Prerequisites

Before you perform the tasks in this section, you must:

1. Set up the relationship between an operating unit and a business unit or cost center.

2. Update the debit amount with AR information and the credit amount with the AP information at the recovery moment for the services in the F75I750 table.

3. Complete the order-to-cash and procure-to-pay cycles for the excise and service taxes.

4. Set up the credit distribution percentage.

5. Set up the combination of Tax Type and Excise Unit account information using the Excise Account Master Maintenance program (P75I306).

   The system retrieves account information for writing general ledger entries from the Excise Account Master table (F75I306).

6. Set up the combination of Tax Type and Excise Unit account information using the Excise Account Credit Redistribution Entry program (P75I3061).

   The system retrieves account information for writing credit general ledger entries from the Excise Account Master - Credit Redistribution table (F75I3061).

Before you apply advance service tax payments to liabilities:

• Post and pay vouchers that you created for advance service tax payments.

• Post the payment.

• Reclassify journal entries as necessary.

• Run the Supplementary TR6 program (R75I705) to update the Service Tax Cenvat File - 09 (F75I750), Advance Service Tax Balance File (F75I760), and Advance Service Tax Payment File (F75I754) tables.