This tool can be used to identify SAP transactions subject to consumer use tax accrual. Automatic posting of consumer use tax accrual for selected transaction. Transactions subject to consumer use tax accrual:

·          Material movements (i.e. goods issue to cost center)

·          Relocation of large assets (accrual for jurisdictional tax difference)

·          Free-of-charge sales orders (promotional material)

·          Material consumption to fulfill all-inclusive service contracts

The standard SAP system does not provide for a mechanism to automatically calculate and post consumer’s use tax for the business processes listed to the left.

This DMA utility is a batch process, which analyzes SAP material documents, sales orders, service orders and asset masters. For each identified transaction, the following steps are performed:

·          Determine relevancy for tax accrual

·          Identify value of goods (raw material cost, purchase price or standard cost)

·          Identify place of consumption

·          Identify accrual jurisdiction

·          Calculate consumer use tax accrual amount

·          Generate consumer use tax accrual posting (journal entry which is reflected in the tax system audit file). Tax accrual posting references original consumption document (material document, sales order, etc)

The utility can be executed in ‘test’ mode, which allows a tax manager to review the proposed accrual postings prior to actually posting them.

Copyright 2002 TaxAutomation Inc.