Skip to Content
0

Rebate Credit note with reference to individual tax invoice

Feb 15 at 12:25 PM

93

avatar image

Dear Experts,

In UAE and KSA , VAT has been recently implemented and as per the guidelines we are supposed to tie back each credit note to specific tax invoice. We are using Rebate agreements and till last year we were issuing monthly settlement to customer by way of partial settlement requests for each rebate agreement which took entire sales volume and passed one credit note. The sales volume would comprise of multiple individual invoices relevant for rebates.

As per the new VAT law we are required to issue a credit ( or Debit ) note to customer for such rebate agreements for each tax invoice against which the sales was made in previous period.

I was checking various options

1) Create a credit note request with reference to an earlier invoice by copying the same pricing conditions including the rebate amount. However this results in credit note for the entire invoice amount and not only to the tune of rebate payment - which would typically be in range of 3-5 % of the sales value.

2) Review the list of invoices in the drilldown of rebate agreement and then create multiple partial settlement requests for each invoice for which the amount has been accrued. This process would be time consuming and prone to errors but does not require any new configuration or change in the process. Instead of generating one settlement request per month we may now have multiple settlement request for customer per individual invoice.

Does any one have an idea on how to optimize this? Both the above options do not give me the desired outcome of - ease of operation and passing correct rebate credit note while also complying to law of land.

Any help is greatly appreciated.

10 |10000 characters needed characters left characters exceeded
* Please Login or Register to Answer, Follow or Comment.

1 Answer

Best Answer
G Lakshmipathi
Feb 15 at 02:08 PM
0

Did you check with SAP before posting here? Since this is a legal requirement and in fact, SAP have also released some pilot notes related to KSA VAT, I am sure, there should be some standard provision available in SAP, to cater this requirement also.

Show 4 Share
10 |10000 characters needed characters left characters exceeded

Hi Lakshmipati,

In fact I had not posted an OSS message yet. Thanks for the suggestion. I have done that now and will wait for SAP to come back with their answer.

Thanks,

Kartik

0

Whenever you add any post, please do so under Comment and not under Answer, as you were not answering but only providing additional informations as required by the member. Meanwhile, I have converted your above post from Answer to Comment

Also don't forget to update here once you got response from SAP

0

SAP does not have a standard solution within the application. They have come up with the reporting tool for VAT compliance and such credit notes are supposed to be reported under adjustments. Since there are minor variations in the way this needs to be reported under KSA and UAE related VAT laws the additional reporting tool ( paid product) takes care of this.

This tool is called Advanced Compliance reporting for MENA VAT.

1

Thanks for an update If your question has been answered then kindly consider closing it (see this blog).

0