Different implications of Plant Abroad and Alternative Local Currency in Tax on Purchase/Sales

Sometime, local currency and tax reporting currency are different ones. For example, companies in Cambodia trade only in USD. However, their tax reporting is still done in KHR. By default, SAP tax report RFUMSV00 (transaction S_ALR_87012357) generates only information for first local currency, even if your company code has implemented multiple currencies concept. Let’s say, the company code currency is USD, then without any additional setting, RFUMSV00 generate report in USD.

There are 2 approaches to have second local currency for tax report: Plant Abroad and Alternative Local Currency. What are the differences between these 2:

Plant Abroad	Alternative Local Currency
Generate historical value	Generate translated value
Fixed by Reporting Country	Unlimited number of currencies can be supported
Country report currency to be configured	Allowed alternative currencies to be configured
Introduce new field FTXP called “Reporting Country”. This field need to be maintained for all tax codes. Otherwise, Search help function (F4) in posting screen returns no tax code.	No impact on existing tax codes
Effective with posting entered after configuration	Effective with all transactions

 

These are independent configuration and can be activated in parallel.

Detailed screens

Activate Alternative Local Currency for Advance Tax Return (Activate Plant Abroad)

IMG path: Financial Accounting (new) -> Periodic Processing -> Report -> Sales/Purchases Tax Returns

 

Country setting for “Sites Abroad”

FTXP screen field

 

Specify Alternative Local Curr. for Sales/Purch. Tax Return (for the 2nd option)

IMG path: Financial Accounting (new) -> Periodic Processing -> Report -> Sales/Purchases Tax Returns

 

Tax report program