What is 'VAT perception' in SAP FI-CA - Contract Accounts Receivable and Payable?

VAT perception - Overview

• Component: FI-CA

• Component Name: Contract Accounts Receivable and Payable

• Description: A type of value-added tax VAT that arises when a certain limit, set by the tax authorities, is exceeded.

VAT perception - Details

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  Key Concepts: 
  VAT perception is a process in the FI-CA Contract Accounts Receivable and Payable component of SAP that allows companies to collect Value Added Tax (VAT) from customers. This process is used to ensure that the company is compliant with local tax regulations. 
  
  How to use it: 
  In order to use VAT perception, companies must first set up the necessary parameters in the system. This includes setting up the tax codes, tax rates, and other related information. Once this is done, companies can then enter customer invoices and the system will automatically calculate the VAT amount due. The company can then collect this amount from the customer. 
  
  Tips & Tricks: 
  It is important to ensure that all of the necessary parameters are set up correctly in order to ensure accurate calculations of VAT amounts. Additionally, it is important to keep track of any changes in local tax regulations as these may affect the accuracy of calculations. 
  
  Related Information: 
  For more information on VAT perception, please refer to SAP Help documentation or contact your local SAP representative.