1. Objective and Scope

1.1. Objective of this Operation

The objective of this document is to explain how to post the monthly VAT "centralization" for LU VAT accounts for Luxembourg companies which can recover the VAT. We have to determine if we have a payable or a receivable towards the VAT administration. The amount in VAT account should be transferred to account 2411040038 (if the balance is a debit  amount to recover from the Luxembourg VAT administration) or account 245040038 (balance is a credit  amount to pay to the Luxembourg VAT administration). Please pay attention for company 6294 because the currency of the company is USD (not EUR) and VAT reclassification should be done with document currency EUR and with the historical rate for USD. 

Account 2411040038 - VAT/sales tax-centralization account LU 
Account 2451040038 - VAT/sales tax-centralization account LU

1.2. Scope

This operating procedure (OP) is valid for the following companies in Luxembourg: 

• 4233 - Solvay Finance S.A. (Luxembourg)
• 6044 - Solvay Hortensia
• 6294 - Solvay Luxembourg S.à r.l.
  

2. Definitions

See Finance Glossary:

• BFC

• CROCO (To be confirmed!)

• CAM

• SCMA

  SBS-BO (To be confirmed!)

  
  

3. Tasks description

3.1.

Responsibilities

Finance Operations will

SBS-BO will perform the postings on a monthly basis according to the SCMA, after all last CROCO invoices operations have been runposted, accounts D (customers) and K (suppliers) have been blocked, and before data have been sent to BFC. These posting should be done on D+2. SBS-BO Finance operations has to inform local accounting teams when VAT is posted or contact them in case of issue when performing the OPprocedure. Local accounting teams must

CAM must answer to the requests of SBS-BO of Finance operations and to the updates of the OP procedure if needed.

3.2.

I print the lists and perform the postings

3.2.1.

I run the SAP transaction S_ALR_87012284 (for companies 4233 and 6044)

• Choose variant LU VAT CHECK
• Change Reporting Year to the year of the month closing
• Change the reporting periods to the month of the closing
• Change the comparison year to the year of the previous month closing
• Change the Comparison periods to the month of previous month closing
• Save the variant

Example for company 4233 – closing period 09/2015: 

Image Modified

You'll obtain this list, print it: 

Image Modified
Image Modified

Print this list and attach it to the posting. 

3.2.

2. I run the SAP transaction FBL3N (for company 6294)

Select these 4 accounts: 

• 2411030038
• 2411020000
• 2451030038
• 2451020000 

Although the currency of this company is USD, we have to issue the VAT declaration in currency EUR. So we need to clear the 4 VAT accounts in USD and EUR (with the historical amounts in USD and in EUR). 

Image Modified

You'll obtain this list, print it: 

Image Modified

3.

3. I perform the posting of monthly VAT- S_ALR_87012357

1

) Determination of the Alternative Tax Payable Account 

Run following transaction - S_ALR_87012357 - Advance Return for Tax on Sales/Pur. 
Choose variant - LU-VATAUT 

A – Select the company that you want to perform the VAT calculation.
B – Very important the fiscal year must be aligned with the posting date.
C – General selection – Posting date choose the first day until the last day of the month that you are calculating.
D – Tax payable posting – The posting date must be the last day of the month of calculation.
E – Due date of the tax table – Leave by default the 20TH of the following month. 

Image Modified

After the selections press execute Image Modified .
Wait a few moments then you will retrieve the following message by the system 

Image Modified 

Choose Image Modified and the following report will appear and go down until you reach the last line. 

Image Modified

The VAT calculation is made in the last line of column C.

• • If the total in column C is positive it means that you have a receivable we must choose account 2411040038.
  • If the total in column C is negative it means that you have a debt we must choose account 2451040038.

In the example above the amount is positive 2093,34 it means that you have a receivable you must choose account 2411040038. 

2

) Process the posting (for companies 4233 and 6044) 

Return to transaction S_ALR_87012357 by choosing Image Modified .

Leave the selections already performed in Step 1 and go to the tab Tax payable posting and perform the following selections: 

A – Batch input session must be flag in order to create a posting session;
B – Alternative Tax Payable Account you must use the one that you found in Step 1. (In the example above the account was 2411040038).
C – Session name we must use the last 4 digits to identify the company that we are performing the posting.

Image Modified

After the selections press execute Image Modified .
Wait a few moments then you will retrieve the following message by the system: 

Image Modified 

Choose Image Modified and the system will process automatically the batch input session if the VAT accounts are open to. 
Check the job in transaction SM37 for the batch input. 

Image Modified

3) Process the posting (for company 6294) 

Posting scheme: 

Image Modified

The posting should be performed manually in FB41, in order to input both currency amounts (in EUR and USD). 
Reference document from 10/2015: 5010000161 

4) Identify the posting number and attach the print list

In order to see the posting created by the transaction go to SM35 and check the batch input log under you user. In company 6294, retrieve the document number that was manually posted.

We must attach the report retrieved in point

3.2.

to the posting.

3.

4.

I check if the VAT accounts are balanced

After having performed transaction S_ALR_87012357 and FB41, check if the balance of accounts 2411020000, 2411030038, 2451020000, 2451030038 for the closing month is zero on transaction FS10N. 
For 6294 check in company currency and in document currency currency.
We need to clear accounts 2411020000 and 2451020000 with transaction F-03. 

End of document.