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Prompt Payment Discount

Former Member
0 Kudos

Hello Experts,

I need your suggestion in a scenario .We are in process for fixing  cash discounting (prompt pay discounts) logic for tax codes with 100% (These are used with external tax engine): In current scnario prompt pay discounts using tax codes configured as 100% (denotes that the tax amount is being calculated by an external tax engine) are not being posted correctly during the payment process.  During the payment posting, SAP is posting half of the calculated discount to the discount account  and the other half to the VAT account.  The result of this posting is that the VAT is offset by too much. In order to fix this posting today, a back-end journal voucher needs to be manually input to offset the incorrect amount posted to the VAT account and post this amount to the discount account. 

If the journal voucher is not completed, the tax reporting will be incorrect, showing a smaller tax liability to the tax authorities than what is legally due.

This affects countries that take discounts on the gross amount of an invoice (includes tax) - as these countries are the only ones that would have VAT offset during the payment process.

Could you advise on how to handle this scenario in SAP.

Regards,

Amy

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Answers (1)

Answers (1)

former_member182098
Active Contributor
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Hi Amanda,

It may be difficult to comment upon where the exact problem lies in the configuration. However, the configuration can be changed to meet your requirement. This should facilitate to stop posting posting any future manual journals.

You may please check with the consultants to have the impact analysis of these changes and they should be able to help you.

Regards,

Ravi