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Tax-free freight in US

Hi everyone,

we are looking for a solution to cover tax-free freights in the US.

Currently we use the price component "Freight" to cover the freight price within a sales order.

However in Vertex-integration this freight gets taxed along with the sold product.

Is there any way to setup this price component "Freight" in US as tax-free?

Thanks,

Thomas

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2 Answers

  • Oct 28, 2015 at 12:23 PM

    Hi Thomas,

    we solved it in the following way:

    1. We created a service for the feight

    2. Within the service we maintained the states where freight is non-taxable as tax exempt

    So, for all these state the system will not calculate tax and for all states there will be tax.

    Best regards,

    Wolfgang

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    • Hi Wolfgang,

      thanks for your quick response.

      We also thought about this one. However with large volumes of transactions, we see the following problem:

      - If we have materials maintained and services as well in one order, we have the problem, that we need to "confirm" the service manually for each order. In case of large volumes this will be much effort.

      - In addition we have the problem, that in tight schedule of customer invoicing run, the system might issue two invoices (one with outbound delivery, one with freight).

      Or is there any point I miss?

      Thanks a lot,

      Thomas

  • avatar image
    Former Member
    Oct 29, 2015 at 06:23 AM

    HI Thomas,

    • Just create a service for freight and use it as another line item other than product.

    • And as per your concern about invoice, you have to select both invoice requests and just click on new Invoice then you will get a single invoice for both the requests.

    Thanks & Regards,

    Anant Patel

    SAP BYD FUNCTIONAL CONSULTANT

    Phone: +91-9716100326

    Email: anant3113@gmail.com

    Skype: anant.3105

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