How to Maintain Tax code in GL Account in SAP S4 HANA

How to Maintain Tax code in GL Account in SAP S4 HANA.

Go to T code: FS00.

We can assign Tax code to any GL Account. In this blog we are maintaining the Output Tax code: P1 in Other Expenses GL Account.

Expand Expenses, put the cursor on the GL Account and click on change icon.

Control Data Tab –

We can put conditions here like Allow only input tax, Allow only output tax, or Allow all taxes allowed or can give tax code directly like we gave above, etc..

Note:

• Tax Category -> Give P1 – Output Tax
• Posting without tax allowed – If we give check mark for this field, we are making Tax code as optional during transaction posting.

Click on save button.

Data saved successfully.

Note:

• Output Tax: It is the liability arising from the sale of taxable goods and services, payable to the government.
• Input Tax Credit: It is the tax paid on business purchases, eligible for deduction against output tax liability.

SAP Tax Configuration

• Calculation Procedure of Tax Procedure includes
  • How to Create Access Sequence Keys (OBYZ) in SAP S4 HANA: Click here
  • How to Create Condition Types (OBYZ) in SAP S4 HANA: Click here
  • How to Create Account Keys (OBCN) in SAP S4 HANA: Click here
• How to Create Tax Procedure (OBYZ) in SAP S4 HANA: Click here
• How to Maintain the Tax Procedure at Country Level (OBBG) in SAP S4 HANA: Click here
• How to Create Tax Code (FTXP) in SAP S4 HANA: Click here
• Assign GL Accounts to Account Key (OB40) in SAP S4 HANA: Click here
• How to Maintain Tax code in GL Account in SAP S4 HANA: Click here

SAP FICO Configuration topics:

• SAP Finance Enterprise structure: Click here
• SAP Finance GL Accounting: Click here
• SAP Finance Accounts Payable: Click here
• SAP Finance Accounts Receivable: Click here
• SAP Finance Bank Accounting: Click here
• SAP Finance New Asset Accounting: Click here
• How to Create a Controlling area in SAP: Click here
• SAP Controlling – Cost Element Accounting: Click here
• SAP Controlling – Cost Center Accounting: Click here