FOC Process with Tax Invoice

[Former Member]

Dear Experts

I would like to get some guidelines from you on the FOC process with Tax Invoice.

The requirement is - Business wants to maintain the Price and then the Tax to be calculated on the Price/Net value.  After shipment, the Invoice has to be generated to show the Tax on the FOC Invoice.

Here, the requirement is NOT to charge anything from customer.  The Tax amount should go to the Tax payable account (similar to the normal sales process), but, the revenue should not go to revenue and customer should not be debited.

I tried making the Price as statistics and while generating Invoice, its throw an error that the No Taxable item found in the Invoice.  Without generating Invoice, the tax can't be posted to GL.

So, how to handle this scenario in SAP SD side and Finance side.

I have gone thru some of the discussions, but, I don't find clear details to handle this requirement.

Regards,

Mani

[Former Member · Accepted solution]

Thank you Mr. SR Kumar & Joan Mas.    Let me try this and get back, if any issue.

Regards,

Mani

[Former Member · Accepted solution]

Dear Mr Kumar,

As per your suggestion, created the pricing procedure and Cash account determination procedure.  But, when I release to accounting getting error message as "Assign condition type Z001 in CO-PA".  So, when I make the setting in KE4I, not sure which Val.Field to be assigned for condition type Z001.  Can you please provide some more details.

Thank you

Regards

Mani

[Former Member · Accepted solution]

Dear Mr Kumar,

Can you please also share the pricing procedure setup and GL account setting.  I have setup and checked the accounting entries. But, it seems its debiting to customer account.  Pl refer the attachment

Regards,

Mani

[ravi_kumar100 · Accepted solution]

Hi,

Please find details for FOC.

Pricing Procedure:

Billing Document type :VOFA:

New Cancellation Document as S4 created by copying the S1 Document type and assigned the document type as S4 with the document type as "ZV" to have different Accounting document number during cancellation.

Account Key assigned for Cash Allocation as below:

The required Cash Key with G/L account maintained in VKOA as below:

Financial Accounting Document Setting in OBA7 :

In Invoice the Pricing is as below:

Accounting entries are as below:

Revert for any clarification.

Regards,

SRK

[Former Member · Accepted solution]

Thank you so much Mr. SR Kumar,

Sure. I will get back in case of any further clarification.

Regards,

Mani

[ravi_kumar100]

Hi,

We had the same requirement that the Tax amount should be credited to the Tax G/L accounts and the customer account should not be impacted ,an alternate Sample Sales account should be hit during Invoice posting and in cancellation also. We referred Note :34526 - Delivery free of charge and value-added tax

For the above requirement we used the Cash Sales Account Determination of SAP where the determination will be assigned to the billing document type and necessary G/L maintained in

We encountered a challenge for the RV document type of accounting document as it would support Customer G/L Account posting only. But our FI consultant was able to manage it by copying it to ZV and posting for G/L account.

If this is your requirement ?

Regards,

SRK

Message was edited by: SR Kumar

[Former Member]

Hi,

check OSS notes 34526, 1233225 and 102852

Regards,

JM