1. Financial Management Fundamentals Implementation Guide
  2. Understanding Tax Amounts

Understanding Tax Amounts

Regardless of how your tax rules are set up, you must specify whether and how the system updates the Taxes table (F0018) with tax amounts. You can control whether the system updates tax amounts by setting the Update Tax File processing option in these versions of the General Ledger Post program:

  • General Ledger Post - Voucher Post (Version ZJDE0002)

  • General Ledger Post - Manual Payments (Version ZJDE0004 or ZJDE0005)

  • General Ledger Post - Invoice Post (Version ZJDE0006)

  • General Ledger Post - Cash Receipt Post (Version ZJDE0007)

Set the Update Tax file processing option for any other post program in the base software that uses these versions.

A value of 1 in the processing option updates the F0018 table for VAT or Use Tax only. A value of 2 updates the F0018 table for all tax amounts. A value of 3 updates the F0018 table for all tax explanation codes.

If you do not set the processing options correctly, the system does not update the applicable tax information in the F0018 table.

Note: When you enter transactions using the Journal Entries with VAT program (P09106), the system automatically updates the F0018 table. The system ignores the tax processing options that you set up for the post programs.

(GBR) In Great Britain, set up your tax rules so that the system does not calculate tax on the gross amount of a transaction. The system considers whether the transaction is eligible for a discount when it calculates tax for the transaction.