Hello everyone,
I have seen on SCN that I'm not the only one wondering how to deal with the requirement of posting a reverse charge tax entry during the payment posting:
Malaysia GST Reverse charge at Payment
Not finding information issued by SAP directly if / how this requirement is covered, I opened a Customer Incident to gain clarification. In the meantime, I also prepared a functional specification which I will hand over to a developer in case no solution will be provided (on time).
Requirements definition for the user exit
- The user exit shall be called during the posting of the financial documents of the payment run
- The payment document shall be extended to debit input tax code TX and credit output tax code SR, the amounts balancing each other out.
- The calculation is based on the invoices which are grouped in a single payment; only tax code IS has to trigger this special treatment; this also means that if a payment is comprised of invoices where some match the given tax code and other(s) not, only the matching tax codes shall be considered. This configuration configuration shall be stored in a custom table.
- Concerning foreign currency: Valuation of the reverse charge tax lines will take the original local currency amounts
- A tax segment has to be created as well.
Configuration table
I prefer to store the tax codes in a configuration table, rather than hard-coding them in the user exit.
Tax codes TX and SR are set to 6 percent.
| Company Code | Invoice Tax Code | RC Input Tax Code | RC Output Tax Code |
|---|---|---|---|
| 0001 | IS | TX | SR |
Sample Invoices
Invoices to indicate that not necessarily all invoices being paid fall under the condition of the configuration table.
Sum of the invoices with tax code IS are 2850.00 USD / 6895.00 MYR.
| Company Code | Tax Code | Amount in doc. currency | Amount in local currency | FX rate |
|---|---|---|---|---|
| 0001 | IS | 1500.00 USD | 5020.00 MYR | 0.2988 |
| 0001 | IB | 600.00 USD | 2000.00 MYR | 0.3000 |
| 0001 | IS | 750.00 USD | 1875.00 MYR | 0.4000 |
| 2850.00 USD | 8895.00 MYR |
Expected posting and calculation
| Company Code | Account | Amount in doc. currency | Amount in local currency | Tax code |
|---|---|---|---|---|
| 0001 | (Vendor) | 2850.00 USD | 8895.00 MYR | |
| 0001 | (Cash) | -2850.00 USD | -8142.86 MYR | |
| 0001 | (FX diff.) | 0.00 USD | -752.14 MYR | |
| 0001 | (Input Tax) | 135.00 USD | 413.70 MYR | TX |
| 0001 | (Output Tax) | -135.00 USD | -413.70 MYR | SR |
Tax segment
| Account | Tax amount | Base amount | Tax code |
|---|---|---|---|
| (Input tax) | 413.70 MYR | 6895.00 MYR | TX |
| (Output tax) | -413.70 MYR | -6895.00 MYR | SR |
My questions to the readers
- Have you already received an answer from SAP if / by when a general solution can be expected?
- Do you agree with my understanding of the requirement?
- What do you think of the approach for this functional specification for a user exit? Would you approach the requirement differently, e.g. with a separate posting?
I am looking forward to your comments.
Best Regards,
Christoph