Posting Data for Tax Codes (tfgld0171s000)

Use this session to define the ledger accounts and the default dimensions for tax codes of a specific country.

For each tax code, you can define the ledger accounts to which the various tax transactions must be posted. You can only define the ledger accounts that are relevant to the kind of tax of the tax code.

Mandatory accounts

If the tax code type is other than Normal, you must specify the following ledger accounts:

If the tax type is On Payments, you must specify the interim account to which the tax amount is posted when you create the order. For details, refer to Kinds of tax.
If the tax type is Shifted, you must specify the contra account for the reversal entry. For details, refer to Kinds of tax.

Optional accounts

You can post all other tax amounts on purchase-related transactions to the Purchase Tax account and all tax amounts on sales-related transactions to the Sales Tax account. However, if you want to post the tax amounts of specific transactions such as credit notes and the assignment of advance payments or receipts to specific accounts, you can enter the accounts in the corresponding fields.

Dimensions

If dimensions are linked to the tax ledger accounts, for invoices LN derives the dimensions from the financial business partner group control accounts. For journal vouchers, LN derives the dimensions from the ledger account of the journal.

If mandatory dimensions are linked to the tax accounts and no dimensions are defined for the transaction ledger account, LN uses the dimensions that you specify in the Posting Data for Tax Codes (tfgld0171s000) or the Posting Data for Multiple Tax Codes (tfgld0170s000) session.

Field Information

Country

The tax country of the tax code.

Tax Code

The tax code.

Kind of Tax

The kind of tax for which the tax code is defined. For details, refer to Kind of Tax

Purchase Tax

The ledger account to which tax on purchases is posted.

Purchase Tax on Credit Notes

The ledger account to which purchase tax on credit notes is posted.

To distinguish tax amounts on credit notes from other tax amounts on purchase transactions, enter a ledger account. By default, LN displays the Purchase Tax account in this field.

Purchase Tax on Payments (Interim)

The interim account for purchase tax amounts. If the tax type is On Payments, you must specify a ledger account.

Purchase Tax on Advance Payments

The ledger account for purchase tax amounts calculated on advance payments.

If you select the Calculate Tax on Advance Payments/Receipts check box in the CMG Parameters (tfcmg0100s000) session, LN posts the tax amounts to this ledger account when you create advance payments.

To distinguish tax amounts on advance payments from other tax amounts on purchase transactions, enter a ledger account.

Purchase Tax on Assignment of Advance Payments

The contra account for tax amounts on assigned advance payments.

LN creates a reversal posting of the tax amount on this account when you assign the advance payments to purchase invoices.

By default, LN displays the Purchase Tax on Advance Payments account in this field.

Shifted Purchase Tax

The contra account for shifted purchase tax.

VAT: Regular value added tax (VAT) on sales and purchases.

Note: For tax registration setup, this kind of tax also represents sales tax.
Stamp Tax: A kind of tax on trade notes.
Withholding Income Tax: Withholding tax that you must withhold from your suppliers' purchase invoices and pay directly to the collection office.
Withholding Social Contribution: Withholding social contributions on purchase invoices that you must withhold from your suppliers' purchase invoices and pay directly to the collection office.
Social Contribution (Company Expense): Social contributions (expense) that you can post as costs.
Exclude from Withholding: You can link tax codes of this kind of tax to purchase transactions that are not subject to withholding tax, but that you must report to the collection office for withholding tax and social contributions.
Tax Settlement: On the tax analysis reports, tax payments to the collection office are represented by this kind of tax code.
Not Applicable: None of the previous types apply. For example, for a group tax code the kind of tax is Not Applicable.

Social Contribution (Company Expense)

The ledger account for social contributions that you handle as costs.

If the Withholding Income Tax and Social Contribution check box in the Implemented Software Components (tccom0100s000) session is selected, you can specify a ledger account.

Accrued Stamp Tax Account

The ledger account to which the stamp tax costs must be posted. This must be a Profit and Loss account.

Tax Account for Bad Debt Relief in Purchase

The ledger account to which the Adjustments to Tax in Bad Debt Relief transactions are posted.

Note:

To manage the Bad Debt Relief as input tax, the Bad Debt Relief account can be populated with a Sales Tax account.

Description

The ledger account's description.

Tax Account for Bad Debt Recovery in Purchase

The ledger account to which the Adjustments to Tax in Bad Debt Recovery transactions are posted.

Description

The ledger account's description.

Sales Tax

The ledger account to which tax on sales invoices is posted.

Sales Tax on Credit Notes

The ledger account to which sales tax on credit notes is posted.

To distinguish tax amounts on credit notes from other tax amounts on sales transactions, enter a ledger account. By default, LN displays the Sales Tax account in this field.

Sales Tax on Receipts (Interim)

The interim account for purchase tax amounts. If the tax type is On Payments, you must specify a ledger account.

Sales Tax on Advance Receipts

The ledger account to which the tax on advance receipts is posted.

If you select the Calculate Tax on Advance Payments/Receipts check box in the CMG Parameters (tfcmg0100s000) session, LN posts the tax amounts to this ledger account when you register advance receipts.

To distinguish tax amounts on advance receipts from other tax amounts on sales transactions, enter a ledger account.

Sales Tax on Assignment of Advance Receipts

The contra account for tax amounts on assigned advance receipts.

LN creates a reversal posting of the tax amount on this account when you assign the advance receipts to sales invoices.

By default, LN displays the Sales Tax on Advance Receipts account in this field.

Shifted Sales Tax

The contra account for shifted sales tax.

VAT: Regular value added tax (VAT) on sales and purchases.

Note: For tax registration setup, this kind of tax also represents sales tax.
Stamp Tax: A kind of tax on trade notes.
Withholding Income Tax: Withholding tax that you must withhold from your suppliers' purchase invoices and pay directly to the collection office.
Withholding Social Contribution: Withholding social contributions on purchase invoices that you must withhold from your suppliers' purchase invoices and pay directly to the collection office.
Social Contribution (Company Expense): Social contributions (expense) that you can post as costs.
Exclude from Withholding: You can link tax codes of this kind of tax to purchase transactions that are not subject to withholding tax, but that you must report to the collection office for withholding tax and social contributions.
Tax Settlement: On the tax analysis reports, tax payments to the collection office are represented by this kind of tax code.
Not Applicable: None of the previous types apply. For example, for a group tax code the kind of tax is Not Applicable.

Tax Account for Bad Debt Relief in Sales

The ledger account to which the Adjustments to Tax in Bad Debt Relief transactions are posted.

Note:

To manage the Bad Debt Relief as input tax, the Bad Debt Relief account can be populated with a Purchase Tax account.
This field is applicable only if:
- The Tax Code is not set to No Tax Code
- The Kind of Tax field is set to VAT

Description

The ledger account's description.

Tax Account for Bad Debt Recovery in Sales

The ledger account to which the Adjustments to Tax in Bad Debt Recovery transactions are posted.

Note:

This field is applicable only if:
- The Tax Code is not set to 'No Tax Code
- The Kind of Tax field is set to VAT

Description

The ledger account's description.

Dimension 1

To post the tax amounts for this tax code to a dimension of this dimension type, you must select a dimension in this field.