Invoice for a milestone must not have VAT and service tax

[Former Member]

Hi experts,

In our company we have two types of price components

• Price for imported equipment and
• Price for local equipment(Installationmaterial, Labour).

1. Based on the price of local equipment VAT and service tax are calculated in sales pricing.
2. We have mile stone billing where customer will be billed at various milestones of the project.
3. One of the milestone is procurement of the imported equipment where customer has to billed only for the imported equipment where VAT and Service tax must not be considered for the milestone.
4. As per standard SAPsystem is considering proportinate amounts of the imported equipment price and local portion and is evaluating VAT and ST
5. based on the local portion what it has considered.

I tried creating a seperate pricing procedure for billing withought VAT ST and local portion pricing conditions but system is deducting local portion amount and VAT and is showing a decreased amount (For example if I have RS 100 for a milestone, system is showing 95 rupees in the invoice with the new pricing). Can we have invoice generated without VAT and ST for the actual amount of milestone? If yes, please suggest how to achieve that.

Regards,

Tilak Mokirala

[Lakshmipathi]

I am sure, material code for both would be different and in which case, you can very well differentiate the tax classification in material master.  By doing so, for imported material, tax will not be fetched into your sale order / billing.

G. Lakshmipathi