NAZAR KHAN SAP FICO HNMPL

Input and Output Tax

Input tax (Purchase Tax) is levied on all types of purchases and output tax (Sales Tax) is
levied on all types of sales. Every country follow its own sales tax, purchase tax
procedure. In SAP when we post the Invoice we have the option to calculate the TAX
amount on Gross amount or a net amount of Invoice. There is a basic configuration for
Input and output Tax in SAP input Tax is on Purchases and Output is on Sales so Input
Tax become out Asset while Output Tax paid to Tax authorities is our Liability.

Configurations
1) Check Calculation Procedures
2) Assign country to Calculation Procedures
3) Define Tax Codes
4) Create GL Accounts
5) Maintain Automatic Postings

Procedure
Define Calculation Procedure
NAZAR KHAN SAP FICO HNMPL
NAZAR KHAN SAP FICO HNMPL

Assign Country to Calculation Procedure

NAZAR KHAN SAP FICO HNMPL

Define Tax Code

Tcode: FTXP
NAZAR KHAN SAP FICO HNMPL

Create G/L Accounts

FS00
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TAXCODE

TCODE OB40
NAZAR KHAN SAP FICO HNMPL