Tax amount in Rebate Accrual

[former_member1091983]

Dear Gurus,

When i create the partial or final settelement credit memo request/credit memo for a Rebate agreement, tax amount VAT is also being calculated for that accrued amount. I have VAT condition type in my prcing procedure.

My question is that ' Will vat be applicable for this accrued amount also?' when we make settlements.

Looking for ur valuable answers..

Thanks&regards

JJ

[former_member1091983]

closed

[Former Member]

Hi JJ,

Usually rebate base is accumulated before VAT.

That is: Rebate base = VBRP-NETWR.

Then rebate invoice is generated depending on this base value and then the VAT is added to the rebate invoice net value.

When you use standard rebates, the VAT for the rebate credit memo is calculated depending on the settlement material.

When you use extended rebates, the VAT for the rebate credit memo is calculated depending on the settlement material, which is usually the real product, responsible for the rebate.

In this last case, in the rebate credit memo, each item might have a diferent VAT %.

IMHO this last solution is more correct from a business point of view.