Business Place – SAP Documentation

Each business place has to prepare its own VAT returns and withholding tax returns.

An organizational unit in the system that represents a VAT registration of your company. If your company has offices across South Korea, for example, one in Seoul and one in Pusan, each office registers separately with its district tax office, and is assigned a separate VAT registration number.

Use

In the system, you create a business place for each of your VAT registrations. Then, whenever you post a document with a VAT item, you specify which of your business places the transaction involves. This way, all tax items are assigned to the appropriate business place, which means that each VAT registration can create separate tax returns. You can only assign a document to a single business place.

In the system, the business place is also used for withholding taxes, but only as part of the section code.

Customizing

Set up your business places in Customizing for
Financial Accounting
(FI), by choosing
 Financial Accounting Global Settings Taxes on Sales/Purchases Basic Settings South Korea
. If you use any applications from
Logistics
(LO), you can also assign each of your plants to a business place.

Enter your head office’s business place in Customizing for FI, by choosing
 Financial Accounting Global Settings Company Code Enter Global Parameters
. Select the company code you want, choose
Additional Details,
and enter the business place. You must enter the business place in capital letters.

Day-to-Day Activities

You must assign all documents that contain a VAT item to a business place. Sometimes you have to enter the business place yourself, sometimes the system proposes it for you:

• In accounting transactions, you enter the business place manually in the document header. When you save the document, the system automatically assigns the business place to all of the document’s line items.

• When you
  enter a vendor invoice
  in
  Logistics Invoice Verification
  (MM-LIV) or
  enter a customer invoice
  in
  Billing
  (SD-BIL),, the system automatically assigns the corresponding accounting documents to the business place assigned to the plant. (You make this setting in Customizing, see above).

   Note

  For technical reasons, there are a number of transactions that you cannot execute without entering a business place. The system automatically uses your head office’s business place.

  This happens when you post an asset acquisition or depreciation in
  Asset Accounting
  (FI-AA); when you post a goods receipt or a material document for a foreign plant in
  Materials Management
  (MM); when you settle an internal order or post a revenue recognition in
  Controlling
  (CO); or when you make a material ledger posting in
  Product Cost Controlling
  (CO-PC).

  End of the note.

Periodic Processing

Each business place creates its own tax invoices. In addition, each business place can execute its own payment run. The program then automatically assigns each payment to the correct business place.

Reporting

Each VAT registration is responsible for remitting all VAT and withholding taxes that it has collected, so each business place prepares its own tax returns. In some companies, the headquarters takes care of all tax remittance for all of its VAT registrations.

You can of course also use the business place for internal controlling purposes, if you require, for example, if you want a list of all documents assigned to a business place.