VAT Receivable in case of Returns Sales

[Former Member]

Hi SAP gurus,

If the returns is within 6 months from the date of original sales invoice date, then we can take credit of VAT. Otherwise, we cannot take credit but to show in expense account.

When taking return with original billing doc , pricing procedure will get copied. in such case VAT condition will also get copied .

so for sales Return after 6 months there shud not be VAT condition & VAT amount should get added to the pricing as we need to give customer full amount credit.

How can we take care of this situation. is there any simple way to do this ?? or we need to delete the VAT condition & then add same amt in the base price manually

Thanks

Vishal

[Former Member · Accepted solution]

Hi Vishal,

The simple way would be that u have to delete vat condition type from the document and add the amount manually to the base price.

Go to V/06 and select the vat condition type.

In the block : Changes which can be made :>> click on delete.

After making this setting only u wud b able to delete the condition type from the the sales document.

Hope it helps.

Dushyant

[Lakshmipathi]

Though couple of suggestions are there to delete manually, for me, it is not adviceable. This is due to the fact that when the original billing was generated, the corresponding VAT would have been debited to customer account.

Now when the return order is created and let us assume you delete manually those VAT condition types and subsequently generate a credit note on customer.

In this circumstances, from FI point of view, this is wrong because, for the debit entry, you have to pass a credit entry also; only then the loop will close. When original billing was generated, the corresponding tax value would have been debited to customer account and if you do not adjust this entry, then this amount will show as a debit entry in customer account.

So from FI side, suitable exit should be applied in such a way not to take credit of such returns.

thanks

G. Lakshmipathi

[Former Member]

I think the better way is to do this Process Manually & activate the Manual Entries as C (Manual entry has priority) & Delete Check box in Condition Type Customizing.

Else you need to take a help of ABAPer to maintain some logic in the Routine.

Best Regards,

Ankur

[Former Member]

hello vishal,

i have also come across this issue

if sales Return after 6 months there shud not be VAT condition & VAT amount should get added to the pricing as we need to give customer full amount credit.

manually delete the vat condition and manuallly add up the value to pricing condition.

while the returns happen the user will be known the 6 month completed or not . if completed then user will follow maually deletation