Incoterms in purchase order should appear only in header.

Question

Hi All,
When the inter company purchase order is created with reference to purchase requistion, in some scenarios the header and item level incoterms are copied in the purchase order.
1. Incoterms in the header level of purchase order are copied from vendor master.
2. Incoterms in the item level of purchase order are copied from customer master.
One of the observation made my by me is that -  when we create a purchase order with reference to purchase requisition and prior to copying and adopting the purchase requisition if we leave the purchase organization field blank then system will copy the incoterm at the item level of purchase order.
Our requirment is 1.how we can avoid copying the icoterms at the item level of purchase order 2. In what situations the incoterms are copied in the item level of purchase order.
Thanks and Regards,
Shrikant

Answer 1

Hi,
To have VAT to appear in the PO print clearly ,1st heck FORM or PDF/SmartForm Form used for your PO out put type for application EF in NACE t.code. Check SmartForm in t.code: SMARTFORMS and see condition types VAT is there or not. Just check with ABAPer about condition type of VAT inclusion in SmartForm.
VAT can be inventoried or can be used for Set-Off (you can say as non-deductable or
Deductable) based on business process requirement or material behaves to purchasing document. For VAT can be inventoried , you should have a condition type with assigning of NVV key and For Set-Off VAT , you should have another condition type and assigning to an accounting key { For example: ZAV ( new one)not NVV key certainly} in tax procedure in OBYZ t.code & in t.code: OB40 , ZAV should assign to G/L account. You should have two tax codes , one for VAT - inventoried and another one for VAT- Set-Off and maintain condition record for each condition type with respective tax code.
For VAT can be inventoried, it will affect on accounting in MIGO transaction adding VAT amount to Inventory Account. For Set-Off VAT, it will affect in MIRO transaction.
Regards,
Biju K