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Former Member

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

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?

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  • Best Answer
    Nov 07, 2016 at 07:15 AM

    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.



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    • Former Member

      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