Skip to main content
Question

Calculated Tax in Travel Expense Module

  • September 14, 2026
  • 1 reply
  • 16 views
Do Gooder (Partner)
Forum|alt.badge.img

Hi Community,

 

Does anyone have experience setting up calculated tax in the Travel Expense module?

 

As far as I understand, it is only possible to set up the posting control TX2 – Travel Expense Tax. Unlike the INVOIC module, there do not seem to be equivalent posting controls for calculated tax such as IP9 – Tax Received, Calculated and IP10 – Tax Disbursed, Calculated.

 

I have assigned a tax code for calculated tax to an expense code in the Expense Rule view. However, when I create and post an expense sheet using that expense code, no tax voucher lines are generated, and no transactions are created in the Tax Transactions view.

 

This seems like a significant limitation for EU customers planning to use the Travel Expense module, as no tax voucher lines or tax transactions are created for VAT reporting purposes.

 

Any insights or workarounds would be greatly appreciated. Thanks in advance!

    1 reply

    Hero (Employee)
    Forum|alt.badge.img+9
    • Jane Perry
    • Hero (Employee)
    • September 14, 2026

    Hi Mike.  I found the following information which includes a workaround.  Please review the following and advise if you have any questions.

     

    In IFS Expense Management (TRVEXP), the inability to process Calculated Tax (Reverse Charge VAT) directly on travel expense sheets is a known functional design limitation of the standard Travel Expense posting engine.

    Root Cause: Why Calculated Tax Does Not Post in TRVEXP

    1. Posting Control Architecture:

      • Expense Vouchers (E-vouchers) generated from authorized expense sheets rely strictly on Travel Expense Posting Controls:

        • TX1: Travel Expenses (Debit / Expense Account)

        • TX2: Travel Expense Tax (Debit / Input Recoverable VAT)

        • TX3: Travel Expense Employee Claims (Credit / Payable to Employee)

      • TRVEXP does not have posting types equivalent to IP9 (Tax Received, Calculated) and IP10 (Tax Disbursed, Calculated), which exist only in the INVOIC / PAYLED / PURAP posting frameworks.

    2. Calculated Tax Engine Execution:

      • When a Tax Code defined as Calculated Tax (Reverse Charge) is assigned to an Expense Code in Expense Rule, the voucher posting routine for Travel Expenses does not invoke the calculated tax posting logic.

      • As a result, no debit/credit tax voucher lines are generated, and no records are written to the Tax Ledger (Tax Transactions view).

    1. Route Cross-Border / EU Service Expenses via Supplier Invoices (INVOIC)

    For business expenses that trigger EU Reverse Charge VAT (e.g., software subscriptions, foreign online services, or cross-border vendor invoices issued without tax):

    • Process through Manual Supplier Invoice / Instant Invoice instead of employee expense sheets.

    • Set up the vendor or employee as a Supplier in INVOIC.

    • Applying the calculated tax code here triggers posting controls IP9 and IP10, properly populating the Tax Transactions table for official EU VAT reporting.

    2. Manual Tax Transaction / Journal Voucher Adjustment

    If expenses must remain on employee expense sheets:

    • Register the expense line using a 0% Tax Code or non-calculated tax code so the employee reimbursement amount (TX3) is accurate.

    • Periodically (e.g., monthly during VAT closing), create a Manual Voucher (using a Voucher Type enabled for Tax Accounting) or a Manual Tax Ledger Entry to record the reverse charge VAT:

      • Debit: Tax Disbursed (Input Tax)

      • Credit: Tax Received (Output Tax)

    • Include the calculated Tax Code on the manual voucher lines so that transactions register in the Tax Transactions view for VAT declaration.

    3. AP / Supplier Expense Clearing Route

    • Post employee expense claims to an AP Clearing account via TX3.

    • Settle employee reimbursement through Accounts Payable (AP) via Supplier Invoices, where calculated tax rules (IP9/IP10) can be applied during invoice entry.

    Summary

    Because TRVEXP is designed primarily for direct employee out-of-pocket expenses and recoverable input VAT (TX2), transactions requiring Reverse Charge VAT must be handled either via Supplier Invoicing or through Manual Tax Ledger Adjustments for EU VAT compliance.

     

    Thanks!  Jane

      Terms & ConditionsAccessibility statement