Input Tax Correction

Period
The input tax correction includes the period from the first time the asset is used up to the end of the respective calendar year.

Input tax correction
In this phase, correct the input tax amounts of the acquisition/production costs for an asset,

Input tax distribution and account determination
If the composite rate of the calculation month differs from the composite rate of the previous month, the deductible input tax is recalculated. This input tax amount is balanced with the amount from the previous month. Posting records are automatically created for the balance.

Input Tax Distribution

Account Determination

- In this phase, the composite rate valid in the month of the posting date is used for the distribution.

- For each invoice, a correction posting is created for the resulting difference.

The non-deductible input tax is posted to the acquisition/production costs, that is the asset value increases or is reduced.

Phase transition
Phase 3: Input tax adjustment only begins

Base rate
The composite rate of the input tax correction valid in the last month (December) is defined as a base rate for Phase 3: Input tax adjustment.