Configuring Object-based Tax

The diagram shows the overall configuration for object-based billing.

1. Create Contract Object Type - this is covered in precious lesion.
2. Create Revenue Type
3. Assign Contract Object Type to Revenue Type
4. FACTS configuration
5. Create Fact Category
6. Create Fact Type, Assign Fact Category to Fact Type and Assign Revenue Type to Fact Type.
7. Create Fact Set and Assign Fact Type to Fact Set
8. Assign Fact Set to Contract Object Type
9. Create BRFplus Application, Function, Ruleset, and Rules.
10. Assign BRFplus Function to Revenue Type.
11. Switch Off Check on Fact Type BILL if necessary.

For different kinds of objects, a revenue type should be created and assigned to the relevant tax period keys. The revenue type is connected with the corresponding contract object type.

The following configuration is required for revenue type.

1. Define Revenue Type - Configuration Path: Financial Accounting → Contract Accounts Receivable and Payable → Basic Functions → Define Revenue Type
2. Assign Revenue Type to Tax Period - Configuration Path: Financial Accounting → Contract Accounts Receivable and Payable → Basic Functions → Define Revenue Type
3. Assign Revenue Type with Period Key To Tax Object Type - Configuration Path: Financial Accounting → Contract Accounts Receivable and Payable → Basic Functions → Contract Object → Number Ranges and Contract Object Types → Assign Contract Object Type to Revenue Type

The configuration for fact category and fact type is as follows,

1. Define Fact Category: this is the smallest unit of fact. You can define Fact category ID, Description, Qualifier field and Search Help.
2. Define Fact Type: Each fact type contains information that is relevant for a certain aspect of taxation of an object. For each fact type you can assign a function module that checks entries made on the fact maintenance screen.
3. Assign Fact Category to Fact Type

Those configurations can be defined in configuration path: Financial Accounting → Contract Accounts Receivable and Payable → Basic Functions → Facts.

The configuration for the fact set is as follows,

1. Define Fact Set Attribute: it can set the fact set as time dependant.
2. Assign Fact Type to Fact Set: it can set the fact type assigning to the fact set as time-dependent and support multiple values.
3. Assign Revenue Type to Fact Set/Fact Set Sequence.

Those configurations can be defined in configuration path: Financial Accounting → Contract Accounts Receivable and Payable → Basic Functions → Facts → Define Fact Set.

BRFplus application, functions, and main context can be created by the Object-Based Tax BRFplus Integration Manager (Transaction Code: BRFPLUS_MANAGER_OBT) in the configuration path: Financial Accounting → Contract Accounts Receivable and Payable → Business Transactions → Public Sector Tax Assessment → BRFplus → Define BRFplus Objects for Object-Based Tax.

The steps to create BRFplus rule configuration is as follows,

1. Create BRFplus Application by BRFplus Integration Manager.
2. Create BRFplus Function and Main Contents by BRFplus Integration Manager. Note that the Fact ValueContext has to be created by the BRFplus integration manager if you want to use the TRM Form Action to check the Fact Data.
3. Launch a BRFplus workbench by transaction BRFplus to model the Ruleset and Rules for the created BRFplus Function.

Other billing-related configuration:

• Assign BRFplus Application and Function to the Revenue Type with a specific period key
• Switch Off Check of BILL Fact Type: only switch off it if the Bill Fact Type is not used.

The configuration path: Configuration Path: Financial Accounting → Contract Accounts Receivable and Payable → Business Transactions → Public Sector Tax Assessment → Billing

Use case: The tax agent wants to create object-based billing periodically for vehicle tax. It requires to create the BRFplus rules used in the billing process. The formula of the billing amount is as follows,

• Calculate Billing Amount = Total Days of Period * Motor Vehicle Volume/100 * Emission Rate
• Total Days of Period = Days of Start Date and End Date
  • Start Date is the latest date between Vehicle Registration Date and Billing From Date
  • End Date is the Billing To Date if the Vehicle is not deregistered.
  • End Date is the earliest date between Vehicle Deregistration Date and Billing To Date
• Emission Rate is determined by Emission Class

The design of the BRFplus function shows in the diagram and is summarized as follows,

• Two Rules are created in the ruleset - one is to calculate the billing amount and one is to create a billing document based on calculated billing amount.
• The three formulas and one decision tables are created to calculate the billing amount.

In the BRFplus function, the context Motor Vehicle Fact Value is table type. It passes the contract object fact values when billing is executed. This context is created from the BRFplus integration manager. It shall refresh from the BRFplus integration manager if new fields are added into the fact.

The BRFplus function contains one ruleset, which defined two rules in sequence.

1. Calculate the taxable amount
2. Create a Billing document based on the taxable amount

In the rule Calculate Billing Amount, it calls the loop expression to go through all motor vehicle fact entries with motor vehicle engine type 10, calculate the bill amount of each entry and summarize the total bill amount. The loop expression calls the formula expression UPDATE_TAX_AMOUNT to calculate the bill amount.

The formula is accumulate of Billing Amount, which is equal to Total Days of Period * Motor Vehicle Volume/100 * Emission Rate. To calculate the total days of a period, it calls formula START_DATE to determine the period start date and calls formula END_DATE to determine the period end date. To determine the emission rate, it calls the decision table, which will decide the emission rate based on the emission class.

The TRM action is called to create an object-based Billing Document. It calls the method CREATE_BILLING_DOCUMENT of Class CL_FMCA_BRFP_OBT_PROCESS. The billing document header contains the master data information while the line item contains the tax liability amount. This action performs the data mapping between context information (for example, tax liability amount) and required information to produce the billing document. In this example, the following parameters are provided in the mapped parameters:

• Billing Header(IS_FKKINVBILL_H):
• Business Partner
• Contract Account
• Company Code
• Billing Items(IS_FKKINVBILL_I):
• Bill Amount
• Main Transaction
• Sub Transaction
• Relevant for Posting
• Relevant for Printing

Execute the individual billing run transaction FMCABILLI with option Invoicing and Posting Document and Display BRFplus Lean Trace. The billing, invoicing, and PSCD documents are created with the calculated amount with BRFplus.

If the lean trace is configured for the revenue type and it executed the single billing run transaction FMCABILLI with option Display BRFplus Lean Trace, the lean trace will be displayed as the billing run result. In our example, it shows the detailed steps with an interim value, for example, Start Date, End Date, Emission Rate, and Billing Amount.

The vehicle is deregistered on 01.10.2022. The contract object fact is updated and executed the billing adjustment.

The adjustment billing document is created which contains the following important information:

• In the billing document header, it has an adjusted billing document number, which refers to the original document which the adjustment is based on.
• In the billing items, it has two items.
• The first item with amount 0.11 is the new calculated billing amount.
• The second item with the amount 40.00- is the reversed item, which reverse the original document.

The invoicing and PSCD documents are created. The invoice document has two items derived from the billing document. The PSCD document has one consolidated item after auto account maintenance.