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Purpose

The purpose of this page is to clarify the customizing and usage Separate VAT Accounting. Two examples are described in this article: an example of VAT separation of for incoming invoices without link to export and an example of VAT separation for incoming invoices which were linked to the export invoice (a part of export was confirmed, the rest was expired and then confirmed).

Before reading this page to be familiar with export confirmation process please review SAP WIKI: Export Confirmation

The old version of WIKI: Export Confirmation and Separate VAT Accounting

"Image/data in this KBA is from SAP internal systems, sample data, or demo systems. Any resemblance to real data is purely coincidental."

Overview

Separate VAT accounting is used when you perform both taxable and tax-free operations related to value-added tax (VAT).

At the end of period transaction J3RSVATCOEFF is used to maintain the separate VAT coefficients.

Transaction J3RSSEPINCVAT (program J_3RSSEPINCVAT) / Fiori app “Separate Input VAT” reads separate VAT coefficients to define how much input VAT should be calculated for each of the three possible operation types: normal, VAT-free or 0% percent.

Transaction J3RSLINKEXPINV (program J_3RSLINKEXPINV) is used to link outgoing 0% export invoices to the incoming invoices that were collected in the input VAT part during input VAT separation.

Secondary events (export confirmed on time “”, export not confirmed “03”, export confirmed late “08”) can be created via transaction J3RSCONFIRMEXPORT (program J_3RS_EXPORT_CONF).

VAT transferring can be done using transaction J3RFUM26 (program J_3RFUM26) / Fiori app “Secondary Events”.

Transaction J3RFSEPVAT_MASSREV (program J_3RF_SEPVAT_MASSROLLBACK) can be used for mass reversal of tax transfer documents posted for Separate VAT Accounting.

Below there is a scheme with VAT Separation for three possible operation types:

If VAT Separated only into two parts (without 0%, in other words, there is no part related to Export), then scheme will be simpler (it can be found below in the chapter Example of VAT Separation without 0% VAT related to export)

How to check that the last version of Separate VAT Accounting is being used

Minimal requirement:

  • SAP ERP 6.0 Release 617 Support Package 04 and higher
  • SAP S/4HANA all versions
  • business function FIN_LOC_CI_40 should be activated. For more details refer to the SAP Note: 1965805- "FIN_LOC_CI_40 Protect the core Russia 2013"

To be sure that the last version of Separate VAT Accounting solution is being used please implement all Notes relevant for your system’s Support Package using as search terms names of transactions and programs mentioned earlier and recommendations from the KBA:  2383765 - "SAP RU-FI, UA-FI, KZ-FI: How to find full list of Notes with restriction by SP on ONE Support Launchpad"

Customizing of tax codes

In transaction OBCG (the view V_T007K) for Grouping Version UNDF VAT Code(-s) for incoming invoices should be customized:

The same tax code should be assigned in OBCG (the view V_T007K) for Grouping Version SHP:

In the view J_3RTSE_CODE two target codes for incoming VAT with UNDF Tax Group Version (2Q) not related to export should be maintained for error code “Used in Separate VAT”:

In the view J_3RTSE_CODE_EXV target codes for incoming VAT should be maintained for respective outgoing VAT code with EXPT Tax Group Version (L0) and incoming VAT code with UNDF Tax Group Version (2Q):

The line for event “0% operations, confirmed” is optional, if it is missed, then data will be taken from the target code from FTXP transaction.

All these tax codes have the same tax rate as deferred tax code with UNDF Tax Group Version (2Q).

Example of VAT Separation without 0% VAT related to export

In the below example VAT of two incoming invoices will be separated into two parts: VAT free, Normal VAT. Without 0% part linking to the export invoice is not needed and scheme will be simple:

Incoming invoices were posted with VAT code from UNDF tax grouping version:

At the end of reporting period coefficients for VAT separation should be maintained via transaction J3RSVATCOEFF:

Note that the field VAT Period (MONAT) is calendar period. In the current example 6 is June even if shifted fiscal year is used.

The field First Month in Quarter (FSTQTMON) specifies the first month in the current quarter of this fiscal year, for which separate VAT accounting is being performed. If you use the quarter as the fiscal period, the coefficient value for the first month in the quarter. In the database table where the coefficients (J_3RSSEPVATCOEF) are stored, the entries for the other two months in this quarter remain empty. You cannot change the table values for the second or third month in a quarter; you can only edit the value for the first month. If you perform separate VAT accounting on a monthly and not a quarterly basis, the system displays "0" in this field.

To separate the amount of input VAT from incoming invoices for materials purchased for undefined operations transaction J3RSSEPINCVAT (program J_3RSSEPINCVAT) / Fiori app “Separate Input VAT” should be run.

Only invoices with VAT Grouping Version UNDF will be selected for separation input VAT.

If the check-box “Split Invoice 3 Prts” is not active (total VAT amount of all incoming invoices will be split invoices will be grouped and then separated). After selection invoices press the button “Separate Input VAT”:

If the check-box “Split Invoice 3 Prts” is active (VAT from each incoming invoice will be split). In the current example VAT from each invoice will be split into two parts:

After VAT separation tax transfer documents can be posted via J3RFUM26 (target tax codes will be taken from J_3RTSE_CODE for N- and F- parts):

In the current example for each incoming invoice two tax transfer documents and one clearing document will be posted.

The field “Reference Document Number” (BKPF-XBLNR) will be filled with number and year of incoming invoice and with letter: F – VAT-free part, N – Normal VAT part:

Since the amount of input VAT calculated for VAT-free operations is included in the cost of materials, in VAT Return input VAT for normal operations can be included.

Example of VAT Separation into three parts (with link to Export invoice). Export confirmed

In the below example VAT of each of three incoming invoices will be separated into three parts: VAT free, Normal VAT, 0% VAT.

This example differs from the previous one: 0% VAT part must be linked with the export invoice. For the detailed description of export invoice creation and the whole process of export confirmation refer to the WIKI Export Confirmation. In the current chapter incoming VAT will be described.

Three incoming invoices have been posted for 2Q tax code: 1900000767, 1900000768, 1900000769. All of them will be used in VAT separation.

VAT has been separated (VAT of each incoming invoice was split into three parts):

Document chain for export have been created. Two export invoices 100021678 and 100021679 were posted in FI:


Transaction J3RSLINKEXPINV (Program J_3RSLINKEXPINV) / Fiori app “Link Outgoing 0% Invoices” should be run to link input VAT related to 0% VAT to export invoices. After selection of export invoices, press the button “Link” to link them to incoming invoices and save changes:

Export has been confirmed only for the first invoice 100021678 (for more details how to confirm export please refer to the WIKI Export Confirmation).

Tax transfer documents can be posted via transaction J3RFUM26 (Fiori app “Secondary Events”):

To see incoming invoices linked to the export invoice, select respective line and press “Linked Invoices” button.

During one run of J3RFUM26 several tax transfer documents can be posted:

  • Tax transfer document for VAT Base for export invoice (for more details please refer to the WIKI Export Confirmation)
  • Tax transfer documents for incoming invoices, VAT related to VAT-free and Normal VAT operations (for more details please refer to the previous example in the chapter Example of VAT Separation without 0% VAT related to export)
  • Tax transfer documents for incoming invoices linked to export invoice (after export operation confirmation input VAT related to export operations can be deducted and reflected in VAT Return)

Below you can see tax transfer documents posted for incoming invoices linked to confirmed export invoice. The field “Reference Document Number” (BKPF-XBLNR) is filled with number and year of incoming invoice and with letter: Z – 0% operations:

Resulted input VAT related to export operations can be deducted and reflected in VAT Return.

Example of VAT Separation into three parts (with link to Export invoice). Export not confirmed and confirmed late

In the next example algorithm related to unconfirmed export will be described. The same incoming VAT invoices will be used, VAT has been separated and linked to export invoice earlier:

Two incoming invoices (1900000767, 1900000768) were linked to export invoice 100021679. For export invoice 100021679 secondary event 03 “Export not confirmed” has been created.

Tax transfer documents can be posted via transaction J3RFUM26 (Fiori app “Secondary Events”). To see incoming invoices linked to the export invoice, select respective line and press “Linked Invoices” button:

Target tax code for incoming invoices will be taken from the view J_3RTSE_CODE_EXV.

During one run of J3RFUM26 several tax transfer documents can be posted:

  • Tax transfer document for export invoice (for more details please refer to the WIKI Export Confirmation)
  • Tax transfer documents for incoming invoices linked to export invoice with unconfirmed export

Below you can see tax transfer documents posted for incoming invoices linked to export invoice with unconfirmed export. The field “Reference Document Number” (BKPF-XBLNR) is filled with number and year of incoming invoice and with letter: Z – 0% operations:

Resulted input VAT related to export operations can be deducted and reflected in VAT Return.

After registration of Export Customs Declaration or Import Notification for export, which was unconfirmed earlier, secondary event 08 “Export confirmed late” can be created (for creation such type of secondary event use Transaction J3RSCONFIRMEXPORT (report J_3RS_EXPORT_CONF) / Fiori app “Export Confirmation (Russia)” (for more details please refer to the SAP WIKI: Export Confirmation)

Then tax transfer documents can be posted using transaction J3RFUM26 (report J_3RFUM26) / Fiori app “Secondary Events”. Target tax code for incoming invoices will be taken from the view J_3RTSE_CODE_EXV for the event “Export confirmed late” for the respective Company Code, outgoing tax code (which was used in export invoice) and incoming tax code (which was used in incoming invoices):

During one run of J3RFUM26 several tax transfer documents can be posted:

  • Tax transfer document for export invoice (for more details please refer to the WIKI Export Confirmation)
  • Tax transfer documents for incoming invoices linked to export confirmed late

Below you can see tax transfer documents posted for incoming invoices linked to export confirmed late. The field “Reference Document Number” (BKPF-XBLNR) is filled with number and year of incoming invoice and with letter: Z – 0% operations:

Resulted input VAT related to export operations can be deducted and reflected in VAT Return.

Reversion VAT posted earlier

To reverse all documents posted for Separate VAT Accounting transaction J3RFSEPVAT_MASSREV can be recommended. This transaction allows to select all tax transfer documents related to the Separate VAT Run ID. Also, this transaction in non-productive mode can be helpful for review tax transfer documents posted for Separate VAT Run ID.

Related Content

Related Documents

SAP Help: Confirming Export Operations

SAP Help: Separate VAT Accounting

SAP WIKI: Export Confirmation

Old version of WIKI: Export Confirmation and Separate VAT Accounting

Related SAP Notes/KBAs

SAP Note: 2847009: New Export Confirmation Report

SAP Note: 2534484: Mass Reversal of Tax Transfer Documents for Separate VAT

SAP Note: 2677027: RU Separate VAT: new posting schema for late export confirmation

KBA: 2212900: SAP RU-FI: How to deal with incoming credit memos in Separate VAT program

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