Configuring FBT - Tax Administration

Objective

After completing this lesson, you will be able to configure FBT in the Tax Administration tool.

Permissions

The bulk of FBT configuration is completed in the Tax Administration tool. A separate role, Fringe Benefits Tax Administrator, is required to perform these configurations. The Tax Administrator role is not required for FBT, so you can segregate those duties if you wish.

FBT Configuration

Each piece or row of an FBT configuration is a combination of settings that tell the system when FBT is and is not applicable and how that FBT should be entered into your financial systems.

Index #	Field	Description
1	Ledger	Select the name of the Ledger to which the accounting information should map. Use the Ledger that your Australian users are linked to. If you have more than one active Ledger for your Australian users, you must create configurations for each of those Ledgers.
2	Expense Type	This column is used to select the Expense Type that this configuration applies to. It is a good practice to create at least one row for each Expense Type that requires attendees. If you add new Expense Types to your configuration over time, you must remember to add them to your FBT configurations, as needed.
3	Attendee Type	This column is used to select the Attendee Type that this configuration applies to. Configuration for Attendee Types is all or none: either create a configuration for all Attendee Types or none of them. SAP Concur recommends creating a configuration for all Attendee Types. If you add new Attendee Types to your configuration over time, you must remember to add them to your FBT configurations.
4	Attendee Status	Use this field to indicate if this configuration applies to attendees that are traveling or not traveling. Important: Set this field to Not Traveling/Not Applicable for all Attendee Types except Employee. Note If you are using the Attendee Type method, you should set this to Not Traveling/Not Applicable for all configurations.
5	Foreign or Domestic	Use this field to specify if this configuration applies to foreign or domestic expenses.
6	Account Code	Enter the Account Code the system will use for this configuration. The Account Code is something your financial system will recognize and use to post this expense. This Account Code overrides the values set in the Accounting Administration area.
7	Reclaim Code	If your system requires it, enter the Reclaim Code used for this configuration. This is a value that your financial system will recognize. This Reclaim Code overrides the values defined in the Tax Administration tools.
8	Reset Reclaim Amount to Zero	When activated, this setting overrides any reclaim amount calculated in the Tax Administration tools and sets it to zero.

Best Practices

For Attendee Types that represent non-employees, the best practice is to configure one row for each combination of Ledger, Expense Type, Attendee Type, Foreign or Domestic, Account Code, and Reclaim Code.
If you are using the Attendee Status method, always set the Attendee Status to Not Traveling/Not Applicable for all non-employee Attendee Types.

For most business scenarios, this will result in two configuration rows for each Attendee Type:

The Non-Employee Attendee Type Configuration example is displayed.

For Attendee Types that represent employees, the best practice is to configure one row for each combination of Ledger, Expense Type, Attendee Type, Foreign or Domestic, Account Code, and Reclaim Code.
If you are using the Attendee Types method, always set the Attendee Status to Not Traveling/Not Applicable for ALL Attendee Types.
If you are using the Attendee Type method, this will result in two configuration rows for each Attendee Type, similar to the image above.

If you are using the Attendee Status method, this will result in four configuration rows for each Attendee Type:

The Employee Attendee Type Configuration example is displayed.

Scenario: Configure FBT When Using the Attendee Status Method

You have begun configuring FBT for your site and are midway through the process of configuring the logic around the Entertainment - Clients expense type. You are at a point where you must define the FBT configuration for the Employee and Contractor attendees.

Steps

Access the Tax Administrator Tools.
Select Tax Administration from the Expense Admin tools.
Access the Fringe Benefits Tax Tools.
Select the Fringe Benefits tab.
Update the Account Code.
Type the customer's account code in the Account Code field for all of the Entertainment - Clients and Employee rows.
Note
If these rows do exist in your site, you must use the New button to create them.
Update the Reclaim Code.
1. Type the customer's reclaim code in the Reclaim Code field for all of the Entertainment - Clients, Employee, and Domestic rows.
2. Select the Save button.
Create a New Configuration.
Select the New button.
Add the Domestic Configuration for the Contractor Attendee Type.
1. Define the fields:
  1. Ledger = SAP
  2. Expense Type = Entertainment - Clients
  3. Attendee Type = Contractor
  4. Attendee Status = Not Travelling/Not Applicable
  5. Foreign or Domestic = Domestic
  6. Account Code = 6050901
  7. Reclaim Code = GST-CE
  8. Reset Reclaim Amount to Zero = Cleared
2. Select the New button.
Add the Foreign Configuration for the Contractor Attendee Type.
1. Define the fields:
  1. Ledger = SAP
  2. Expense Type = Entertainment - Clients
  3. Attendee Type = Contractor
  4. Attendee Status = Not Traveling/Not Applicable
  5. Foreign or Domestic = Domestic
  6. Account Code = 6050901
  7. Reclaim Code = leave blank
  8. Reset Reclaim Amount to Zero = Cleared
2. Select the Save button.

Result

FBT for Entertainment - Clients expenses has been configured. You will need to repeat these steps for all combinations of expense types and attendee types.

After you have completed your FBT Configurations, you can make sure users have the ability to indicate if the Employee attendees were traveling or not.

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