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Former Member

Customer Should not be debited the tax amount during Invoice posting in FOC

Hi All,

I have a business process in FOC , where the tax amount which is flowing for the particular product should not have a debit entry for the customer.

The customer should not be debited.

Accounting Entry happening write now is

Customer A/c Dr- 300

Sales Revenue A/c Dr - 2000

Sales Revenue A/c Cr- 2000

IGST Payable - 300

This Debit entry which is happening for the customer of Rs.300 should not be debited to the customer in VF01 posting. instead an expense G/L has to hit with the amount of 300

What modifications has to be done for having an expense G/L in place of customer account during posting in VF 01.

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3 Answers

  • Jul 14, 2017 at 02:13 PM

    Before posting a question, please make sure you have searched all existing content -- as the answers may already be available.

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    • Former Member

      I have checked the method of clicking the accurals in the condition type , during this time I am having a debit and credit entry for the same . along with the DR and Cr for the Sales revenue GL , but with these entries I am getting the customer account debited with the tax amount also.

      My requirment is Customer account should not have the tax amount debited. In order to avoid the customer debit entry for the taxes part what has to be done.

      Please advice

  • Jul 18, 2017 at 09:10 AM

    Hope you have a different pricing procedure for FOC in which case, you need to share what steps and condition types you have and along side Account Key. You should be aware, tax postings from SD to FI will happen based on OB40 settings which your FI team would do by assigning the required G/L account to the Transaction and not sure, whether you have checked this already.

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    Former Member
    Jul 18, 2017 at 09:43 AM

    Hi Lakshmipathi,

    Thanks for your reply.

    I have created a sperate pricing procedure for FOC .

    I have created a separate condition type ZGST to caputre the taxes part.

    My Condition Tab during billing is

    My accountry is like below

    Client requirement is they should not have the Debit entry of 540$ to the customer account "200244" and the G/L account - 50340097 should have the debit entry for the same 540$.

    In short the accounting entry the client requires is as below

    GST Expenses Dr A/C - 270

    IGST Payable entry Cr A/C- 270

    FOC Sample sales expense 1500 A/C DR ( This is fine as per client)

    FOC sample sales expense 1500 A/C CR (This is fine as per client)



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