transaction has to be
posted separately, that is, several
incoming or outgoing payments cannot
be posted using just one document.
• One period must be specified for the
clearing date. The parameter "Open items
at key date" refers to the items in the
account for deferred tax.
• To be able to assign the tax amounts
properly, you have to post the invoice
documents according to SAP conventions.
If the program cannot process a
document correctly, it will list the
document in an error log.
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Applicable Parameters for México
• Creates two variants, one for input
taxes and another one for output
taxes
• Create one variant per currency
• If “Items with 0%” checkbox, is
selected, transactions are listed in
the report, but, nothing is transferred
• Set “always FB05”, with this option
partial payments are cleared using
“post with clearing” function
• Use “Doc.Hdr Text for Transfer Pstg”
to indicate a common text for
transfers, later on, it can be used as
search criteria
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Result of Deferred Taxes
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Transfer Document Created
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Scenario: Partial Payment
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Scenario: Partial Payment
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