SAP TAX INTERFACE AND BOLT-ON MAR

Understanding Plants Abroad Functionality in SAP and Impact with Tax Interface
PLANTS ABROAD: Plants abroad functionality is a dedicated configuration for companies in European Union where companies having plants in another European Nation. Plants abroad functionality can be activated to handle tax issues for companies that have VAT registration numbers in more than one country. For example, German company code has not only a German VAT registration number but also a France VAT registration number without having a sales organization in France but a plant (warehouse) instead in France for distribution purpose. Activation of Plants Abroad configuration ensures that VAT registration number correctly gets printed on documents like sales, purchases, invoices, correct VAT registration numbers being used for right tax calculation, stock transfers between plants get captured for intrastat reporting correctly. A basic purpose of this functionality to assign plants from different countries to one company code without a need of having sales organizations in the countries where plants are located and company is having VAT registration numbers in those countries where it is obligated to file VAT returns/European Sales Listings/Intrastat returns. So in short, why plants abroad is required and what it does: 1.To be used if you have plant/storage/warehouse location for shipment in the country other than the country of the company code and company is VAT registered in the plant/storage/warehouse location country. 2. To enable intrastat reporting and VAT on foreign VAT registration number 3. To enable intra-company and cross-border stock transfer. What happens in SAP after activating this functionality: 1. On the tax code properties, new field called Reporting Country gets added 2. Reporting Country field will appear on the selection criteria screen on the VAT return report and EC sales list 3. The VAT return report gets enhanced to show country specific currency for Reporting Country Plants Abroad and Cross-Border (Intracompany) Stock Transfer: Another big benefit of activating this functionality is to create plants abroad invoice (document type WIA) for stock transfers between foreign plant (warehouse in FRANCE) and domestic plant (warehouse in GERMANY). Since this is between two VAT registered entity (See the example above

company in Germany and Plant in France) GERMAN company needs to report VAT (Intracommunity acquisition of goods and reverse charge) and trade statistics (Intrastat and Sales Reporting). A plants abroad invoice created during stock transfer capture the trade statistics which can be used for reporting purpose, as well as this invoice will also capture VAT (Intracommunity acquisition of goods with reverse charge) for German company. A good thing about this dummy invoice is to have both AR (France Plant) and AP (German Company) in the same document so both VAT registered entity can do the reporting out of it in their respective country. Tax Interface (Bolt-On) and Plants Abroad Functionality: There is always a question whether Plants Abroad can be activated with bolt-on. Answer is no. Since bolt-on and tax interface only works when tax procedures are made jurisdiction code based, activation of plants abroad does not bring reporting country field to the tax code properties screen assigned to these tax procedures. So it deceive the purpose of plants abroad functionality. Configuring Plants Abroad Functionality to work with Native Tax Functionality (without bolt-on) : 1. The IMG path is SPRO-Financial accounting Financial accounting global settings Tax on sales and purchases Basic settings Plants abroad activate plants abroad. Tick the box with the question: Plants abroad activated?. 2. Enter the foreign VAT numbers. The IMG path is: SPRO-Financial accounting Financial accounting global settings Tax on sales and purchases Basic settings Plants abroad Enter VAT registration number for plants abroad. 3. Create tax codes in FTXP, where you need to complete the field reporting country in the properties of the new tax code. This means that you can use this tax code for the new VAT registration number/new reporting country. For in-depth configurations, use these OSS notes: You have to assign this tax code to two different tax procedures: namely the local tax procedure (TAXDE assigned to DE) or generic tax procedure TAXEUR. More information can be found on OSS notes: OSS note 63103: Explains logic regarding tax procedures if you are using plants abroad OSS note 1085758: Customizing for stock transports Oss note 850566: deactivate plants abroad for a particular company code. This is useful since activation of plants abroad activate this functionality for every country in the same client. Tags: Intrastat (http://saptaxinterface.wordpress.com/tag/intrastat/), About these ads (http://en.wordpress.com/aboutPlants Abroad (http://saptaxinterface.wordpress.com/tag/plants-abroad/), these-ads/) Stock Transfer (http://saptaxinterface.wordpress.com/tag/stock-transfer/), VAT (http://saptaxinterface.wordpress.com/tag/vat/) COMMENTS Leave a Comment CATEGORIES Uncategorized

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