Transfer of Balance of Deferred

Tax Accounts when There Is More

Than One Tax Line Item.

Applies to:
Any business organization having Deferred Tax Implemented. This is applicable from ECC 6.0. For more
information, visit the Enterprise Resource Planning homepage.

Summary
This article displays the process of transferring multiple tax line items by using program RFUMSV50 instead
of RFUMSV25.
Author: Suresh Kumar Reddy B.S
Company: Intelligroup Asia Pvt. Ltd.
Created on: 1st March 2010

Author Bio
Suresh Kumar Reddy B.S has done M.B.A with specialization in Finance and has more than 5 years
experience with SAP. Presently working with Intelligroup and has been part of FICO competency since
February 2005.

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

Table of Contents
Introduction ................................................................................................................................................... 3
Objective....................................................................................................................................................... 3
Business Requirement .................................................................................................................................. 3
Solution......................................................................................................................................................... 4
1. Procedure......................................................................................................................................... 4
1.1 Check Routine Number ........................................................................................................................ 4
1.2 Check Function Modules...................................................................................................................... 4
1.3 Active Country Version India for Specific Fiscal Years .......................................................................... 4
1.4 Define Procedures ............................................................................................................................... 5
1.5 Define Tax Codes for Sales and Purchases ......................................................................................... 7
Note: Create another Tax Code SA as copy of tax code DA without the option Target tax code. ................. 9
1.6 Define Deferred Tax Rules ................................................................................................................... 9
1.7 Assign Deferred Tax Rules to Company Codes.................................................................................. 10
1.8 Enter Vendor Invoice ......................................................................................................................... 11
1.9 Run Payment Program (Post Outgoing Payments) ............................................................................. 12
1.10 Deferred Tax Transfer ...................................................................................................................... 13
1.11 Batch Input: Session Overview......................................................................................................... 18
1.12 Display/Change Line Items (Deferred G/L Accounts) ........................................................................ 19
1.13 Conclusion....................................................................................................................................... 24
Related Content .......................................................................................................................................... 25
Copyright .................................................................................................................................................... 26

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

Introduction
As a solution provider you may have requirement to run program RFUMSV50 with multiple tax line items in
regard to Service Tax, Education Cess and Higher Education Cess.

Objective
The objective of this article is to explain step by step process for transfer of multiple tax line items by using
program RFUMSV50 instead of RFUMSV25

Business Requirement
Service Tax credit cannot be utilized unless the vendor invoice is paid. This is the reason till the payment is
done, the service tax amount will be accumulated in deferred tax account and once the invoice is paid, the
balance in deferred tax account need to be transferred to respective Service Tax, Educational Cess and
Higher Educational Cess accounts. There can be different business scenarios for full and partial payment .To
facilitates the transfer of such deferred balance to respective accounts; SAP has come up with a new
standard program RFUMSV50 instead of RFUMSV25. To overcome the limitation of this program i.e. not
able to take care of more than one tax line item, below the solution is provided with scenario “Full payment is
made for the vendor invoice”.

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

Solution
1. Procedure

1.1 Check Routine Number

Via Transaction Code VOFM

From menu, Select Requirements -> Pricing

1.2 Check Function Modules

Via Transaction Code FIBF/BF31

1.3 Active Country Version India for Specific Fiscal Years

Via Menus SPRO → Financial Accounting  Financial Accounting Global Settings  Tax on
Sales/Purchases  Basic Settings → India → Active Country Version India for
Specific Fiscal Years

Via Transaction Code -NIL-

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

1.4 Define Procedures

Via Menus SPRO → Financial Accounting  Financial Accounting Global Settings  Tax on
Sales/Purchases  Basic Settings → Check Calculation Procedure → Define
Procedures

Via Transaction Code -NIL-

Field Name R/O User Action and Values Comments

Specifies the conditions that are allowed for a

Procedure R TAXIN document and defines the sequence in which they
are used.

Descript O INDIA - VAT & Service Tax Description of the procedure

Select and double click on

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

Field Name R/O User Action and Values Comments

Number that determines the sequence of the

Step R 113
conditions within a procedure

Access number of the conditions within a step in

Counter R 0
the pricing procedure

Every calculation procedure groups several tax

types together into a condition types (for example,
CTyp R IDST Base Amount, output tax or input tax) in the
calculation procedure, and determines calculation
rules for it.

Description O Input Defrd Service Description of the condition type

If you specify a reference step at the same time,

the condition values of the steps specified are
Fro R 100 calculated. Percentage rate are calculated on the
basis of the Step. In this case, step 110 is
calculated on step 100.

The account key enables the system to post

AccKey R IDS amounts to certain types of account. Key identifies
the type of G/L account.

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

1.5 Define Tax Codes for Sales and Purchases

Via Menus SPRO → Financial Accounting  Financial Accounting Global Settings  Tax on
Sales/Purchases  Calculation → Define Tax Codes for Sales and Purchases

Via Transaction Code FTXP

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

Field Name R/O User Action and Values Comments

Services like training,

Description R Description of the taxable services
professional fee - Service

Tax Type O V Indicator for differentiating output tax and input tax.

The target tax code is filled for deferred tax codes.

However, it must not be a deferred tax code itself.
Target tax
R SA At the end of the period the tax amounts will be
code
transferred from deferred tax code to target tax
code.

Select

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

Field Name R/O User Action and Values Comments

Tax Percent. The tax rate gives the percentage rate for the
R 10.000
Rate corresponding Service Tax
Tax Percent. The tax rate gives the percentage rate for the
R 0.200
Rate corresponding Educational Cess
Tax Percent. The tax rate gives the percentage rate for the
R 0.100
Rate corresponding Secondary Educational Cess

Note: Create another Tax Code SA as copy of tax code DA without the option Target tax code.

1.6 Define Deferred Tax Rules

Via Menus SPRO → Financial Accounting  General Ledger Accounting  Business

Transactions  Closing → Report → Sales/Purchases Tax Returns → Deferred
Taxes → Define Deferred Tax Rules.

Via Transaction Code -Nil-

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

Field Name R/O User Action and Values Comments

Rule R 0001 Enter a four-character code of your choice.

The system generates a separate tax transfer

Document R Per Tax Code, without clearing document for all deferred tax items with the same
tax code.

1.7 Assign Deferred Tax Rules to Company Codes

Via Menus SPRO → Financial Accounting  General Ledger Accounting  Business

Transactions  Closing → Report → Sales/Purchases Tax Returns → Deferred
Taxes → Assign Deferred Tax Rules to Company Codes

Via Transaction Code -Nil-

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

Field Name R/O User Action and Values Comments

Company Code is a legal entity in financial

CoCd R 3302
accounting.

Company
R Company XXXX Private Ltd Name of the company Code
Name

Identifies the deferred tax rule and is assigned to

Rule R 0001
company code.

1.8 Enter Vendor Invoice

Via Menus SAP Easy Access → SAP Menu  Accounting  Financial Accounting  Accounts
Payable  Document Entry→ FB60 - Invoice

Via Transaction Code FB60

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

1.9 Run Payment Program (Post Outgoing Payments)

Via Menus SAP Easy Access → SAP Menu  Processes  Purchase Requisition through to
Payment  Payments  Automatic Payments→ F110 – Run Payment Program

Via Transaction Code F110

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

1.10 Deferred Tax Transfer

Via Menus SAP Easy Access → SAP Menu  Accounting  Financial Accounting  General
Ledger  Reporting → Tax Reports → General → Deferred Tax →
S_AC0_52000644 – Deferred Tax Transfer (New)

Via Transaction Code S_AC0_52000644

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

Field Name R/O User Action and Values Comments

The company code is an organizational unit within
financial accounting.
Company Code R 3302

The document number is unique per company

code and fiscal year. When entering an accounting
document, you can specify the number manually
Document or it can be determined by the system from a pre-
Number
O 1100000337
defined area (number range).

Input the year to be extracted from deferred tax

accounts.
Fiscal Year R 2009

The document number is unique per company

code and fiscal year. When entering an accounting
document, you can specify the number manually
11.09.2009 to or it can be determined by the system from a pre-
Time Frame R
11.09.2009 defined area (number range).

The tax code represents a tax category which

must be taken into consideration when making a
Tax Code O DA tax return to the tax authorities.

Alphanumeric key uniquely identifying the

document.
Vendor O A8871

This has the effect that tax items are selected

irrespective of whether they contain the date or
time of a previous run. The tax items selected are
Type of Run R Do not Update not marked with the date and time of current run
either.

The date of the currency on which transfer takes

Currency place from deferred tax to service tax.
R Transfer Posting Date
Translation

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

Select button

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

Select button

Field Name R/O User Action and Values Comments

This has the effect that only those tax items
for updating the tax return are selected in
which no date or time of an earlier run is
Update noted.
Documents: R Select Radio Button
The date and time of the current run are then
Update Run
marked in the tax items selected.

Posts the deferred taxes from the interim tax

account to the normal tax account and clears the
amount from the interim tax accounts. The tax
Post Via Batch transfer documents are created in batch input
Input Session R Select Check Box session.
Batch Inp. Sess. R RFUMSV50_1
Name The program database is updated only if the tax
transfer document posting is successful.

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

Select button

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

1.11 Batch Input: Session Overview

Via Menus SAP Easy Access → SAP Menu  Processes  Accounting  Periodic Processes 
SM35 - Batch Input Process

Via Transaction Code SM35

Select Session

And select

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

Select option and select push button

Select button

1.12 Display/Change Line Items (Deferred G/L Accounts)

Via Menus SAP Easy Access → SAP Menu  Accounting  Financial Accounting  General
Ledger  Account → FBL3N – Display/Change Line Items

Via Transaction Code FBL3N

Field Name R/O User Action and Values Comments

G/L account R 127124, 127125, 127126 Account number of the G/L line item display
The company code is an organizational unit within
Company Code R 3302
financial accounting
Displays Items that were Cleared at the clearing
Cleared Items R Select Radio Button
date
The opening date specifies as from when the item
Clearing date R 11.09.2009
is to be regarded as cleared.

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

Select

Input the deferred tax accounts and Select button

Select button to display vendor open items

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

Select button

Field Name R/O User Action and Values Comments

G/L account R 127121, 127122, 127123 Account number of the G/L line item display.
The company code is an organizational unit within
Company Code R 3302
financial accounting
Displays Items that were Cleared at the clearing
Cleared Items R Select Radio Button
date
The opening date specifies as from when the item
Clearing date R 11.09.2009
is to be regarded as cleared.

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

Select

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

Select

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

Select button

From above screen shots the deferred tax amounts have been transferred from G/L Codes 127124,
127125 and 127126 to 127121, 127122 and 127123.

1.13 Conclusion
From the above configuration and transactional screen shots, the balance of deferred tax can be transferred
with more than one line item by using program RFUMSV50. The transferred balance can be captured in
separate G/L accounts like Service Tax Credit, Service Tax Educational Cess and Service Tax Higher
Educational Cess.

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

Related Content
http://help.sap.com/erp2005_ehp_04/helpdata/EN/12/9650d041b04b619f613165c98623dd/frameset.htm
For more information, visit the Enterprise Resource Planning homepage.

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 Transfer of Balance of Deferred Tax Accounts when There Is More Than One Tax Line Item.

Copyright
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