Deferred taxes in Mexico

Angel G. Reyes www.angelreyes.me 1

Deferred TaxesHow to use the SAP Deferred Taxes Function to handle VAT taxes in México


Deferred TaxesNormally, tax on sales and purchases is reported when an invoice is issued. The tax payable amount is calculated as the balance of the input and output taxes and cleared in the subsequent period. The tax for some transactions, however, can only be deducted on settlement. This is common in France (output and input tax) and Italy (input tax) and Mexico (output and input tax) .Usually, the transfer from deferred tax account to operative tax account it is done at month end closing.

WC

Invoice with Tax Code Relevant and a Payment

XCTarget Tax Code

At some time


GL Accounts pre-requisites• Tax Category Indicators– “<“ for input taxes– “>” for output taxes– “*” for 0% rate

• Open Item Management enabled

• Line Item Display


Tax Codes Configuration: Deferred & Target• Configure target code on

the deferred one• The target tax code it does

not need a target tax code or any other special config


Vendor Invoice


Payment & Cleared


Run Transfer Deferred Taxes (Tcode F.38)


Explanation & Parameters• This program automatically makes the

transfer posting for tax on sales/purchases periodically.

• Customer or vendor data and the respective clearing date are taken from the offsetting items

• To make the transfer posting for partial payments, the program creates a corresponding clearing item.

• The program differentiates between partial payments and credit memos. The transfer posting for the tax amounts proportionally allotted to credit memos is only made when all affected invoice items are cleared.

• Down payment clearings must be posted using SAP standard transactions.

• Partial payments can only be posted for one specific invoice at a time. If a partial payment affects several invoices, a separate document has to be posted for each invoice.

• Each payment transaction has to be posted separately, that is, several incoming or outgoing payments cannot be posted using just one document.

• One period must be specified for the clearing date. The parameter "Open items at key date" refers to the items in the account for deferred tax.

• To be able to assign the tax amounts properly, you have to post the invoice documents according to SAP conventions. If the program cannot process a document correctly, it will list the document in an error log.


Applicable Parameters for México• Creates two variants, one for input taxes

and another one for output taxes• Create one variant per currency• If “Items with 0%” checkbox, is selected,

transactions are listed in the report, but, nothing is transferred

• Set “always FB05”, with this option partial payments are cleared using “post with clearing” function

• Use “Doc.Hdr Text for Transfer Pstg” to indicate a common text for transfers, later on, it can be used as search criteria


Result of Deferred Taxes


Transfer Document Created


Scenario: Partial Payment


Scenario: Partial Payment

Business

Deferred taxes in Mexico