What is cash basis for VAT accounting in SAP FI-AA - Asset Accounting?

SAP Term: cash basis for VAT accounting

• Component: FI-AA

• Component Name: Asset Accounting

• Description: In cash-based VAT accounting, the liability for VAT arises only when you receive or make the payment or part of the payment. You post the VAT amount in proportion to the payment amount.

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• Key Concepts: 
  Cash basis for VAT accounting is a method of accounting for Value Added Tax (VAT) in SAP Financial Accounting (FI-AA) Asset Accounting. This method is based on the actual cash flow of the company, rather than the accrual basis of accounting. This means that VAT is only recorded when it is actually paid or received, rather than when it is invoiced or due. 
  
  How to use it: 
  In order to use cash basis for VAT accounting in FI-AA Asset Accounting, you must first set up the relevant accounts in the Chart of Accounts. You must also configure the relevant tax codes and assign them to the relevant accounts. Once this is done, you can enter transactions into the system and they will be automatically posted to the correct accounts based on the tax codes assigned. 
  
  Tips & Tricks: 
  When using cash basis for VAT accounting, it is important to ensure that all transactions are correctly coded and posted to the correct accounts. This will help to ensure that all VAT payments and receipts are accurately recorded and reported. 
  
  Related Information: 
  For more information on cash basis for VAT accounting in FI-AA Asset Accounting, please refer to SAP Help documentation or contact your local SAP support team.