A/P Down payment Request TAX Problem

[MukeshSingh]

Hello,

I have face one problem in SAP B1 9.0 in A/P Down Payment Request entry is as below,

In A/P Down Payment Request, when we are making entry for an Item of lets 1 qty of Rs:100 and a select a Tax Code of 16%(Some time supplier want tax amount in advance payment) then the document total is coming to Rs:116.00.

From Outgoing payment when we making the payment against that A/P Down Payment Request, it's make a payment of Rs:116.00.

In Journal entry it's post a entry in VAT Control A/C for Rs:16.00.

Since we are posting A/P Down Payment Request then in Journal Entry Tax amount should not come because it's a payment request.

Journal Should be like below as per account principle

Supplier A/C ------ Dr 116

To Bank A/C                  -------- Cr 116

Can any body help me how to solve this problem in SAP B1 9.0 PL4.

Thanks &Regards,

Rahul Kumar Singh

[KennedyT21 · Accepted solution]

Hi Rahul Kumar Singh....

Create an A/R or A/P down payment request for the relevant business partner. If you do this by drawing a base document, verify that you have defined the required down payment percentage. For more information, see A/R Down Payment Documents: General Area or A/P Down Payment Document: General Area.

No posting is made at this stage.

1. Create an A/R or A/P down payment invoice for a relevant business partner. If you create the down payment invoice by drawing a base document, ensure that you have defined the required down payment percentage. For more information, see A/R Down Payment Documents: General Area or A/P Down Payment Documents: General Area. The down payment invoice:
   • Creates an accounting posting
   • Does not affect inventory values or perpetual inventory
   • Does not change the status of the base document that was drawn into it
2. Once the actual payment for the down payment invoice is made, create the proper payment document, based on the down payment invoice. A down payment invoice can be paid partially. After you create the payment document, a journal entry is recorded in the corresponding control account.

   If you cancel the payment created for the down payment by choosing Data Cancel from within the incoming/outgoing payment, the paid down payment is reopened and cannot be drawn when you create an invoice.

   However, if, for example, the down payment was paid by check and you cancelled the check from within the check register, then the down payment remains closed and can be drawn when you create an invoice.

   If you copy a down payment invoice to a credit memo, the Items per Unit and Unit of Measure fields cannot be edited.

3. Create a regular invoice. Before you add it, click (Browse) to open the Down Payments to Draw window. Draw the required down payments from this window and specify the net or gross amount to be copied into the regular invoice. The total amount of the drawn down payments is taken from the Total Down Payment field in the invoice. This amount is deducted from the original total amount of the invoice.

You can pay the down payment invoices and the regular invoices in the same payment document. The down payment documents are labeled as document type DT in the payment document.

Result

• The invoice total is updated by subtracting the down payment total from the original invoice total.
• A down payment invoice that is drawn to an invoice is closed and cannot be drawn again to another invoice.

Example

The following example illustrates the down payment invoice process in the sales area.

Down Payment Invoice Creation by a Sales Person (United States)

Bass Clef Ltd. uses the non-perpetual inventory method of inventory valuation. Tom, the sales employee, creates Sales Order 875 for Horn & Brass for the following items:

1 Music Score Trumpet Solo	$60
1 Music Score Guitar Solo	$40
1 Music Score Flute Duet	$100
Total	$200
Sales Tax (5%)	$10
Total including Tax	$210

Horn & Brass has decided to pay currently only a deposit of $80. Tom, as a sales employee, does not have authorization to create a down payment invoice, but in SAP Business One Tom can create a deposit (incoming payment) directly from the sales order, so that Down Payment Invoice 431 is created automatically once the payment has been received. At this point, no sales tax is charged.

The journal entry created by the deposit document is:

	Debit	Credit
Cash	80
Account Receivables		80

Another journal entry created automatically by Down Payment Invoice 431 is:

	Debit	Credit
Account Receivables	80
Payment Advances		80

Tom creates Delivery 589 and the order is shipped. He issues the final invoice for the total sales order. The amount due is only the open amount (the remaining amount to be paid). The revenue reflects the full amount, which creates the following journal entries:

	Debit	Credit
Accounts Receivable	130
Payment Advances	80
Sales Tax		10
Revenue		200

Down Payment Invoice Creation by a Sales Person (United States)

Books & Poems Inc. uses the non-perpetual inventory method of inventory valuation. Anne, the manager, creates Sales Order 361 for the Bloor Street Book Club for the following items:

1 British Novel	$30
1 American Novel	$45
1 Canadian Novel	$25
Total	$100
Sales Tax (5%)	$5
Total including Tax	$105

After two weeks, Anne has not received payment. She creates Down Payment Invoice 232, for which the following journal entry is created:

	Debit	Credit
Accounts Receivables	40
Payment Advances		40

The Bloor Street Book Club pays the deposit once they have received the down payment invoice. At this point, no sales tax is charged.

The journal entry created is:

	Debit	Credit
Cash	40
Accounts Receivables		40

Anne creates Delivery 870 and the order is shipped. She issues the final invoice, which creates the following journal entries:

	Debit	Credit
Accounts Receivables	65
Payment Advances	45
Sales Tax		5
Revenue		100

Hope Helpful

Regards

Kennedy

[Former Member]

Dear,

      can we create A/P down payment invoice in a situation where we paid cash before we have decided the exact product or service or where the information for product & service is not available?

[kothandaraman_nagarajan]

Hi Mukesh Singh,

Your subject and problem is not related to AP down payment request. A/P down payment request will not create any accounting and inventory posting.

How did you get those figures in JE?

Thanks & Regards,

Nagarajan