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Former Member
Apr 25, 2014 at 02:13 PM

Tax calculation on discounted amount

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Dear Experts

Following is an query raised by client which i am unable to sort need guidance

We are working in Australian / NewZealand localization

following scenario needs to be catered in sap B1 AR invoice

item cost = 58,809

quantity = 1

discount amount = 6,469 cash discount that needs to be incorporated on invoice

discounted price = ( 58,809 - 6,469 )= 52,340

sales tax = 52,340 * 0.19 = 9,944

Following entry should pass in sap b1

ABC client 62,285

discount 6,469

cos could be any amount

revenue account 58,809

tax account 9,944

inventory could be any amount

Issue is that tax should be calculated on discounted amount instead of gross amount.

and cash discount should be entered at invoice level instead of at the time of payment received as it is Legal requirement.