VAT Invoice Correction

[lisa_pallas]

Hello,

Hoping someone can advise the best way to approach this. We have a scenario where a CIS vendor invoice was posted incorrectly. The VAT calculated and deducted was £396.

A credit was then input for this invoice via MIRO to reverse it but it didn't reverse the VAT amount.

A new invoice was posted correctly, and another £396 was deducted for VAT.

Now we have 2x £396 entries on our Balance Sheet, one of which needs to be credited.

We were thinking of using the non invoice process (through FB60) to credit the Balance Sheet Code but the Accountants don't seem keen on this. Any advice would be appreciated.

Thanks

Lisa

[sanilbhandari]

Hi lisa.pallas

I understood that you have passed the below entries:

1> Invoice captured using MIRO with a VAT deduction of GBP 396

2> A manual credit note was passed using MIRO without VAT Deduction.

3> Correct Invoice was passed using MIRO with a VAT Deduction of GBP 396

If the documents have not been paid in point 1 & 2, you can just reverse them using t code MR8M. This would pass the opposite entries and so you will than only have the invoice on point 3, which is correct as per your query.

If you are an end user, may be you should create a ticket with your IT Support team to help on the same.

Thanks & Regards

Sanil Bhandari

[sanilbhandari]

Hi lisa.pallas

I would suggest to first reverse the credit note as mentioned in point 2 above than.

Now to your original question, why was credit note posted without tax. Did you use the correct tax code in the credit note (ideally the same as the original invoice). My guess is that even if you try using Fb65 or F-02 with the same tax code and there is some problem with the tax code set up itself, Eg:

1) Tax rate is not valid anymore

2) GL Assignment is missing in OB40

3) The tax condition is set up as invalid

The above are just one of the few reasons, why tax would not be calculated, than FB65 or F-02 would also not work. You have to analyze why tax is not being calculated, before deciding which transaction to use. I would still recommend MIRO to keep the PO history in synch.

Thanks & Regards

Sanil Bhandari

PS - If you are providing an update to an answer with further information, it would be great if you provide the same as a comment and not as answer, so that it would be helpful for others in the community.

[lisa_pallas]

Hello Sanil,

No I am part of the SAP team, the question has came from the end user as to which process is correct to use. In the past we have used the Form 1 (supplier invoice) process to post a VAT only invoice but for some reason Accountancy don't want this. Unfortunately both invoices have been paid to the supplier. Basically the adjustment is required to put right the VAT account, could F-02 be an option?

Thanks

Lisa