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Former Member

Tax Rate Determination in Credit Memos With Ref to Invoices

The requirement in US is that when the customer has changed his address to a different region, from that where the services was supplied (The region in which the customer (ship-to party) was residing when the invoice was raised) and if a credit memo is raised with reference to this invoice, then the taxes applicable on the credit memo for this customer should be the rates applicable for the state where the original invoice was raised. However currently in SAP the new customer address is updated in the billing document (invoice that was raised for the region where the customer had his place of business previously) and hence the original region code in the invoice will not be available and will be overridden with new region code.

Consider the following example:

1 - Invoice raised on 01-Jan-2010 to a customer whose region is Florida and tax rate is "X %"

2 - On 01-Feb-2010 the customer in Florida changes his place of business to Texas region.

3 - On 01-March-2010 a credit memo is raised with reference to the invoice dated 01-Jan-2010 u2013 On this credit memo the tax rate applicable will be of the region of Texas u2013 Example u201CY%u201D

The requirement is that in the credit memo the system should capture the original region code or there should be a provision to change the region code of the customer (ship-to party) at line item level u2013 so that the tax determined is applicable to the region where the customeru2019s place of business originally existed.

From our side we did check the SAP screen for Creation of contract/Order (VA41/VA01) u2013 However we were unable to find the customer region field in these screens at line item level.

We request you to please look into this at the earliest and let us know what the options that exist for this are.

Please also let us know should you require any clarifications with reference to the above requirement.

Regards

Siddharth Sridhar

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3 Answers

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    Former Member
    Sep 21, 2010 at 04:45 AM

    Hi,

    Since you want the original tax rate to be picked up, might as well create the credit memo before changing the region in customer master.

    Other option is make settings in copy control from F2 to G2 that pricing data is not redetermined in Pricing type.

    In case you change the master data and then create credit memo system will pick up tax rate by the new region code.

    Also, changing region at item level after SO, Delivery and Billing has been done is something that std SAP would not support/recommend.

    Regards,

    Amit

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    Former Member
    Sep 21, 2010 at 04:49 AM

    Hi Siddharth,

    As for the region code that you mentioned, in fact yes, you can change during transaction creation, and Region is coming from the customer master record that you maintained.

    You can find it at the Item level --> Partners, but you will not be able to change the Region there.

    To change it, double click on the Sold-to Party at Header level, then select Sold-to Party --> Details.. Here you can change the Region accordingly. It will reflect accordingly at the Item level --> Partners.

    Note: This change will not change the central master data maintained for this customer. It will only affect this document.

    Hope this helps.

    Thanks.

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    Former Member
    Sep 21, 2010 at 07:31 AM

    hi,

    As earlier reply you can change the address of sold-to-part & ship to party at header level which will be for this document only & will not affect you master data.

    Also there is another way, as we have service rendered data option in shipping tab, so you can maintain taxes, prices in conditon table on particular date & apply this date from header at shipping tab. So system will calculate taxes, prices as per service rendered date.

    Hope this will help you

    Thanks

    Trupti

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