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How to configure Different tax amount calculation for different milestones

Mar 01 at 05:08 AM


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Dear Team,

Please help me with this requirement. We have a client who is using Milestone billing plan. They have 3 main milestones namely advance, progress and retention. Currently when each of these milestone is billed, 5% tax is calculated. The client's requirement is to collect tax of retention milestone in Progress milestone itself. When Retention milestone is billed, only the gross amount is billed without taxes. How can we achieve this?

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Leave alone in SAP how are we going to achieve this. Is it not illegal that the client levy more tax than what it should have been ? Tax can be levied for what you billed.


Dear Lakshmipathi,

The retention amount is just a milestone which is like a warranty. The project is already delivered before the retention amount is billed. Hence, it is absolutely legal to collect the tax amount on the total amount including retention milestone. And, this I believe is the rule in that country, in such scenarios.

Is there any way we can achieve this?

Warm regards,


Sheema Seetharam Keeryott

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

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