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Taxes in down payments recieved and paid

Q1: I receive the down payment (prepayment) from customer and SAP generates posting

Dr   Bank 118
Cr   Customer Down Payment  100
Cr   Output VAT 18

 

Why does system behaves itself wrong way? It should be

Dr   Bank 118
Cr   Customer Down Payment 118
Cr   Output VAT 18
Dr   VAT from down payments received  18

A: System will use special GL account "VAT from down payments" when several prerequisites are met...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE.


Q2: I pay down payment (prepayment) to vendor and SAP generates posting

Cr   Bank 118
Dr   Vendor down payment  100
Dr   Input VAT 18

 

Why does system behaves itself wrong way? It should be

Cr   Bank 118
Dr   Vendor down payment 118
Dr   Input VAT 18
Cr   VAT from down payments paid  18

A: System will use special GL account "VAT from down payments" when several prerequisites are met...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE.



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