Dear Friends,
In my client office they procure oil require for power generation. So at the time making a p/o Vat ( value added tax) charged ( for example 4 %) is loaded on to the material. Accordingly accounting documents are created at the time of G/R u2013I/R. But since they are in power industry they get some refund in Vat ( for example 1% ) for this oil procurement.
Currently they are doing adjustment for this manually by passing JV to respective accounts but this doesnu2019t affect in reduction of that material cost.
Now as per their new requirement when the p/o is prepared in SAP to the extent VAT is to be borne by the company the same should be loaded onto the material ( in this example 3% ) & to the extent VAT is refundable ( in this example 1%) the same should results in reduction in material cost subsequently and should hit Vat recoverable account when GR is prepared. Kindly advise whether this is possible in standard SAP.
Rgds
Prashant