Prerequisites for using financial postings

To post financial transactions, you must set up the prerequisites as follows:

1. In the India Localization Parameters (tccom9136m00l) session, select Indian Localizations Applicable check box. Define percentage of CENVAT credit in Cenvat Percentage for Capital Goods field.
2. In the Purchase Offices (tdpur0112m000) session define purchase office for each financial company.
3. The Business partner control accounts are defined in the Accounts by Financial BP Group (tfacp0110m100) session.
4. Maintain ledger accounts for each tax code separately. You must maintain the following important ledger accounts in the Posting Data for Singular Tax Codes (tfgld0171s000) session to post CENVAT credit amounts:
   • Purchase tax account
   • Purchase tax clearing account
   • Deferred account for Capital Goods
5. Create transaction type in the Transaction Types (tfgld0511m000) session, and transaction type series in the Transaction Type Series (tfgld0114m000) session.
6. Use the Accounts Payable module in the Financials to process the updated claimable taxes. Use the Process Order Tax Details (tfacp9235m00l) session, and click on the Generate Transactions button to generate ledger accounts for the selected finance company.

Constraints

The constraint in using financials for Indian taxation:

• You cannot enter aggregate tax codes or excise related tax codes manually in the Purchase Invoices (tfacp1110s000) session.