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

Tasks to be completed when documenting an operation (from creation to publication)

 1. Enter the Title of the operation / page

2. Add the following Labels : 

    • Scope of applicability: ww, country_accounting 

    • Country or group of countries (if applicable): belux, china, france, italy, lam, nam, uk_ie, bulgaria, dach, netherlands, iberia, poland, latvia, australia, india, japan, south_korea, thailand, singapore

    • Unit and Domain according to the List of labels to be used in the Finance Service Line space

      • E.g. 1: WW Operation in Financial Accounting under domain "Central Finance Processes & Compliance":

        • Labels to be used: ww, financial_accounting, central_fin_proc_compliance


      • E.g. 2: France Operation in Financial Accounting:

        • Labels to be used: country_accounting, france, financial_accounting

          (for country operations, the Domain is always country_accounting)

3. Fill in all fields as described above

 4. Once the description of the operation is completed, ensure it is approved and published by launching the SBS-Finance approval workflow 



Domain: Country Accounting



Responsibility area: N/A


Table of contents 

By default the table of contents displays Heading 1 & Heading 2 (other levels can be added)



Scope

3. Remove the icon when not applicable

To be confirmed!

ERP

4. Remove the icon(s) when not applicable

To be confirmed!

Frequency

5. Remove the icon(s) when not applicable

 To be confirmed

References

6. Add the link to SAP transaction(s) (when it exists)


Forms

7. Insert the links accordingly and change the link text with the OP name


Attachments

8. Add the link to attachments or external links



To be filled! << >> To be filled!



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:

3. Tasks description

3.1. Responsibilities

SBS-BO will perform the postings on a monthly basis according to the SCMA, after all last CROCO operations have been run, 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 has to inform local accounting teams when VAT is posted or contact them in case of issue when performing the OP. 
Local accounting teams must answer to the requests of SBS-BO and to the updates of the OP if needed.

3.2. Process

3.2.1. List

3.2.1.1. Run following 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: 


You'll obtain this list, print it: 




Print this list and attach it to the posting. 

3.2.1.2 Run following 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). 


You'll obtain this list, print it: 

3.2.2. Posting of Monthly VAT- S_ALR_87012357

Step 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. 


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

 


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


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. 


Step 2 – Process the posting (for companies 4233 and 6044) 
Return to transaction S_ALR_87012357 by choosing  .
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.


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

 


Choose  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. 




Step 2 – Process the posting (for company 6294) 
Posting scheme: 


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 


Step 3 – 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 4.2.1 to the posting

3.3. 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 
We need to clear accounts 2411020000 and 2451020000 with transaction F-03. 


End of document.