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MIRO service tax calculation

PostPosted: Wed Aug 19, 2015 12:24 am
by ygjoshi
Hi


We require the below entry in service order during MIRO -->( This entry gets posted only if after Service entry sheet i change the PO and add Tax code ZT )
PK Account Description Tax Amount
1 31 1AIPR01 AI PROJECTS & ENGINEER ZT 10.00- ( Vendor Account )
2 86 191130 GR/IR-SERVICES ZT 10.00 (GR/IR Account )
3 81 550824 Miscellaneous Exp. ZT 1.40 (Account assignment in PO)
4 50 151521 Service Tax Payable ZT 1.40- (Service Tax Account Config in FTXP)

When i Put the tax Code in Service Order and perform the full process its gives me the below entry during MIRO
PK Account Description Tax Amount
1 31 1AIPR01 AI PROJECTS & ENGINEER ZT 10.00-
2 86 191130 GR/IR-SERVICES ZT 11.40
3 50 151521 Service Tax Payable ZT 1.40-

Need to know why system take proper entry after i change the PO Tax during MIRO else it does not pick the account assignment of PO

Re: MIRO service tax calculation

PostPosted: Wed Aug 19, 2015 5:48 am
by darkduck
Hi,
How much is PO value? How much was posted in the Service Entry Sheet?

Re: MIRO service tax calculation

PostPosted: Wed Aug 19, 2015 6:34 am
by ygjoshi
PO value is 100

Re: MIRO service tax calculation

PostPosted: Wed Aug 19, 2015 3:26 pm
by darkduck
1. What is the value of Service Entry Sheet?
2. Does your PO have the "GR-based IV" checkbox?


Re: MIRO service tax calculation

PostPosted: Wed Aug 19, 2015 11:07 pm
by ygjoshi
1. Value of service entry sheet is 100
2. PO has gr based iv

In fact, line items 2 and 3 are getting clubbed together in 2nd case which should not happen.
How to avoid that and service tax should pick the account assignment from PO.

Re: MIRO service tax calculation

PostPosted: Thu Aug 20, 2015 2:53 am
by darkduck
I assume your tax code is set to have only one tax rate with GL account assignment, that is 151521.
Your PO is GR-based, and it has been GR'ed for the amount more than the invoice amount.
In this case, whole invoice amount will be posted to GRIR account, and only tax amount will go to a separate GL.
If you want to post an offsetting line to Cost GL, then I see 2 options:
1) Post GR (SES) to amount exactly as invoice amount. In this case, MIRO will process the "excess" amount as descrepancy and put it to the GL account from PO.
2) Specify GL account 550824 in the tax code as a separate line item (NAV ?). This way, tax code will generate line items 3&4 from your document. The downside is that you will need as many tax codes as GL accounts.

Of course, both solutions should be tested for different flavours of business scenarios.

Re: MIRO service tax calculation

PostPosted: Thu Aug 20, 2015 5:00 am
by ygjoshi
Hi, thanks

151521 GL is used from the Tax code in FTXP and the second GL which should hit should be from the AAC in the PO
GL account for expense acount can not be defaulted since that's will be from PO AAC