The value added to goods results from the difference between the purchase price and the sales price. An example of value-added tax, more commonly referred to in the USA as sales tax, would be the amount the State adds on top of the sales price.

Sales tax can be divided into input tax and output tax.

The difference between output tax and input tax is the tax payable, which must be paid to the tax authorities.

A tax code is defined for each tax rate in Customizing for Financial Accounting.

In conventional Invoice Verification, on the vendor screen you enter the tax amounts indicated in the invoice and also the tax codes defined for the tax rates. If the tax amounts are not apparent in the invoices, you flag Calculate tax and the system then automatically calculates the tax amounts.

Each tax-relevant item is allocated a tax code. The system reads the relevant tax code for each item from the purchase order or from the account to be posted to. If a tax code cannot be determined for an item, the system uses the one that was last entered.

You can change the tax code for an item on the item detail screen.

The system calculates the tax base for each tax code from the amounts and tax codes of the individual items.

The system verifies the tax data when you simulate or post an invoice. You can make corrections and changes on the Tax data screen.

A tax code is defined for each tax rate in Customizing for Financial Accounting.

In Logistics Invoice Verification, on the initial screen you enter the tax amounts indicated in the invoice and also the tax codes defined for the tax rates. If the tax amounts are not apparent in the invoices, you flag Calculate tax and the system then automatically calculates the tax amounts.

Each tax-relevant item is allocated a tax code. The system reads the relevant tax code for each item from the purchase order or from the account to be posted to. If a tax code cannot be determined for an item, the system uses the one that was last entered.

The item tax codes are displayed in the item list and can be changed there if required.

The system calculates the tax base for each tax code from the amounts and tax codes of the individual items.

The system verifies the tax data when you simulate or post an invoice. You can make corrections and changes on the Tax data screen.

The system displays a key for terms of payment, for example:

ZB01within 14 days: 5 % cash discount

within 21 days: 3% cash discount

within 40 days: no deduction

You can enter payment terms in the vendor master record and in the purchase order.

When you create an invoice referencing a purchase order, the system suggests the payment terms from the purchase order; if none are available, those from the vendor master record are suggested. These default values can be changed.

You can enter terms of payment or a fixed cash discount amount in the Invoice Verification component.

In conventional Invoice Verification, you can also enter a cash discount base amount, or exclude individual items from cash discount.

Installment conditions can only be processed in Logistics Invoice Verification. If you enter an installment condition in Invoice Verification, a separate vendor line is created for each installment when the accounting document is posted.

There are two ways of posting the cash discount amount:

Gross

When you post the gross amount of an invoice, the system will ignore the cash discount amount when you are entering the invoice data; the cash discount amount is posted to a cash discount account when payment is made. The cash discount amount is therefore not credited to the stock or cost account.

Net

When you post an incoming invoice, the cash discount amount is posted from a cash discount clearing account to the stock or cost account. The cash discount clearing account is cleared when payment is made.

Whether an invoice is posted gross or net depends on the document type.

You define the document types in Customizing for Invoice Verification. For each document type, you indicate whether postings should be made gross or net. You also set the type of document that is suggested when an invoice is entered.

The system ignores the cash discount amount when posting the invoice.

The cash discount amount is posted when payment is made:

The cash discount amount for the net invoice value is posted as a non-operating result.

A cash discount difference is created as a result of the input tax. The system therefore corrects the input tax posted, so that the tax amount is the tax on the net value of the invoice.

The cash discount amount is already taken into account when the invoice is posted.

The cash discount amount is posted to a cash discount clearing account; this is cleared when payment is made.

The offsetting entry for the posting to the cash discount clearing account is made to the stock account, except in the following cases:

If the material is valuated at standard price, the price is posted to a price difference account.

If the material is valuated at moving average price and there is insufficient stock coverage, only the amount for which stock coverage is available is posted to the stock account. The remainder is posted to a price difference account.

SAP AGTAMM30 4.0B7-10