2. Purpose of Tax Code
Tax Rate Tax GL Account
Tax Code
Tax Code stores
both Tax GL
Account and Tax
Rate .
3. Go to normal Invoice
Accounting, choose the
vendor and the invoice
date & amount.
Invoice Posting with Input Tax
4. Fix the Tax Code you want by
checking “Calculate Tax” and enter
the line items i.e. Cost of Sales. It is
not possible to enter input tax, so it
won’t simulate.
Invoice Posting with Input Tax
5. To configure the GL Account for tax
code , go to “fs00”, put in the GL
account and click on “Change” and
go to “Control Data” and choose
“Tax Category”.
Invoice Posting with Input Tax
6. “Tax Category” allows or
disallows any Tax postings to
the GL Account. “-” means You
are allowed to put Input Taxes
to the GL Account.
“+” means only output taxes are
allowed. “*” means both are
allowed
Invoice Posting with Input Tax
7. In this case, we are
selecting “-”, so now we
can enter the input tax
for the GL Account and
simulate then.
Invoice Posting with Input Tax
8. Go back to Invoice Posting
screen, now when we try to put
tax code and then simulate, it
does not give error.
Invoice Posting with Input Tax
9. It is asking for “Tax Jurisdiction
Key” which means we have to
specify different tax rates for
different states.
Invoice Posting with Input Tax
10. Now after simulation, it is showing the
balance amount because it should
include the tax portion. This tax code
has got this amount set up in Tax
Jurisdiction code.
Invoice Posting with Input Tax
11. From SPRO, go to “Define Tax
Jurisdiction”, after entering work
area for that particular country, we
can see all Tax Jurisdiction Set up
for that country.
Invoice Posting with Input Tax
16. Invoice Posting with Input Tax
To know, What are the Tax Rates applicable to
the different Tax Regions/Jurisdictions,
From SPRO, go to Define Tax Code for Sales
& Purchase, enter the respective Tax
Jurisdiction for which you want to enter Tax
Rate and enter the validity date.
17. This GL Account is used by
the system to post the
computed Tax amount.
Invoice Posting with Input Tax
18. From SPRO, go to Define Tax
Accounts, The Account Key is
used to determine the GL Account.
Invoice Posting with Input Tax
19. This GL Account is used by
the system to post the
computed Tax amount.
Invoice Posting with Input Tax
20. Instead of the system computing the
tax itself, we can enter the tax details
manually. Uncheck Calculate Tax,
enter the Amount, Tax Amount, GL
Account and Tax Jurisdiction Code
and then post it.
Invoice Posting with Input Tax
