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<ManualTopic ID="/baanerp/tc/onlinemanual/000138" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">To adjust tax for deductions</Title>
		<Keyword><Level1>Tax adjustments</Level1>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>If you create a sales invoice, the tax amount is calculated and posted to the tax ledger account. The tax calculation is based on the invoice amount.</Paragraph>
		<Paragraph>If the payment amount differs from the invoice amount due to a discount, the deduction of late payment surcharges, or payment differences, SSA ERP can adjust the tax amount.</Paragraph>
		<ProcedureList><ListIntro>To set up tax amounts adjustment, use the following sessions:</ListIntro>
			<ListItemHead><GUIRef href="/baanerp/tf/cmg/tfcmg0100s000" role="session">CMG Parameters (tfcmg0100s000)</GUIRef>
			</ListItemHead>
			<ListItem><List><ListItem>Select the <GUIRef href="/baanerp/tf/cmg/tfcmg0100s000#tfcmg000.avat" role="formfield">Adjust Tax for Deductions</GUIRef> check box. SSA ERP calculates the tax adjustment amounts based on the discount amount, the deducted late payment surcharge, or the accepted payment difference.</ListItem>
					<ListItem>In the <GUIRef href="/baanerp/tf/cmg/tfcmg0100s000#tfcmg000.dedu" role="formfield">Ledger Account for Deductions by</GUIRef> field, select <GUIRef href="/baanerp/tf/domains/cmg.dedu#vatcode" role="enum">Tax code</GUIRef> to specify the ledger accounts for the tax adjustments for each tax code and country combination or select <GUIRef href="/baanerp/tf/domains/cmg.dedu#group" role="enum">Financial BP Group</GUIRef> to specify the ledger accounts for each financial business partner group.</ListItem>
				</List>
			</ListItem>
			<ListItem><List><ListIntro>Depending on your selection, specify the ledger accounts for the tax adjustments in one of the following sessions:</ListIntro>
					<ListItemHead><GUIRef href="/baanerp/tf/cmg/tfcmg0150m000" role="session">Posting Data for Tax Deductions (tfcmg0150m000)</GUIRef>
					</ListItemHead>
					<ListItem>Specify the ledger accounts for the current financial company.</ListItem>
					<ListItemHead><GUIRef href="/baanerp/tf/acr/tfacr0110m100" role="session">Accounts by Financial BP Group (tfacr0110m100)</GUIRef>
					</ListItemHead>
					<ListItem>Specify the ledger accounts for the financial business partner group.</ListItem>
				</List>
			</ListItem>
			<ListItem>In the <GUIRef href="/baanerp/tf/cmg/tfcmg0146s000" role="session">Posting Data by Bank/Payment Method (tfcmg0146s000)</GUIRef> session, select the step at which SSA ERP calculates and posts the tax adjustment.</ListItem>
		</ProcedureList>
		<ExampleSection><SectionTitle>Example</SectionTitle>
			<List><ListIntro>Assume ou create a sales invoice with the following details (all ammounts are in EUR):</ListIntro>
				<ListItem>Invoice number: ACR20050001</ListItem>
				<ListItem>Amount : 5000</ListItem>
				<ListItem>Tax country/code : NL/001</ListItem>
				<ListItem>Tax amount : 700</ListItem>
				<ListItem>Late payment surcharge : 100</ListItem>
				<ListItem>Discount : 200</ListItem>
				<ListItem>Due date : 10/06/2005</ListItem>
			</List>
			<Paragraph>In this example, the tax amount is calculated on the gross amount of EUR 5,000, which includes the late payment surcharge and the discount.</Paragraph>
			<List><ListIntro>If the invoice is paid before the due date, at the time of receipt you have the following details:</ListIntro>
				<ListItem>Received amount : 4700</ListItem>
				<ListItem>Late payment surcharge : 100</ListItem>
				<ListItem>Discount : 200</ListItem>
			</List>
			<Paragraph>The business partner only paid EUR 4,700, but, at the time of the invoice, you calculated the tax on the total gross amount (EUR 5,000). This implies that you unnecessarily calculated tax on EUR 300 (the sum of all deductions).</Paragraph>
			<Paragraph>With the <GUIRef href="/baanerp/tf/cmg/tfcmg0100s000#tfcmg000.avat" role="formfield">Adjust Tax for Deductions</GUIRef> field, you can determine whether you want to adjust the tax on the deductions. If you choose to deduct tax, SSA ERP creates a reversal entry for the tax on the deductions amount of EUR 300, that was posted at the time of the invoice creation.</Paragraph>
		</ExampleSection>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/tc/onlinemanual/000033" role="manual">To use tax codes</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tf/onlinemanual/000127" role="manual">Tax calculation</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
