on 10-03-2013 1:48 PM
Hello,
For SEZ customer there is not tax applicable but the company need to give tax to the govt. ,whenever the company bills the customer this tax need not be printed, but at the time of consolidated these customer the Finance team should know about the invoices made to these customer. How can we acheive this? Need your inputs.
Thanks
Sukant Chakraborthy
A similar sort of requirement is discussed in following thread.
- Billing document for SEZ customers w/o TAX
I hope that might be helpful to you.
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
Thanks JP,
Is sort of, but my requirement is the condition type which is defined for the pricing procedure should not be in the invoice but the invoices should hit the GLs. While making payments the finance team should the amount to be paid to the govt.How to achieve this can you elaborate with an example, your inputs please.
Thanks
Sukant
Hi Sukant,
You can define a customized condition for calculating Tax which you can exclude from printing in the invoice. By using a ABAP code in Invoice Layout program to add this value to total but not print separately. The amount of this condition can be accrued to a G/L account (Balance sheet account) with a sold-to party. When Finance makes a payment to government, they can knock-off the amount accrued in this G/L Account.
As the amount is available in G/L account with a sold-to party, any time you can see the tax collected from each customer.
I hope this helps.
Regards,
Amit
Hi Sukant,
Please follow given steps:
You define a normal condition type which may be a copy of any surcharge discount type. Assign a desired access sequence to the condition type so that you can maintain the value of % for tax calculation based on your requirement.
Now, if the tax is to be calculated on gross value, in pricing procedure insert this new condition at appropriate step. This condition type will be a normal condition in pricing procedure with an Accounting key. In transaction VKOA, you can link this account key to a required G/L account. The condition type will be a normal condition in pricing procedure and let it calculate the value of tax depending on condition record defined.
When you create the Sales order, system will calculate this condition in sales order and copy the same when you do invoicing for this sales order.
You can make a copy of standard layout RD00 of Invoice. In this copied version, you do not map the new condition for printing and by small code add the value of that condition to a net total with proper caption like "Total inclusive of Tax".
Since the condition is mapped to a G/L account in VKOA, when the billing document is saved it will post this value to respective G/L account.
Later finance can know-off this G/L account balance when the payment is made to government.
I hope this will help.
Regards,
Amit
Hi Sukant,
If your tax is to be calculated on item you can copy standard condition K032 or K007 condition if it is for customer. Please note that these standard conditions are discounts so after copying change the field Plus/Minus to Positive so that the charges are added to the total. Whichever condition type you use, please check the access sequence and maintain the condition records for your condition type so that the value is determined in Sales order.
You can use standard pricing procedure RVAA01. You can insert your condition before step 800. Keep the requirement for this condition type as 2 and assign an Accounting Key.
Once this pricing procedure is updated with your condition type, make sure you map the accounting key to a required G/L account using VKOA transaction.
After these settings, the pricing is set in the system. Next step is to sit with your ABAPer and tell him to change the layout as mentioned in earlier replies.
I hope this will help.
Regards,
Amit
Thanks Amit.
This is what the PP what is being configured. your inputs and suggestion please. How will the Condition type ISEZ perform while invoicing. since there are 3 types of Account groups1. Domestic 2. Deemed Export & 3. SEZ Customers. Is this PP will perform all the function or i need to have different procedure or the only change i need to do is change the customer pricing procedure depending on the account group & have one procedure. Thanks for replying.
Hi Sukant,
If all the types of customer will have the tax amount credited in same G/L account, then using same pricing procedure you can server the purpose. To have these 3 kind of taxes, you can use one of the customer attribute like Pricing group where you can maintain these 3 values and maintain K030 condition on pricing group.
If G/L accounts are also different, then you can create 3 pricing procedure for these groups.
Let me know if you need any further info.
Regards,
Amit
Hi Sukant,
With reference to above given pricing procedure, I would suggest that if the G/L account is same for all 3 kind of customers, then you can keep the same pricing procedure and maintain your condition ISEZ on Customer pricing group and article basis. Depending on the type of customer system will determine the tax rate and post it to given G/L account.
If the G/L accounts are separate, I would suggest to create 3 copies of the above pricing procedure. In Pricing procedure determination, based on this customer group you determine the respective pricing procedure and based on accounting key it will post the amount to G/L account.
Regards,
Amit
Amit,
I party agree with your suggestion, where you mentioned that Tax amount can be excluded from Invoice printout and still be calculated on SAP Billing doc.
How will G/L account entries will look like?
Can you check & confirm, which is the desired accounting entry for your business scenario?
As per my understanding, they are not suppose to collect tax from customer. But, still they have to pay the tax to Govt. In Normal sales, where tax are collected from customer & price is inclusive of tax, G/L entries will be.
Particular | DR | CR |
Customer A/c | 1122.40 | |
Revenue A/c | 1000.00 | |
Service Tax Payable A/c | 120.00 | |
CESS A/c | 2.40 | |
S. CESS A/c | 1.20 |
So, as per my suggestion in Billing document for SEZ customers w/o TAX They have make necessary amendments in there pricing. Price is exclude tax & tax is not to be charged to the customer. And still you need to pay it to the Govt. Then G/L entries will be.
Particular | DR | CR |
Customer A/c | 1000.00 | |
Tax Adjustment A/c | 123.60 | |
Revenue A/c | 1000.00 | |
Service Tax Payable A/c | 120.00 | |
CESS A/c | 2.40 | |
S. CESS A/c | 1.20 |
To achieve this pricing, the pricing procedure can be:
Step | C Type | Ctype Desc | From | To | Condition Record | Condition Value on Sales Doc | Acc Key |
---|---|---|---|---|---|---|---|
10 | PR00 | Price | 100 | 1000 | ERL | ||
20 | Gross Price | 10 | 1000 | ||||
30 | ITST | ITCH Serviec Tax 12% | 20 | 12% | 120 | MWS | |
40 | ITPC | ITCH Primary CESS 2% | 30 | 2% | 2.4 | MWS | |
50 | ITSH | ITCH Sec Edu CESS 1% | 30 | 1% | 1.2 | MWS | |
70 | Total Tax to Collect | 30 | 50 | 123.6 | |||
80 | Total Including Taxes | 20 | 50 | 1123.6 | |||
90 | ZADJ | Tax Adjustment(discount Cond Type) - This can be determined based on customer or new customer group as SEZ or new tax classification for SEZ csutomer. | 70 | 100% | -123.6 | ERS | |
100 | Total Price | 80 | 90 | 1000 |
Further, TAX G/L account, talk to business side contact for addition clarity and their business process.
Thanks, JP
User | Count |
---|---|
99 | |
11 | |
10 | |
6 | |
5 | |
5 | |
4 | |
3 | |
3 | |
3 |
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.