Service Tax Accounting - Distribution

 Hello,

We have implemented GL, AR, AP, and PA along with the India Localization.  We do not have PO implemented therefore any Service Tax incurred on an AP invoice must be manually entered into the Service Tax – Manual Entry form.  The AR invoices generated from Projects all have Service Tax.

 

In the current setup, the Service Tax Regime is configured to post to a different GL account for interim liability/recovery and final liability/recovery.

 

At the end of the month, the service tax amounts between AP (amounts entered manually) and AR are netted together.  The recovery amount from the AP service tax reduces the liability amount incurred on the AR invoices.