Skip to Content
0

Changing the date ByD is using to calculate Sales & Use Tax

Nov 04, 2016 at 09:06 PM

84

avatar image

ByD is using the posting date of the supplier invoice to calculate sales and use tax. I know at one time ByD calculated the sales tax based on the supplier invoice document date, which is how it needs to be for audit purposes. Now we had a rate increase effective 10/01/16 but I have about $500,000.00 of payables to enter dated before October when sales tax was lower. I don't have time to go line item by line item to adjust the tax date. Two part question why can't ByD get it right and any suggestions to have sales tax calculated based on the document date not the posting date?

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

1 Answer

Best Answer
Harshal Vakil
Nov 07, 2016 at 07:15 AM
0

Hello Connie,

For the supplier invoice, Tax date is determined from the Invoice date, if posting date is not maintained in the invoice.

Same invoice date will also be used to determine posting date. Hence Ideally all three date, Invoice date, posting date and tax date will be same.

However, If you change the posting date manually, Tax date is determined from the posting date. In this case, Invoice date will differe from tax date and posting date.

I understand that there was a change in the tax rate. So you would like to post the invoice with the old rate in the current period/date.

As you mentioned, one option is to change the tax date manually for each line in the invoice.

Other Option is as follow.

1) Create the invoice with invoice date in Oct (When tax rate was lower), without entering the posting date.

So system will take the posting date and tax date same as invoice date. (eventually tax will be calculated on the invoice date).

2) Keep period closed (Blocked or First allowed step for October higher then 010, Preferably 020)

3) Maintain valid process control for Oct.

4) Release the invoice.

Here system will raise warning message that period closed but it will allow you to release the invoice.

5) In general ledger -> Source document view, Invoice will be listed under unposted documents with the error period closed.

6) Click on action and select post to another period and enter a new posting date in Nov..

Here system will post the document with the Old tax rate in the Nov period (JE will be created for Nov)

This way, you will not have to change the tax date in the invoice line and postings will be in Nov as desired.

I hope this helps. If it does, Please accept this as answered. Let me know in case of further questions/clarifications.


Regards,

Harshal

Show 3 Share
10 |10000 characters needed characters left characters exceeded

Thank you Harshal! Do you know off hand, if there is a way to, at the invoice level, select all line items and change sales tax code; so that the change is applied to all line items instead of having to go line item by line item.

Am I allowed to ask additional related questions on one thread or is it preferred to start a whole new thread?

0

Thanks for the feedback.

As per the rules of engagement for the community, you should be raising a new question. (If its relevant may be referring to original thread.)

Since you asked :) , It is not possible to change the tax code for all line items. you will have to change the tax code for each item manually.

There was an similar question asked recently : https://answers.sap.com/questions/37470/index.html

Basically, Tax code is determined by system automatically using multiple parameters. (See diagram below as an example)

ideally, you need not to change the tax code. But yes, there could be situation where you may need to change the tax code and this would be for small number of lines (I am assuming that not every invoice needs a tax code change.)

Along with this, with mass update of tax code, system will have to recalculate the tax, totals for all the items and in case of invoice where line items are in hundreds this wold also impact performance of the system.

I hope I was able to answer your concerns.

Regards,

Harshal

tax-event.jpg (41.0 kB)
1

I know I am late in replying, I am not accustomed to having anybody actually reply. We had our ByD customized to default to the tax code used my the majority of the buyers. The majority of the buyers however do not have multiple line item invoices which was a good thing since the "customization only applied to the first line item. :) live and learn I always say and pray lessons learned are applied to the deployment of S4.

Thank you again for your response , Connie

0