Down Payment in Deferred Service tax Scenario

Hello all
Has any1 come across a scenario where there is a Down Payment reciept from the customer, then an invoice is raised for the same and clearing is done and the balance amount is recieved from the customer in F-28. Then the T.Code S_AC0_52000644 - Tax Reports -> General -> Deferred Tax -> Deferred Tax Transfer (New) is executed. Is the same supported? What are the steps and wat tax codes do we need to use at what cycle level?
Also, is S_AC0_52000644 - Tax Reports -> General -> Deferred Tax -> Deferred Tax Transfer (New) supported when we have multiple line items in the tax code e.g Service Tax with VAT.
Any help will be highly appreciated.
Thanks in advance
Hrishi

hello Diana.
I solve a similar problem wite notes.
Regards.
Edited by: Rafael Vazq on Dec 7, 2009 12:13 PM

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Advance payment and down payment with two diffierent tax code

HI expert!!!
i have one scenario that advance payment and down payment with different tax code.
in this time, advance payement post to vendor with po number, we do not know how to use tax code V1(deductable tax) or VF(Non-deductable tax), so we post advance payement amount by tax code V1(deductable) even though the amount included both. but we must know how amount is defined deductable tax or non-deductable tax when invoice.
when we want to post down payment with VF , we could not post it because advance payement posted with V1 tax code.
this is main problem with my scenario.
and as i know, can i post two advance payement to same vendor and same po item?, i can't do it with my system.
only one advacne payment is possible with one vendor and one po item. or amount of advance payment is all cleared by down payment, then i can post another advance payment to same vendor. is it standard process with po?
thank you in advance!!

hi,
As per my knowledge their is no difference between advance payment and downpayment.
and tax code is used for taxes purpose not for the payment terms.
taxcode is created in ftxp.and related percentages are maintained in fv11.
ex:-
if i want excise duty - 10% on basic value
education cesse 2% on excise duty
sec.education cesses 1% on excise duty
then fitst i have to create 3 condition types and that 3 condition types are used in my taxprocedure and that taxprocedure is assigned to country code..
after that i am created one taxcode in ftxp like v1= exciseduty10%educatiocess2%sec.edu.cesses1% with this description.
and given the values for that conditions in fv11.
and used that v1 taxcode in your p.o in invoice tab.
and payment terms are came from vendor not from taxcode.
Thanking you.

Down Payment Request Percentage affects tax

Hi Experts,
I have an issue to be cleared in A/P Down Payment Invoice.
Scenario:
Purchase Order has a certain tax amount in addition to the total value. I try to add a A/P Down Payment invoice for this order. When the DPM is changed to a particular percentage, the tax value also changes (reduces) to the DPM % as it happens to the order value.
My requirement is that the DPM % should affect the order value alone and not the tax. I tried changing the No of Instalments too. Can any one suggest me a solution?
Regards,
Madhavan

Hi,
In the down payment invoice the tax also will be calculated, this is system behaviour.
You can use the outgoing payment
->Select vendor
->Check the option payment on account(At bottom of outgoing payment)
->Rt. click payment means and book the advance amount
_->If you are using 2005B link invoice option can be used
_->If you are using 2007 applied transaction can be used
for linking the advance with the invocie

Customer Down Payment request inclusive of Tax

Hello SAP Experts,
I have following requirement for down payment request scenario.
Current AS-IS situation
Sales order (VA01) ---> Prepayment Order ( VA01) --> Down payment request / Down payment Invoice ( VF01) --> accounting document of VF01
100 Rs. Net 100 Rs. Net 100 Rs. Net
20 Rs. VAT ------> 20 Rs. VAT ---------> 20 Rs. VAT ---> 100 Rs.
in this accounting document entry is happening as noted item with
DR. Customer Account ( net amount without Tax) 100
.so, after this step, I can see in FBL5N as 100 Rs. as open item for customer
TO BE Scenario
my user needs that at this step, posting should be
Dr Customer A/C - 120
Cr. customer down payment - 100
Cr. Tax - 20
can you please suggest and give your input in order to how can we achieve this.
Thank you for your input.
Regards,

Hello Jignesh,
Just a design level suggestion for your requirement.
You are looking to have a system that calculates tax during DP invoice.
Create a new Item category which has 'Billing Plan' tab enabled at Item level. Check with Abap'er to bring a custom field (check box) saying 'Tax on down payment'. Here the posting schema needs to be defined (like which account needs to be used for tax posting and its PK and D/H indicator and use some FM for tax calculation and check for zero balancing, etc.,.)
Then whenever the check box is ticked, and the Billing is performed for the DP invoice, then enable the system to calculate tax amount based on the tax classification & tax defined for the SO using the so called code written in routine or user exit. Now, the tax calculation can be achieved.
This is purely a custom suggestion (nothing to do with standard SAP). Sorry i couldnt able to provide much of a technical solution for your requirement . But still this is achievable and i worked some years back on the same.
BR, D'nesh

A/R down payment invoice not allowing tax

Hi Experts,
We use SAP Business One 2007A PL-08. While posting A/R down payment with percentage on DPM (For example 50%), the system is not calculating GST on it though we put the GST tax code in the invoice.
Any idea how this can be resolved?
Is there a workaround for this?
Thank you,

Thanks Gordon. As a workaround, we created a dummy item number for the GST to be input into the A/R Down payment invoice. The problem here is that when we add a line item for the GST using this item number, the G/L account is defaulting to customer deposits account and its now allowing us to change the G/L account to the relevant GST G/L. Is there a way we can change the G/L?
Please let me know!!
Thanks

Processing Down Payment Request with input tax

Hi Gurus,
I was trying to process the down payment request using Tcode F-47 with input tax, I am getting an error saying that "Down pmnts with taxes are not permitted when processing with jur.code". For this error I found the note 97288, but this speaks a lot about changing the pricing procedures in SD, but nothing about AP. So, can any one help me to understand what needs to be done to resolve this issue.
Thanks
Shilpa

Hi
Please check whether note 300340 is relevant for your case
S Jayaram

A/P Down Payment Invoice Item/Service Type

Dear Experts,
Just wondering why in A/P Down Payment Invoice for the Item Type, the G/L Account i can view and select the G/L Account in a List. However, in A/P Down Payment Invoice for the Service Type i ONLY can view and select the only one G/L Account which i have been set at Adminstration-> Setup-> Financial-> G/L Account Detremination-> Purchase Tab for Down Payment Clearing Account.
Your Reply is highly appreciated.
Thanks.
Regards,
Danny

The Clearing accounts is just that, a place where the down payment amount temporary sits, until it is cleared out through normal business processing. Having all the down payment amounts residing in a single expense account makes reporting this expense much easier from a General Ledger perspective.
With that being said, you can create down payment clearing accounts at the Business Partner level, this giving you the ability to use different accounts: Business Partners > Business Partner Master Data > Accounting > General Tab.
Hope that helps.
Mike

Service tax scenario in CIN

Hi,
I made the PO for services as follows:
Base amount (PB00) = Rs 100 ( value of service)
Service Tax @ 12 % = Rs 12 ( cenvatable)
Education Cess 2% = Rs 0.24 ( CENVATABLE)
Secondary Edu Cess @ 1 % = Rs 0.12 ( CENAVATABLE)
Total Value of PO = Rs 112. 36
For Rs 12.26 cenvat credit is taken.
I am using copy of TAXINJ procedure. What are the condition types I should use for :
1) service TAX
2) Edu. Cess
3) Secondary Education Cess.
JEC1, JEC2, JA1S and JA1I is already used in my procedure ZTAINJ, for the purchase activities for raw material, capital goods, spares etc,
Please give solution
with regards
Pratap

Dear Friend,
Thanks for your help.
could you please help on following also;
1) the Functionality of condition types
JSER
JSVD
JSV2
in my case which one to use? any sap note on this explaining the use?
2) the following conditions are not appearing in my system:
JSRT
JVCS
JVRD
JVRN
What is the functionality of these?
Are these related to MM or SD.if i have to create which one to copy? any sap note on this?
please suggest any study material or consulting note where I can find the application help.
my email is : [email protected]
WIth regards
Pratap

Service Tax On Down Payment and Tax Payment Wizard

Hi All,
We would like to make a down payment and apply service tax to it.
Once i create a AP Down payment invoice with the service tax, make an outgoing payment against it, create AP Invoice and adjust the down payment, now after following this procedure, when i run the tax payment wizard, the service credit available becomes zero.
It works well in case of partial payment but not 100% advance. Has anyone faced this issue??
How can this be resolved?
Thanks,
Joseph

Hi Rahul,
Exactly! The system doesnt consider the tax on DP when we check through Tax Payment Wizard.
I guess this is a missing functionality? What do you think? Because there may be a chance that the service tax may get deducted at down payment! What is your take on this?
Looking for valuable responses from other experts too!
Thanks,
Joseph

Vendor service tax

Hi
SAP GURU'S
I configured all service tax settings And posting the invoice as down payment
But the service tax is not calculating, normal entry coming like as below
Spl Customer A/c DR
    To Bank
The tax code is showing but tax not calculating.
I tried in f-43 invoice in this the tax is calculating. For reconciliation A/c i selected only tax category *.
Why at the time of down payment is not calculating service tax
Kindly anyone advice me.

Hi Subba Reddy thanks for your reply
i selected posting indicator "2"(Separate line item).
this entry for F-43
    PK BusA Acct                               INR   Amount        Tax amnt
001 31 0020 0000010191 vedor                     200,000.00-
002 40 0020 0001020003 inventory rm - I          200,000.00                 T7
003 40       0001250033 SerTax Acc Input-Ad      18,000.00                 T7
004 50       0001250036 Service Tax Payable       18,000.00-                T7
005 40       0001250034 SerTax Ses Input-Ad        360.00                    T7
006 40       0001250035 SerTax H Ses-Adv            180.00                  T7
007 50       0001250037 ST CESS Payable              360.00-                 T7
008 50       0001250038 ST HECESS Payable           180.00-                T7
The same entry i am trying for down payment f-48
at the time serivce tax is not picking
the entry is coming like below
Spl Customer A/c DR
    To Bank
i want as above entry
please suggest me.

Vendor service tax at the time of down payment

Hi sap Guru's
Service Tax payable on Vendor Advances at the time of down payment.
Requirement: New tax code X5 need to create with CST@5% on 80% of Bill value and service Tax @12.36% on 70% of Bill value. While calculating the CST amount, system should take the base value by excluding the service tax amount.
I had created the requirement and at the time of posting in F-43
The service tax calculating.
But when i am posting in F-48 the tax is not calculating. What is the reason
For down payment f-48 i need to make any configuration, or need to maintain anywhere the tax code x5
Please advice me why at the time of down payment F-48 the tax is not picking.
Thanks & Regards,
Ramesh

Thanks you very much for your reply sudhir,
If i select ,"Posting without tax allowed" check box why the system is not going to calculate the tax
And in recon account should i maintain G067. or any else.
Thanks,
Ramesh

Tax calculation on down payment

Hi all,
At the time of progress billing- there is no tax calculation for down payment for Service Invoice.
so tax calculation on down payment will be FI step through(F-29).
For e.g total contract value is 1000 and 10% is down payment..for this tax will be calculated on 900 and for 100 downpaymen the tax calculation will be through FI side.
Is it possible or correct way t do this otherwise please suggest some other solution.

Service Tax is NOT Income Tax. So, you would not calculate Service Tax downpayments. Service tax is applicable only on Service rendered and does not concern whether it is paid. (Though, if you want to avail Service tax credit, you'll have to pay for the service, which is mandatory as per the Indian Tax laws).
So, Service Tax is only calculated from the Invoice. As long as no invoice is raised, no Service tax is payable / deductable.
The above is true for India and most countries. You have not mentioned which country are you working with. If such a scenario is appropriate in your country, you'll have to consult your country version documentation.
Ravi.

Calculate tax in Vendor Down Payment

Hi,
While posting down payment to my service vendor including service tax amount in F-48 after tick the calculate tax also, it is not asking for tax code and it is not showing service tax seperately. Only vendor a/c and bank a/c's are simulating. Please tell me how to calculate tax while doing vendor down payment.
Regards,
Prasad

> Hi,
>
> Thanx for ur reply, every month we are paying through
> advance payment for internet connection including
> service tax and this is fixed amount.
1. Enter vendor down payment - gross amount (do not calculate tax)
2. Post a recurring document to your vendor account which will include the lines:
C Vendor
D Internet charge expense account
D tax
3. Allocate invoice with down payment

Withholding tax in vendor down payments

Hi Friends,
While testing a scenario of withholding tax and vendor down payment
When Vendor down payment recorded with WHT;
For down payment document Vendor line item report (FBL1N) shows withholding tax amount in withholding tax amount column, withholding tax report S_P00_07000134 is showing the down payment document with correct tax amount.
When the above Vendor down payment cleared;
For the cleared document Vendor line item report shows zero in withholding tax amount column, and the withholding tax report S_P00_07000134 is also showing neither the cleared document nor the down payment document.
If the cleared down payment is reversed;
Vendor line item report shows withholding tax amount in withholding tax amount column, withholding tax report S_P00_07000134 is showing the down payment document but with zero tax amount.
Also the WHT amount in vendor line item report in column withholding tax is being displayed without a minus(-) sign indicating a debit amount, but this amount is in fact not a debit amount, when this column is sum up it gives incorrect total.
Please share your experience on such scenario.
Regards,

Hi MAURIZIO,
Thanks for refering the SAP note, but this note speaks of inconsistency of displaying WHT info with lot of withholding tax information, this note is applicable upto Release 470. We are on ECC 6.
Regards

Withholding Tax on Down payment through F-58

When we made the down payment having with withholding tax deduction
through F-58(FBZ4) against down payment request clearing, if we give
gross amount to the extent of Withholding tax showing as not assigned
amount, If we give net amount clearing is happened properly.
But if we use manual payment for down payment through F-48 against down
payment request clearing gross amount is working fine. Same should be
applicable in case F-58(FBZ4) also.
for example we have created down payment request for Rs. 1,00,000/- and
Tax code assigned for the payment 2% (Rs 2,000/-), at he time of down
payment request clearing(F-58) if we give the amount 1,00,000/- we are
not able to clear and make the net amount paid. If we give Rs.98,000/- it
is working fine. But same logic not working in F-48.
is this program error or standard SAP logic is like that.

Dear,
this is the SAP Standard System Design.
If You create the DP using F-58, You will have to insert the bank amount minus the WT amount (net).
If You create the DP using the transaction F-48, You can insert the total bank amount because pushing the button "Create DPs" the System will scorporate it, creating the WT line item.
The result in both the cases is the same:
001 50        0000113100 Dte Bank (domestic)                  9.000,00-
002 29A      0000100214 Vendor                                    10.000,00
003 50        0000177000 Withholding tax                          1.000,00-
I hope this helps.Mauri

Down Payment in Deferred Service tax Scenario

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