Invoices created with a wrong TAX classification for MWST

[former_member724401]

Dear experts,

A material was created with the wrong MWST tax classification(5,5% rather 20%), and we didn't discover that until the reception of invoices bu the costumer.

We have now 60 invoices created with the wrong MWST TVA amoount. is there any way to correct that without having to cancel and recreate all inoivces ?

Thank you for your help.

Best regards.

[sanilbhandari · Accepted solution]

Hi miz

If you can cancel the invoice, it is best to cancel them and do invoicing again. If you cannot cancel invoice, than you need to take the credit note and debit note, where you issue a credit note for the wrong invoice. Than you issue a debit note, once the material is updated correctly or you update the debit memo request manually before invoicing. I do not see any other way.

Thanks & Regards

Sanil Bhandari

[jpfriends079 · Accepted solution]

If a Debit memo request way is taken for this, how the collected amount will be transferred to Tax Accounts?

Thanks,
JP

[sanilbhandari · Accepted solution]

Hi 1005bf8318434f49964a5737c29bb265

I am not sure, if I get your concern on tax accounts. Assume that the material tax classification was wrongly updated as 1, due to which tax code A5 for 5.5% was determined. If the invoice cannot be cancelled using VF11, than a credit memo request should be created followed by a billing. This should create the below accounting entries:

Invoice

Customer A/c Dr $1055

Revenue A/c Cr $ 1000

Tax Payable Cr $ 55

Credit Memo

Customer A/c Cr $1055

Revenue A/c Dr $ 1000

Tax Payable Dr $ 55

Now a debit memo request would be created. If the material tax classification is still 1, than this can be manually changed to correct one in the debit memo request to, say 5. This would enable the right tax code to be determined in the debit memo request. Now when the billing for the debit memo request is done, it should update correctly the tax code with accounting entries as below:

Customer A/c Dr $1100.5

Revenue A/c Cr $ 1000

Tax Payable Cr $ 100.5

Thanks & Regards

Sanil Bhandari

[rob_ariaans]

Seeing that your customer already has received the incorrect invoice, the correct way is to create credit notes and issue new invoices - check with your tax department on your countries specific legislation.