Credit Note with last years tax rate

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sapppro
Posts: 184
Joined: Fri Oct 25, 2002 11:26 am
Location: Arizona

Credit Note with last years tax rate

Post by sapppro » Thu Mar 04, 2010 3:25 pm

I'm some others are running into a similar problem with many tax rates changing due to economic conditions.

In some cases, we need to issue a Credit for an invoice that was processed last year. In some cases, we do not reference the old invoice because it has already been archived (not sure if this makes a difference). The customer may have had a 5% tax rate last year, but now the tax rate is 10% for example. If we create a credit note today, it references the current tax rate.

Ok - I understand why this occurs, but is there a workaround for this scenario? Is there a way to manually adjust the tax rate? I know I can manually change the tax rate in FTXP and then create the credit note - but that has risks that I would like to avoid.

Is there an easy to get around this?

Regards,
Mark

YWONS
Posts: 50
Joined: Thu Nov 12, 2009 6:35 pm
Location: Georgia

Re: Credit Note with last years tax rate

Post by YWONS » Fri Mar 05, 2010 9:24 am

Not sure what you use for 'pricing date' ....but can you try manually changing the date to be last year so as to get the rate that was valid at that time ?

sapppro
Posts: 184
Joined: Fri Oct 25, 2002 11:26 am
Location: Arizona

Re: Credit Note with last years tax rate

Post by sapppro » Fri Mar 05, 2010 9:43 am

Thanks YWONS - I tried that but it did not make a difference. I went back and double checked with accounting to see if we should be using the new rate anyway, since they are trying to create credits against invoices that occurred in 2009.
I appreciate the feedback!

Frank Lai
Posts: 1720
Joined: Mon Oct 21, 2002 8:03 am
Location: Canada

Re: Credit Note with last years tax rate

Post by Frank Lai » Fri Mar 05, 2010 7:43 pm

Hi

Changing the pricing date only works for countries that uses tax jurisdiction code ( ie US, India etc). Reason being the tax rate set in FI per tax code for non jurisdiction code countries is not date aware. So, even if you change the pricing date, FI will return the current tax rate.

SAP's recommended solution is to create a new tax code in FI every time the tax rate changes. Not a great solution but there it is.


Frank

AndyW
Posts: 70
Joined: Wed Jan 02, 2008 10:27 am
Location: North Norfolk, UK

Re: Credit Note with last years tax rate

Post by AndyW » Tue Mar 09, 2010 4:19 am

I think the Services Rendered date will do what you want rather than the pricing date. We had a similar situation i.e. raising credit notes for invoices from the previous year following the UK VAT rate change. I can't check right now but I believe we put the original invoice date in the Services Rendered field and that then used the correct tax rate.

In our scenario the VAT rate changed from 17.5% to 15% for 2009 and then changed back to 17.5% wef 01.01.2010. We were advised that a new Tax Code would not be needed as we already had one for the correct rate.

Hope that helps.

Andy

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