What is 'capital yield tax proxy' in SAP FS-AM - Account Management?

capital yield tax proxy - Overview

• Component: FS-AM

• Component Name: Account Management

• Description: A mechanism for encapsulation that enables applications to calculate capital yield tax in another logical system. The capital yield tax is realized technically as an enhancement spot.

capital yield tax proxy - Details

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  Key Concepts: 
  Capital yield tax proxy is a feature of the FS-AM Account Management component of SAP. It is used to calculate the tax liability of a company based on the capital yield of its investments. The capital yield is the return on investment (ROI) that a company receives from its investments. The tax liability is calculated by taking into account the capital yield, the tax rate applicable to the investment, and any other applicable taxes. 
  
  How to use it: 
  The capital yield tax proxy feature in FS-AM Account Management can be used to calculate the tax liability of a company based on its investments. To use this feature, the user must first enter the details of the investment, such as the amount invested, the rate of return, and any applicable taxes. The user then enters this information into the FS-AM Account Management system and the system will calculate the tax liability based on these inputs. 
  
  Tips & Tricks: 
  When using the capital yield tax proxy feature in FS-AM Account Management, it is important to ensure that all relevant information is entered accurately. This includes not only the amount invested and rate of return, but also any applicable taxes. Additionally, it is important to keep track of any changes in tax rates or other applicable taxes as these can affect the calculation of the tax