Understanding the Service Tax Liability Reports

You run the Service Tax Liability Generation - Invoice report to generate service tax liability of invoices after you have performed the sales update. You will also use this report to generate service tax liability of A/R invoices that the Sales Update program creates. This report generates tax liability only if the service category code of the document line has been setup with the value of I in the Point of Taxation O2C process field of the Point of Taxation Setup program. The system retrieves this value from the F75I051 table.

Note: You generate tax liability for only those invoices that you have not collected even partially at the time you install this ESU.

You use the Reverse Service Tax Liability program to verify whether the service tax liability was accounted for an invoice and if yes, whether its payment was received within a specified period. If the payment was not received within a specified period, the Reverse Service Tax Liability program reverses the tax liability that the system generated on the invoice. You can reverse the tax liability for an invoice only once.