Tax on Sales/Purchases,

Sales Taxes, and Additional

Taxes
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The Accounts Receivable Accounting (FI-AR), Accounts Payable (FI-AP) and General Ledger (FI-
GL) components provide the following support for the calculation and posting of taxes:

 The tax amount can be determined upon request.

 The tax amount is checked by the system at document level.

 The tax accounts are automatically posted with the tax amount.

 If desired, tax can be adjusted automatically for cash discount postings and other deductions.

These transactions are controlled using the system configuration. In addition, you have to make the
following specifications:

 To determine the tax amount, the system calculates a base amount. How the individual base
amount is made up differs from country to country. You specify whether the base amount is to be
included for the tax calculation of the cash discount amount or not. You specify this for each
company code. See also Base Amount and Cash Discount.

 To enter the tax and determine it automatically, you require a tax code. For the tax code, you
specify the legally prescribed tax rate, among other things. See also Tax Codes.

 The tax amount is generally posted automatically. For the posting, you specify in the system the
tax accounts to which the individual taxes are to be posted. See also Automatic Tax Posting.

 In the master data of a G/L account, you can specify if the account is a tax account, and which
type of tax (input tax or output tax) can be posted to the account. For all other G/L accounts, you can
specify a tax rate and a tax type in the master record, or specify that the account is not relevant for
taxes. See also Specifications in G/L Accounts.

See also:

Tax on Sales/Purchases for Down Payments

Specifications for the Tax Type

Separate Exchange Rate for Translating Taxes into Foreign Currency

Reporting to the Tax Authority