Posting of expense tax to inventory at receipt

To comply with the accounting requirement to have the most accurate inventory value (actual costing) possible, the expense tax can be posted to inventory or WIP when the goods are received in LN.

To enable this functionality, select the new At Receipt check box in the Consume Expense Tax in Inventory / WIP group box of the ACP Parameters (tfacp0100m000) session. The existing North American Expense Tax parameter has been renamed to At Invoice Approval and has been placed in the same group box.

When an item with an expense tax code is received, the financial company of the purchase order’s purchase office is used to determine the applicable expense tax parameter.

Now, if the At Receipt check box is selected, the net amount of the receipt is posted, and the expense tax amount. This is done by using the same integration document type (IDT) Purchase order/Receipt as the normal receipt transaction.

The Tax Indicator integration element has been added to distinguish between the net amount and the expense tax amount. If required, this indicator can be used to map expense tax transactions to different ledger accounts or dimensions. This new integration element is set to Not Applicable for normal (net) purchase order and receipt transactions and to Expense for expense tax transactions.

The expense tax amount is calculated from the receipt transaction amount multiplied by the applicable expense tax percentage. In the event of a variance between the calculated expense tax posted at receipt and the actual invoiced expense tax, this variance is posted at invoice approval through the existing Purchase Order/Price Variance IDT.

Expense tax handling at receipt has been implemented in these areas:

  • Purchase order receipts
  • Purchase schedule receipts
  • Supplier stage payments
  • Landed costs on receipts
  • Additional cost transactions
  • Cost to be specified
  • Cost invoices in Financials
  • Freight shipments
  • Freight order clusters
  • All intercompany trade scenarios

For freight shipments and freight order clusters, expense tax at invoice approval can now also be handled.