SAP Financial Accounting (SAP FI) Practice Exam

Where are taxes posted in a cross-company transaction?

1. At the receiving company code

2. With the originating company code

3. Only in the main company code

4. In the tax return submission

The correct answer is: With the originating company code

In a cross-company transaction within SAP Financial Accounting, taxes are posted with the originating company code. This is because the originating company code is responsible for generating the invoice or accounting entry that includes tax calculations based on its specific tax configurations and rules. The originating company code ensures that all relevant tax details are captured at the source of the transaction. When such transactions occur, SAP FI utilizes the tax configuration and codes of the originating company code to determine the appropriate tax amounts due, irrespective of the receiving company code. This method ensures that the correct tax is accounted for in compliance with local tax regulations while maintaining a clear audit trail from the source to the destination in the financial records. Other potential options might imply incorrect tax posting mechanisms, such as suggesting that the receiving company code or a main company code is responsible for taxes, which would not align with standard cross-company transaction processing practices in SAP. Furthermore, taxes involved in these transactions are typically not handled solely in the tax return submission phase, as they need to be accounted for immediately during the transaction processing to ensure accurate financial reporting and compliance.