Dear SAP Business Suite Financials Community Members and Friends,

On Nov 13, 2013, SAP ERP Financials developers will be onsite in Newtown Square, PA, for the Financials Info Day to discuss with customers:

• Recent achievements that are available now:
  • Latest updates on new capabilities in Financial and Management Accounting and Closing
  • SAP Suite on HANA and Accelerators,
  • Analytics and user experience.

• The roadmap and product strategy from a development point of view:
  • SAP HANA for SAP ERP Financials,
  • New User Experience,
  • Support for upcoming legal requirements in the areas of IFRS, Revenue Recognition and Treasury.

Participation in this interactive customer event is free, but requires registration (contact: financialsinfoday@sap.com)

Agenda:

Kind regards,

Dirk Troltenier

Reader note:

Assumption is, reader is aware of basic integration concepts of different modules in SAP.

As different SAP modules are closely integrated, reconciliation is one of the most important and critical period end activity in Financial reporting.

Usually, reconciliation is done as part of the month end closure process.

In this blog, I would explain how to do SD-FI-COPA reconciliation and find without running through configurations.

SD-COPA and SD-FI are tightly integrated in SAP. As you all know, below is the integration of SD-FI-COPA.

SD is integrated to COPA via linking of SD pricing conditions to COPA value fields

FI/MM is integrated to COPA via PA transfer structure (Via linking of cost elements/cost element group to COPA value field)

SPRO path:

In an usual production scenario, amount/quantity fields updated in SD/FI/MM are immediately flown to COPA as well. Sometimes, users face the issues due to mismatch of the figures shown between SD-COPA and SD-FI. The reports used here might be standalone reports of respective module.

As the number of documents posted in a live production system is quite high and one value field might receive the data from multiple sources from SD/FI/MM, It is really tough to dig back to particular document which is causing the mismatch.

But, SAP folks are well thought of this critical activity at earlier stages of the design and t-code KEAT was delivered for this.

I would like to share the little knowledge I have on this topic with our community.

Let us see how to find if there are any reconciliation differences exist and if exist, which documents are causing such difference.

Below is the selection screen of KEAT. Enter the maximum selection screen fields that are known to us and execute the report. Currency type 10 can be used which is company code currency.

Below is the sample output of the report

Output show the values recorded in SD, FI, PCA and COPA for each value field and respective delta values between the modules.

Even though SD-FI-COPA integration happens on real time basis, sometimes it is possible that minor differences arises due to various reasons.

One common reason is due to different currencies of company code and controlling area. Minor exchange rate/rounding differences occurs between

SD-FI-COPA. Some times, values in SD itself may not flow to FI/COPA.

Clicking on the delta value in red shows the list of documents which are causing this difference.

I don’t want to put too much information in one blog. Too much information at one go is not a good idea

People lose concentration at certain threshold

Here is part 2

http://scn.sap.com/community/erp/financials/blog/2013/10/30/sd-fi-copa-reconciliation-part-2

Thanks for reading this blog and feed back.

Thanks,

Vinod Vemuru

This blog is a continuation to the earlier blog "SD-FI-COPA reconciliation: Part-1"

http://scn.sap.com/community/erp/financials/blog/2013/10/25/sd-fi-copa-reconciliation-part-1

This blog talks about how characteristic and value field flow is integrated between SD and COPA and if something went wrong in COPA document how to regenerate correct values without impacting respective SD and FI postings.

T-code KE4S can be used to simulate the characteristic and value field flow from SD to COPA or reverse and re-post COPA document alone. Alternatively,

T-code KE4ST can be used only for simulation purpose. Let us see how this can be used to understand the integration between SD and COPA without running through configurations.

Important fields in selection screen (KE4S):

Test Run:

No document is created (Even in posting run). Only values are simulated.

Create Log:

If we select this, Characteristic and value flow log is created for further analysis.

Redetermine profitability segment:

This option should be used cautiously. If this is selected, profitability segment values are redetermined as per the current system config. This can be used in scenarios like, incorrect values posted in profitability segment due to incorrect derivation rules/incorrect logic in user exit.

Check for existing records:

This performs a pre-check before transferring the data. Only documents which have not been flown to COPA are considered for posting.

Reversal of line items:

This option reverses already transferred documents and re-post all (Both transferred and non-transferred).

Posting without check:

This option should be used cautiously. This option re-post everything. If there are documents already posted, system posts duplicate document.

Please go through F1 documentation of each field for more details.

Go to T-code KE4S, enter a billing document which was transferred to COPA and execute.

Below is the output of report.

We can see two lines are created here because, one is for reversal and other is for re-post. There are different status ICONs in ALV tool bar indicating number of documents in respective status. This helps particularly when we process huge number of documents.

Now let us see how characteristic and value flow analysis is done.

Characteristic flow analysis:

Select the row and click on "characteristics".

Below screen shows the characteristic values that are derived in COPA document.

Click on "Display derivation analysis".

In this step, we can find how each characteristic was modified in each step of derivation with respective old and new values. If any characteristic is changed in a particular derivation, that row is highlighted in yellow. Node "Values before/After" just displays old and new values during derivation process.

Derivation customization can be configured in t-code KEDR.

Value flow analysis:

Select the row and click on value flow.

Below result shows, source of each value field. As I mentioned in my previous blog, COPA value fields are linked to sales pricing conditions.

So, below output analysis shows how each sales condition is transferred to the respective COPA value field.

You can see for some rows, there is no G/L account assigned. It is because, these conditions are configured as "Statistical" and hence, no FI posting.

Since there is no FI posting, no G/L determined here too. We can find the statistical tick in the pricing conditions of the original billing document. Such kind of config is required when we want to see some figures only in reporting/for analysis purpose but not part of financial booking.

In first row, Currency type B0 indicates values in "Operating concern currency" and 10 stands for values in "Company code currency".

Valuation:

COPA valuation is used for automatic calculation of values in costing based COPA (Both planned and Actual). There are different valuation strategies provided by SAP.

1. Valuation using material costing,
2. Valuation using conditions and a costing sheet,
3. Valuation by means of a user-defined program exit,
4. Valuation with transfer prices

Please check below IMG documentation for more details.

Select the row and click on valuation.

Each valuation strategy step can have different logic to change value fields.

Click on the Analysis button which show if the value field has been changed in respective user exit.

Click on "Result of Valuation". This shows the entire list of value fields before and after valuation.

Hope this blog helps to give better understanding of SD-COPA integration and how characteristics and value fields are determined.

Your valuable feed back on this blog is most welcome

Thanks,

Vinod.

Hi Experts,

I am working for Royal bank of canada ACH foramt related DME.I am not able to write logic for Entry/Addenda Count. Kindly help me to get resolution.

Regards,
Natesh Kumar

I would like to share my knowledge related to assigning a voided check to a payment.

Sometimes we void a check and payment inadvertently vide FCH8.

When we try to cancel the voided check payment using F110-->Environment-->Check info-->Delete--> Reset data and resetting the voiding data  SAP will not be allowing to reverse the reversal.

Resetting vide FCHG also in vain.

You cannot assign the void check vide FCH5 either.

Though the vendor encashed, because of reversal in system, the payment document got reversed and vendor liability gets opened and Bank account(in SAP) will be credited as well.

Now the Bank reconciliation statement will not tally and there is a risk of paying once again for the same document.

Lets see how to overcome such a situation.

Steps:

• Create a Automatic Payment Run vide F110 for the vendor for that open item.
• New check number will be assigned for that.
•                                 Or
• Do payment posting vide F-53
• Assign a check number vide FCH5.
•                   Now
• Go to FCHT give the recent payment document’s check number in the Data on the First check tab and enter the voided check to be assigned in the Data on the Second check tab.

Now what happens is the voided check is assigned to the new payment document and new check is assigned to the old payment document and it is showed as void.

I have tried to make the blog as much short and sweet as possible, but do not missed out any key points.

Hope this blog helps.

I expect your valuable feedback either positive or negative. Positive feedbacks for appreciation and negative feedbacks for correcting mistakes.

I am pleased to announce the release of the SAP Community Development Group Mapping between SAP data fields and the Common Global Implementation Initiative Message Template for the ISO 20022 pain.008.001.02 Direct Debit Message.  This mapping reflects the effort of the SAP Industry Standards and Open Source Team [Me], the SAP Globalization Services Team [Marton Luptak], and a number of banks and corporate representatives.  If you would like a copy of the mapping along with a related word document that explains how to read the map, drop me a line.

Hello everyone,

The purpose of this document is to provide a list of KBAs/Notes that were released/updated on December 2014.

The following notes below:

• 1949019 - US LC 2013: Smartforms for Withholding tax reporting
• 1949020 - US LC 2013: Smartforms for Withholding tax reporting
• 1949021 - US LC 2013: forms for withholding tax reporting
• 1949022 - US LC 2013: forms for withholding tax reporting

are released for US Legal Change for the year 2013.

These notes include the latest version os forms and Smartforms used to have Withholding Tax Reporting output generated correctly and up-to-date.

Please note, in order to view the contents of the guides and SAP Notes, you will need to be logged into Service Marketplace.

I hope it helps and you like it.

Danton Prestes

It is a very common requirement in any business which deal with sales and purchase in different currencies to have proper exchange rates to determine the local currency amount with respect to different foreign currencies they deal with. SAP has provided an option to maintain the exchange rates (T-code OB08) for different exchange rate types for different purposes.

E.g.: Rate type M is used for monthly average rates

        Rate type BUD is used for budget rates

Different terminologies used in this concept:

Exchange rate:

Exchange rates are used to find the value of a given currency with respect to other currency.

E.g.: 1 USD = 60 INR

Translation ratio:

Translation ratio is used for 2 purposes.

1. To maintain the alternate exchange rate between a currency pair and exchange rate type. This is used to overwrite the standard rate type M used for regular business transactions.

Eg: As per legal requirements in some countries, they need daily exchange rates for booking day to day transactions. So, to overwrite standard rate type M,

we can assign custom exchange rate types.

2. When the rate between two currencies is too huge, we use translation ratio and maintain the rate. This is to simply the exchange rate calculation.

Eg: Rate between USD and HUF is too high. So we maintain USD:HUF ratio as 1:100

With this setting, calculation happens as below.

Rate maintained between USD and HUF is, 1 USD = 90 HUF. This actially means 1 USD = 90*100 = 9000 HUF

Exchange rate maintenance:

Exchange rates are maintained through t-code OB08 and are stored in table TCURR. It is very important to lock the table entries during exchange rate maintenance as per basic database design principles to avoid any data record access during update. This design causes many issues specially during month end where many users of different countries try to update same table and gets locking error. More over, if the rate maintenance is an automated process say through IDOCs, if someone already keep OB08 open and exchange rate IDOC is processed, it fails due to lock issue.

Exchange rate work list concept can be effectively used here to lock only required entries during exchange rate maintenance.

SPRO path to configure Exchange rate work list.

Go to "Define Work list for Exchange rate entry" and create a new entry with proper name, description. Select maintenance interval as per business requirement like daily, weekly, monthly, quarterly etc. This is just an indicator of validity of latest exchange rate. System don't do any cross validation with this date which using the rate. It simply uses latest available rate.

Enter Tolerance percentage if required. If a value is entered here, system does a comparison with previous available exchange rate and through error if new rate is beyond the tolerance limits.

Go to "Assign Exchange rate to the work list.

Here, we assign the currency pairs and exchange rate type combination which comes under the purview of business scenarios. It is suggested to create one exchange rate work list per country and assign all the exchange rate types and currency pairs to be manually maintained to that work list. In below image, I have shown one local exchange rate type and currency pair which is updated on daily basis. Direct/Indirect quotation here determines how the exchange rate value to be used.

Maintenance of exchange rates:

Go to t-code TCURMNT, double click on the work list you are interested at. In the next screen, we can see all the exchange rates assigned to this work list only.

Maintain the valid from date, exchange rate value (Direct/Indirect rate as defined in earlier configuration) and save the entry. In this screen, we can see date of last rate change and what was the old rate as well.

Keep this screen open in change mode, ask another user to try to update another exchange rate work list or you can try with your ID itself. That person/you should be able to change the values in second list. This kind of concurrent maintenance is not possible through OB08. If one user logs in to OB08, no one else would be able to enter into change mode. Also, it is quite difficult to filter the required rates to be updated from OB08 as this displays all the exchange rates in the system.

Advantages of this solution:

1. This solution approach is very simple and flexible.

2. Users are allowed to see  only the rates they are allowed to maintain.

3. Concurrent maintenance of different rates for different countries are possible.

4. Don't cause locking issues for other users.

5. Authorization can be controlled at exchange rate work list level. So, no chances of accidental update of other rates than the required ones.

Disadvantages of OB08 approach:

1. Causes locking issues. This is so true during critical times like month end where multiple users try to update exchange rates.

2.Tough to filter the required rates.

3. Chance of accidentally updating unintentional rates as all the rates are accessible from OB08.

Authorizations required:

Object: S_EXCHRATE activity 01,02,03 for exchange rate work list. If you can't save the entries, please check with BASIS team to get required authorization.

Your feed back and comments are most welcome.

Thanks,

V V

Scenario:

Multiple partial payments from an invoice through Automatic payment program (F110) with different payment dates.

Prerequisites:

1. Use Transaction code FBKP to create a Special GL Indicator “P” and assign GL Account 160000 to the Vendor Recon Account.

2. Check posting keys ( It must be Debit is 09 , credit is 39 and Special GL Indicator “P”) using Transaction code FBKP for automatic posting while posting payment request through: F-59

3. Use Transaction code OB41 to facilitate posting key “39” for Special GL Indicator “P”.

4. Use Transaction code FBZP to facilitate payments for Special GL Indicator “P”.

5. Post the vendor invoice through FB60 or F-43

6. Execute F- 59 to generate request for 1st partial payment  request with reference of main invoice Document number: 8001 for amount 1000000\-

Note: Please note, this is Noted item (Advance payment request document) which is not going to impact any of the financial figures i.e Balance sheet.

7. Use the T code FB02 to Block the Main invoice number: 8001.

8. Run Automatic payment program (F110) to make 1st partial payments.

9. Again Execute F- 59 to generate request for 2nd partial payment request with reference of main invoice Document number: 8001 for amount 1000000\-

10. Run Automatic payment program (F110) to make 2nd partial payments.

11. Use the T code FB02 to UN Block the Main invoice number: 8001.

12. Finally Run Automatic payment program (F110) to make final payment for remaining amount 3000000\-

Solution:

1. Use Transaction code FBKP to create a Special GL Indicator “P” and assign GL Account 160000 to the Vendor Recon Account.

2. Check posting keys ( It must be Debit is 09 , credit is 39 and Special GL Indicator “P”) using Transaction code FBKP for automatic posting while posting payment request through: F-59   Check posting keys ( It must be Debit is 09 , credit is 39 and Special GL Indicator “P”)

3. Use Transaction code OB41 to facilitate Special GL Indicator “P” for posting key “39”

4. Use Transaction code FBZP to facilitate payments for Special GL Indicator “P”.

5. Post the vendor invoice through FB60 or F-43

6. Execute F- 59 to generate request for partial payment with reference of an invoice.

7. Use the T code FB02 to Block the Main invoice number.

          And Click on Save

8. Run Automatic payment program (F110) to make multiple partial payments.

9. Again Execute F- 59 to generate request for 2nd partial payment with reference of main invoice Document number: 8001 for amount 1000000\-

10. Run Automatic payment program (F110) to make 2nd partial payments. Note: Vendor line item display through FBL1N

11. Use the T code FB02 to UN Block main invoice Document number: 8001

12. Finally Run Automatic payment program (F110) to make final payment for remaining amount 3000000\- Note: Vendor line item display through FBL1N

Thank you very much  and all the best.

Regards

Sudharshana Vamsi

Doubtful receivables & Bad Debt :

Product Companies using SAP, have a large customer base . Out  of them some may delay or default for payment, after the invoicing is done.

This leads to doubtful receivables and ultimately, if not payed , a bad debt.Lets understand this with the below example.

A company has done a credit sale to a customer. Suppose the customer has gone bankrupt or has been liquidated.In that case,first of all the

Company would classify the receivable amount as doubtful receivable.

Then after a particular time frame, it will create a provision for a certain percentage of the

receivable or the entire receivable . After this, there are 2 possibilities.

1. Customer will pay the money back

2. Customer wont pay the money back.

In each of the cases, the receivable amount needs to be cleared.

SAP provides specific functionality to map and handle this entire scenario.Given below are the detailed steps.

1. Setting up a  Special GL indicator and creating and assigning a particular GL account to it.

t code: FBKP

Maintain a Special GL indicator(say D) , which is to be maintained as the special gl account for BAD Debt provisioning.

Then maintain special GL Account against the recon account.

2. Define Provision method, timeline for reclassification and also the timing and percentage for the reserve creation

t code:OB04 .

Define the Receivable Provision Methods.

In Per, maintain the month .

If 3 is maintained there, it would mean after 3 months of the item is due, this

item is due for being reclassified to a Special GL Account

In Months,maintain a value and in Perc 1, maintain a percentage.

Is 3 is maintained in Months1 and 50 is maintained Pec1, it would mean after 3 months of the item is due,

50% of the due amount can be maintained as a reserve.

Same would apply for Perc2 and Perc3

3. Define the Debit and Credit accounts for Provision for Doubtful Receivables

t code  : OBXD

maintain the Bad Debt expense account in debit section and a Provision Account in Credit section

3. Now run F103 .

It will create transfer posting , with the above provision method entered on selection screen . Lets see the accounting entries created for the same.

Initially, during the credit sale

Customer Dr 8000

Sales Cr    8000

Now if this has crossed the time line and is due for reclassification

F103 will run and this will post as below

Special GL Account Dr 8000

Customer Cr 8000(it will clear the customer item of step 1)

4. Now run F104

If number of days in arear ,has crossed the time line and is due for provision posting

F104 will run and this will post as below

Expense Account Dr 8000

Provision Account Cr 8000

5. After this, there are 2 possibilities.

a. Customer may pay the money back

Cash Account Dr 8000

Customer Account Cr 8000(it will clear the Special GL account item of step 2)

Then run F104 again. It will reverse and clear the entry of step 4.

Provision Account Dr 8000

Expense Account Cr 8000

b. Customer wont pay the money back.

Expense Debit 8000

Customer Credit 8000

Then run F104 again. It will reverse and clear the entry of step 3.

Provision Account Dr 8000

Expense Account Cr 8000

F103 and F104, can set up as monthly batch jobs to handle the monthly doubtful receivables and bad debts, if any.

This is how Doubtful receivables & Bad Debt are handled in SAP. Please provide your valuable comments and suggestions.

Regards

Rudra

Variant creation for reports I have come across the variant creation for report and thought of sharing this to a larger community. Please find the attachment for reference purpose.

I have joined last month in one edition of Inside Track organized by SAP Mentorsinitiative. I had the opportunity to participate in this event here in São Paulo #SITSPas FI instructor in one of the sessions of the event schedule. I come here through this blog to expose some of the content that was presented in this single functional Session of the whole event.

PT Version: Gaps Localização Brasil no #SITSP

I selected some SAP FI GAP’s among the solutions that I have implemented in my last project by Atos Roll Out in Latin America:

• GAP 001 - Treasury and Financial Sector
• GAP 002 – Payment Method Boleto
• GAP 003 - Income Extended Withholding Tax
• GAP 004 - Extended Withholding Tax INSS 3.5 %

I have Chosen a focused content in the Brazilian localization, which is quite complex compared to many other countries, especially in relation taxes processes. Sometimes threads appear here on Brazilian localization problem, and the solution is really difficult be to find by someone outside Brazil. It’s almost impossible to perform the Brazilian installation as a foreigner. I use to receive emails from many parts of the world with questions about customizations and processes. Despite having answered many direct questions, I prefer to open threads and inform the link. Thus whole community can be benefited instead just one person only.

I would like to mention please don't take this content as step by step documentation. Since it's a blog post I just mention the needs and the paths to find your own solution assuming each SAP instalation has particular ways. I hope you can keep this blog with possibilities to find your solutions or recommend for people in need.

GAP 001 - Treasury and Financial Sector

The financial sector is always a GAP as each country could use specific banking system. In Brazil is only needed the classics print programs and specific customization in FBZP, OT83 and OB47 for attending 3 types of Bank Layouts:

• Banco Itaú
• Banco Bradesco
• Brazilian Bank Federation (FEBRABAN)

Payment methods are assigned in OB47 in order to write the payment advice according 3 bank layouts.

GAP 002 –Payment method Boleto.

There is a local payment method particular called Boleto . This isn’t Nota fiscal or invoice but a printed document which contains the bar code for identified payments. This barcode is enabled by bank reference field status as optional (OB41) for companies with country code BR.

Currently it has 3 types of Boletos:

• Vendor Payments ( Standard payment advice register Segment_J)
• Concessionaires Payment - Public Concession Companies (Segment_O)
• Taxe Payment ( Segment O or N )

The standard RFFOBR_U program attend only Vendor Payments Boletos. The Other two must be developed ( ZRFFOBR_U ) according related bank layout.

My hint. Many people don’t know how to handle the difference in Boleto field length. The solution isn’t use text field or text description. We just have use the shortened format from 48 to 44.

GAP 003 - Income Extended Withholding Tax

Brazilian withholding taxes requires the application of SAP Note 1706309 as prerequisite. This note describes all technical and customizing settings for main taxes installation.

The Issue in question regards incoming tax RA. This settings works only for retention at the time of payment and our process it is designed to be posted at invoice moment.

The solution had to be developed. The formula 903 which makes negative the condition IIRQ was replaced by the new one 901. The result was achieved through substitution exit defined.

Follow screen sample of the correctcustomer invoice.

GAP 004 - Extended Withholding Tax INSS 3.5 %

the withholding tax of social security contributions (INSS tax) on the Nota Fiscal and invoice on services should be raised from 11% to 3.5 % regarding period of April 2013 to December 2014. This is applied for service providers (partial contracts in case of building construction) required to pay the employer's social security contribution on 2 % of the company gross revenue (MP 601/2012). Including the billing construction and Subcontractors.

Based on above comments the problem was raised for service companies, such as SAP consultancies. Tax rates is 3.5% or 11%? Despite billing invoices have no free taxes selection at invoice entry rather than procurement by MIRO. A service provider might be billing internally or externally to the contracting client. It would cause a big number of customer master data changes. This procedure creates inconsistencies during Accounts Receivable clearing. The RFWT0010 program adjusts this inconsistency however in a Roll Out project we have many security and authorizations issues. This path was changed.

A development of user exit in accordance with material/service master data was the solution for occasional WHT postings.

In transactionVF02 when you try to release a cancellation invoice to accounting (by clicking on the button with the green flag or pressing SHIFT+ F4) , instead of the creation of an accounting document the error message FF786 is issued:

A tax reporting date is missing, and should be entered.

The error message refers to note 1232484,  which explains in detail the background of the new field BKPF-VATDATE.

To have this field available, the  tax date will have to be first activated in the customizing of the company code (transaction OBY6):

Important to know is that the filling of the field is not done in the SD module. You can not find an entry possibility on the invoice, because this field is simply not existing there. The  VATDATE is determined during the creation of the accounting document, in FI coding, by a BAdI VATDATE_VALUES (see in transaction SE18).

After the activation, when a new invoice is created, in the accounting document the field BKPF-VATDATE is automatically populated.

But what happens when you try to cancel an invoice that had been created before VATDATE activation?

The above shown error FF786 occurs when the so called new cancellation procedure with function module AC_DOCUMENT_REVERSE is executed by the system, and both accounting documents of the original invoice, and the one of the cancellation invoice are automatically cleared with each other. See

note 1259505 for a detailed explanation.

Now the problem in this case is the missing VATDATE in the accounting document of the original invoice, which should be cancelled:

This is the root cause of the error FF786, when a cancellation is performed with the new cancellation procedure, because in this case the VATDATE is copied from the accounting document of the original invoice:

Here, as the BKPF-VATDATE is not filled, no date can be assigned in the cancellation accounting document, which leads to the error FF786:

VATDATE is activated in customizing table T001 (transaction OBY6), the BKPF-VATDATE is empty, therefore error message FF786 occurs.

To avoid the error, one method would be to fill the BKPF-VATDATE in already created accounting documents. As in the PDF attachment of the already mentioned note 1232484 described on page 8, the migration tool GLO_VATDATE could be used for this purpose (enter this name in transaction SA38).

An alternative would be to force the system to execute the old cancellation procedure with function module AC_DOCUMENT_CREATE with the help of user-exit USEREXIT_FILL_XKOMK1 of include RV60BFZA, see note 339928.

With the old cancellation the BAdI VATDATE_VALUES can be executed, and BKPF-VATDATE filled according to your own logic.

Of course the disadvantage of the old cancellation procedure would be that you have to clear the accounting documents yourself.

The recommendation is therefore to use the migration tool and add VATDATE in already created accounting documents.

Further information:

*************************

SAP Notes:

1232484 - How to use the VAT due date, tax reporting date VATDATE

1567029 - Badi VATDATE_RULES: VF11 w/ new cancellation, FB08 w/ input

1259505 - FAQ: New cancellation procedure in SD

339928 - New cancellation procedure cannot be deactivated

Dear All,

based on the below circular I did some configuration changes and tested with two case scenarios. Please check if this is helpful

Purpose:Based on the below circular, certain modifications have been effected to meet the conditions. The document also projects the accounting treatment in SAP for payment made under section 194J where Service tax is explicitly mentioned or not mentioned in the invoice.

 
Circular 01/2014 dated 13.01.2014 reproduced hereunder.

F. No_ 275/59/20124T(B)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

Circular No.01/2014

New Delhi, the 13th January-'2014

Subject: TDS under Chapter XVII-,13 of the Income-tax Act, 1961 on service tax component comprised in the payments made to residents - clarification regarding

1. 1. The Board had issued a Circular No.4/2008 dated 28-04-2008 wherein it was clarified that tax is to be deducted at source under Section 194-1 of the Income-tax Act, 1961 (hereafter referred to as 'the Act'), on the amount of rent paid/payable without including the service tax component. Representations/letters has been received seeking clarification whether such principle can be extended to other provisions of the Act also.
2. 2. Attention of CBDT has also been drawn to the judgement of the Hon'ble Rajastlian High Court dated 01.07.2013, in the case of CIT(TDS) Jaipur vs Rajasthan Urban Infrastructure (Income-tax Appeal No.235, 222, 238 and 239/2011), holding that if as per theterms of the agreement between the payer and the payee, the amount of service tax is to be paid separately and was not included in the fees for professional services or technical services, no TDS is required to be made on the service tax component u/s 194J of the Act.
3. 3. The matter has been examined afresh. In exercise of the powers conferred under section 119 of the Act, the Board has decided that wherever in terms of the agreement/contract between the payer and the payee,the service tax component comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component.
4. 4. This circular may be brought to the notice of all officers for compliance.

 
   
Configurational Changes

**** (New)→Withholding Tax→Extended Wtt→Define Wtt Type for invoice posting

Change the Settings from Gross Amount to Net Amount as shown below.

By considering the following example, we will take two scenarios,

►Service Amount :     10000

►Service Tax @12%:     12000

►Edu Cess @2%:     240

►Sec Edu Cess 1%:120

►Total :112360

Scenario 1 - where the bill amount is 112360 and service tax component  is not shown separately

 
At the time of executing the invoice (FB60/Miro), user is required to select the NIL tax code, system will

automatically pick up the base amount for calculation of TDS if the relevant tax code is maintained in the vendor master.

Scenario 2 - where the bill amount is 112360 but the service tax component is shown separately

At the time of executing the invoice (FB60), user is required to select the relevant service tax code ,system will pick up the net amount for calculating the TDS by excluding the service tax amount. The relevant TDS tax code should be maintained in vendor master

I hope this will help you in understanding the new changes.

best regds

Subha

Hi All,

User's getting below errors frequently.

1. Billing document Saved ( No Accounting account generated.)

2. Missing foreign export Data while creating billing account document and while canceling the billing document.

My Experience: For the both error I have searched in our SCN and i have got solution from SCN but i want to find out what could be the reasons to get the above errors to the users frequently and i did reverse testing the for both error by learning the SD . And some time user may ask reasons for above issues. So Hope this blog may you guys. Add your experience ,so that i will incorporate into this Blog.

Please find the Solution and Error along with reverse testing

1. Billing document Saved ( No Accounting account generated.)

         A. Reasons:

         1. Create  the Sales last month -T.cdoe VF01

         2. Post the PGI  with reference of delivery - T code: VL02N in Past month

         3. Post Billing document – T code: VF01 based on delivery document  in past month

              a. Here accounting document will be generate in past month based on billing document.

          4. Due to Some of the resaonuser may cancele the  Billing document – T code: VF11 in present month after closed the 12th month

                Note:  Here based on above reason  user may get error like Document (Blling document ) 689500037 saved (no accounting document generated). 

                Overview of billing before creating accounting document after cancel the billing document - T code  - VF03

                 B. Solution

                 i. Go to VF02 or and enter canceled Billing document and perform below activity.

                    Please check billing document date and change if required for present date or we need to open the 12th posting Period for time being  to post FI document to complete the above task (for open FI posting period – OB52 T code )

              And go to VF02 or VFX3 tcode and enter Billing document: 689500031 and perform below activity and accounting document will create successfully and Balance will be nullify.

2. Missing foreign export Data while creating billing account document and while canceling the billing document     

     Based on above error i did reverse testing how  and when errors are encountering  and i found below reasons and steps needs to follow as below to get the solution.

     Scenario: first user may got the order from customer and user created the sale order ,created delivery with reference of  SO and did the PGI

    A. Reasons:

      1. Sale order creation  - T code: VA01

      2. Delivery creation  - T code: VL01N

      3. PGI posted - T code: VL02N

     4. Billing document posted – T code: VF01

       a. Here accounting document will be generate

      5.Due to order cancelation fron customer ,user may to delete order and  cancelling the order  Canceled the goods issues document – T code: VL09

     7.Deleted the delivery document  - T code : VL02N

     8.Billing document canceled – T code: VF11

      Note: Here user getting error like below.

    this error will come after deleting the delivery document number:

  Solution and reverse testing:

                      a) Document 689500037 saved (no accounting document generated) ,this error will come before deleting the delivery document:

                      b)  VF03 - Overview of billing document before deleting the delivery document:

    Solution for above error

Please check billing document date and change if required for present date or we need to open the 12th posting Period for time being  to post FI document to complete the above task (for open FI posting period – OB52 T code )

6.Cancelled the goods issues document – T code: VL09 in Past month

7.Deleted the delivery document  - T code : VL02N in past month

8. Billing document canceled – T code: VF11  in present month

    Note: Here user getting error like below.

    b) Document 689500037 has been saved (foreign trade data incomplete), this error will come after deleting the delivery document number:

    Solution for above 8.b error:

    Go to VI14X T code

    Enter the Cancelled Billing: 689500039

    Enter the above inputs or required by user.

    Go to VF03 and enter Billing document to see overview.

Go to VF02 or VFX3 and enter the cancelled Billing document and perform below activity.

Finally check the Over view of Billing document: VF03

--In progress----

!! All the best !!

Thank you.

Regards

SudharsanaVamsi

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Watch the video below to find out more, and read these key related resources right here in SCN:

·         Learning Rooms: Social Learning with SAP Learning Hub

·         SAP Learning Hub FAQ

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When there are multiple line items in a single document need to remove payment blocks for all line items at a time .below is the process how to remove block using Mass Change option in FBL1N.

Note:payment block will come from payment terms below are the setting for default payment block

If the document is related to Vendors use -FBL1N, Customers use-FBL5N and GL use –FBL3N.

Here I am showing Vendor related document.

Execute FBL1N:

Go to Dynamic selection screen select document number

Click on Execute. you will see the list of document line items posted to different parties.

Got to ‘EDIT’ select all option.

System will select all line items

Now Click on mass change button then You will see a pop-up window

To remove the block click F4 for payment block field and select free for selection

And then click on execute changes button .

After changing you will get a message.

Regards

Sada Bandla

I am working on Accrual Engine for prepaid exps.monthly wise to be accrued.I got the following error while testing the scenario with the ACACTREE01.but accrual object has created with the number,where I see this document display.

I request you, in the Define extended combination of characteristics for Initial (I)and Perioidical (P) and U ,what actually GL accounts have to give .Start Account and target Accounts for I,P and U.

I have assigned in the settings Assign company code is in test status .is it correct or need to give productive status.

The errors are

)Error in document: ACE $3 ECSCLNT300

Message no. RW609

Diagnosis

Errors occurred when checking or posting the document

Reference type = ACE

Reference key  = $3

Logical system = ECSCLNT300

You can find the errors in the log.

System Response

The document cannot be posted.

Procedure

Remove the error in the document and create and post the document again.

2)Postings to G/L accounts with open item management are not permitted

Message no. FAGL_POST_SERVICE012

Diagnosis

You use G/L account 1421005 in company code DS01 with open item management. However, postings are not permitted to G/L accounts in individual ledgers with open item management.

Please clarify my doubts ,Once I solve this what is another t code to test in the periodical posting please.

It is a very common requirement in any business which deal with sales and purchase in different currencies to have proper exchange rates to determine the local currency amount with respect to different foreign currencies they deal with. SAP has provided an option to maintain the exchange rates (T-code OB08) for different exchange rate types for different purposes.

E.g.: Rate type M is used for monthly average rates

        Rate type BUD is used for budget rates

Different terminologies used in this concept:

Exchange rate:

Exchange rates are used to find the value of a given currency with respect to other currency.

E.g.: 1 USD = 60 INR

Translation ratio:

Translation ratio is used for 2 purposes.

1. To maintain the alternate exchange rate between a currency pair and exchange rate type. This is used to overwrite the standard rate type M used for regular business transactions.

Eg: As per legal requirements in some countries, they need daily exchange rates for booking day to day transactions. So, to overwrite standard rate type M,

we can assign custom exchange rate types.

2. When the rate between two currencies is too huge, we use translation ratio and maintain the rate. This is to simply the exchange rate calculation.

Eg: Rate between USD and HUF is too high. So we maintain USD:HUF ratio as 1:100

With this setting, calculation happens as below.

Rate maintained between USD and HUF is, 1 USD = 90 HUF. This actially means 1 USD = 90*100 = 9000 HUF

Exchange rate maintenance:

Exchange rates are maintained through t-code OB08 and are stored in table TCURR. It is very important to lock the table entries during exchange rate maintenance as per basic database design principles to avoid any data record access during update. This design causes many issues specially during month end where many users of different countries try to update same table and gets locking error. More over, if the rate maintenance is an automated process say through IDOCs, if someone already keep OB08 open and exchange rate IDOC is processed, it fails due to lock issue.

Exchange rate work list concept can be effectively used here to lock only required entries during exchange rate maintenance.

SPRO path to configure Exchange rate work list.

Go to "Define Work list for Exchange rate entry" and create a new entry with proper name, description. Select maintenance interval as per business requirement like daily, weekly, monthly, quarterly etc. This is just an indicator of validity of latest exchange rate. System don't do any cross validation with this date which using the rate. It simply uses latest available rate.

Enter Tolerance percentage if required. If a value is entered here, system does a comparison with previous available exchange rate and through error if new rate is beyond the tolerance limits.

Go to "Assign Exchange rate to the work list.

Here, we assign the currency pairs and exchange rate type combination which comes under the purview of business scenarios. It is suggested to create one exchange rate work list per country and assign all the exchange rate types and currency pairs to be manually maintained to that work list. In below image, I have shown one local exchange rate type and currency pair which is updated on daily basis. Direct/Indirect quotation here determines how the exchange rate value to be used.

Maintenance of exchange rates:

Go to t-code TCURMNT, double click on the work list you are interested at. In the next screen, we can see all the exchange rates assigned to this work list only.

Maintain the valid from date, exchange rate value (Direct/Indirect rate as defined in earlier configuration) and save the entry. In this screen, we can see date of last rate change and what was the old rate as well.

Keep this screen open in change mode, ask another user to try to update another exchange rate work list or you can try with your ID itself. That person/you should be able to change the values in second list. This kind of concurrent maintenance is not possible through OB08. If one user logs in to OB08, no one else would be able to enter into change mode. Also, it is quite difficult to filter the required rates to be updated from OB08 as this displays all the exchange rates in the system.

Advantages of this solution:

1. This solution approach is very simple and flexible.

2. Users are allowed to see  only the rates they are allowed to maintain.

3. Concurrent maintenance of different rates for different countries are possible.

4. Don't cause locking issues for other users.

5. Authorization can be controlled at exchange rate work list level. So, no chances of accidental update of other rates than the required ones.

Disadvantages of OB08 approach:

1. Causes locking issues. This is so true during critical times like month end where multiple users try to update exchange rates.

2.Tough to filter the required rates.

3. Chance of accidentally updating unintentional rates as all the rates are accessible from OB08.

Authorizations required:

Object: S_EXCHRATE activity 01,02,03 for exchange rate work list. If you can't save the entries, please check with BASIS team to get required authorization.

Your feed back and comments are most welcome.

Thanks,

V V

Process of JAPAN to create new consumption tax codes at module wise

1. FI Module

      1. Need to create the new tax code:A2(Sales) and V2(Purchase) in Development in transaction FTXP and transport the new tax codes with the export/import programs in transaction FTXP (tax code customizing: function: Tax code - Transport - Export / Import) in quality system.

      And finally need to transport with new tax transport number to production environment, once transport to new tax codes and need to run the following program: RFTAXIMP

     2. In order to activate the new tax codes, please use report RFTAXIMP.

          About this program:

           I. We need entered the country is proposed and the transport number which contains tax codes while running the RFTAXIMP program.

          II. This program is used for importing the tax percentage rates along with GL account for respective new tax codes which already imported to quality and in Production environment.

               Note: Here we can use Old GL accounts for new tax codes which are already maintained for old tax code: V1 and A1 respectively.

          III. Program RFTAXIMP generates a batch input session with the name.

          IV. Processing this batch input session creates the tax percentage rates and GL accounts for the imported tax codes in the corresponding country

          V. Check the status at SM35 whether the batch run successfully. 

          Note: To run the above program, need to open change Flag in quality and production environment (SCC4)

                   Please make sure the access has been taken or not in Production environment before performing the above activities that is like Client open,       table update access and SM35 access. 

        Screen shots: T code SE38 and How to run the program       

     SM35 status at after run the above program.

3. Need to main the new tax code for Bank charges using – OBVU T code

Note:  New tax codes for bank charges better to maintain before 1 week of new fiscal year start.

4. Cash journal:

   Need to main the new tax code (V2) for Cash Journal using – FBCJC2 T code

Note:  New tax codes for Cash journal better to maintain before 1 week of new fiscal year start.

2. Material Management:

Action Points for Master Data

Tax code in Purchase Order defaults from the Info record and need to change old tax code to new tax code like below.

Menu: Material Management  Purchasing  Master Data  Info Record - T-code: ME12

Before change:

Based on above screen, we need to change the new tax code from V1 to V2

After changes:

Tax code V1  (5 %) should be replaced with new tax code V2 (8 %) on 31st March, 2014 or April 1st 2014. 

    Action Points – Transaction Data

           A) If any Purchase Order is to be created before 1st April, 2014 with consumption tax as 8 %.

                                                            OR

           B) Open Purchase Order created before 1st April, 2014 and GRN has to be carried out after 1st April, 2014.

               The following steps have to be carried out:

          Before the change:

           Purchase Order (T-code - ME21N)

           After the change:

           Change the ‘Tax code’ from V1 (5%) to V2 (8%) through ME22N 

3. Sale and Distribution

          Action Points for Master Data

          Here we need to maintain the conditions records at new tax code level

          Before changes:

          T code: VK13 (Display condition records)

          This activity needs to do in production environment directly which is not transportable:

       After changes:

      This activity needs to do in production environment directly for Tax code: A2 which is not transportable

       T code: VK12 (change of condition records)

      Change ‘Valid To ' date from 9999/12/31 to 2014/03/31 and Tax code A1 (5%)

     T-Code: VK11 (Creation of condition records)

     Maintain Valid on date - 04/01/2014 to date 12/31/9999 and New Tax code A2 (8 %).

     Action Points – Transaction Data

     A) If any Sales Order is to be created before 1st April, 2014 with consumption tax as 8 % and the following process is to be follow:         

      Sales Order Creation: T-code: VA01

          • Before entering the material number, change the ‘Req. delv. Date ‘to actual delivery date.

            Let us take for example - On 04/02/2014, material is to be delivered to the customer.

          •  Now, you can enter Material No: quantity and other details at the line item.

     B) If any open Sales Order created before 1st April, 2014 with consumption tax as 5 % and delivery has not made , following steps has to be followed :

       T-code – VA02 - Sale order change:

      Before the change:

    After the change:

     • Manually change the ‘Reg. delv. Date’ and ‘first date ‘for each line item and save.

4. Shipment Cost:

Action Points Master data

Before change:

T-Code: TK12

     T-Code: TK11

     Maintain ‘Valid on ‘date - 2014/04/01 ‘To’ date 9999/12/31 and new Tax code V2 (8 %).

Please  find some of the important links for your needful about Japan consumption tax and hope this blog will helps to all.

IMP Link: https://websmp101.sap-ag.de/~form/sapnet?_SCENARIO=01100035870000000202&_SHORTKEY=01100035870000754660&_OBJECT=011000358700001267742012E

                                                 - Document End -

     Wish You All the Best.

Regards

Sudharsana Vamsi