How to assign input tax for non taxable asset acquisition

Sap has default input tax indicator V0 (input tax 0%) and A0 (output tax 0%) created in sap. Anything that required 0 input tax can be assigned to these indicators.

If you want this indicator to work for your asset acquisition then you need to assign it to your company code.

To get it assigned you use transaction code OBCL or path;

SPRO > Financial Accounting > Asset Accounting > Integration with general ledger > Assign input tax indicator for non-taxable acquisitions 

Enter V0 in place of input tax indicator and A0 in place of output tax indicator against your company code.

SAP uses these indicators when you post an asset acquisition that are not subjected to tax but are required to be posted to accounts that are tax relevant.

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