Service Tax on advance payment received

Hi friends,
Out client is collecting the service tax on advance payment received from the customers and depositing the same with the department. Could you please let me know how we can adjust automatically the same when he is raising the actual invoice against customer.
Regards
Koteswara Rao

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Service tax calculation for payments made and posting as noted items in FI

Hi all,
I have requirement to calculate service tax on customer payments made in construction company while booking a flat in building.
here we need to calculate service tax on noted items in FICO.depending on work completed and amount received we have to calculate service tax applicable for those payment made.as,I am new in this construction sector having confusion in calculation of amount.can anyone guide me through this.
Thanks in advance.
Harshada
Edited by: Harshada.up on Dec 9, 2010 6:35 AM
Moderator message: "spec dumping", please work yourself first on your requirement, obtain local help if necessary, e.g. get back to the author of your requirement.
Edited by: Thomas Zloch on Dec 9, 2010 10:53 AM

Hi Srinivas,
Can you please tell me how the service tax will get calculated in rental conditions?
I've made the following configuration settings:
Step1: RE-Fx>> Accounting>> Automatically Generated Accounting Documents>> Summarize Documents:
Under this node>> Set Item Summarization "Active" for the particular co. code.
Step 2: Defined service tax under "Tax Type" for country INDIA
Step3: Under the IMG node:
RE-Fx>> Accounting>> Integration FI-GL, FI-AR, FI-AP>> Assign Tax Code:
I've maintained Service Tax (tax type) to the country IN.
Also in the contract under posting parameters tab; i've maintained the Tax Type as Service Tax.
In conditions tab also, when I'm simulating the condition, I'm getting the correct entries, (as shown in the screen shot):
Condition Amount: 20,0000 INR
Net Cnd Crrncy: 20,000 INR (for the month of July)
Tax Cnd Crrncy: 2472 INR.
However, when I'm doing RERAPP; i'm unable to post the condition. Getting the 2 errors (screen shot attached):
1) Tax code S2 does not exist in company code E500
2) Taxes by item is activated; consequently, transfer by item is mandatory
Kindly pl. assist where I'm going worng or any configuration missing due to which I'm unable to execute RERAPP for a condition (with service tax calcultaion) for a commercial lease in contract.
Thanks
Shantanu Kar

Service tax calculation on payments

hai sap gurus.
my client has nine company codes and in every company they want to calculate service tax at the time of receiving payment from customer.i think this is not possible with f-28.can any one suggest me the solution for this trouble some problem.
thanks in advance.
R A J I N I

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.

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

Input credit on Service tax after making payment to vendors

Dear Friends,
Vendor invoice has been entered with Input service tax and payment has been made to the vendor. After making the payment, it is only clearing the vendor balance and not the input service tax G/L accounts entered on the invoice.
We tried to implement deferred tax functionality (RFUMSV50 program), but here most of the input tax codes are based on the combination of Service tax with VAT. Hence we couldnt proceed further as deferred tax functionality is not applicable for VAT portion and applicable only for Service Tax here as it is a service based industry. In short, the requirement is Input credit can be taken for Service Tax only after making payment to the vendor.
Could you please let me know is there any mechanism where we can identify whether vendor invoice has been paid or not from the Input Service Tax GL accounts (either in FBL3N or FAGLL03 tcode). Based on that if the document is cleared, then my client will only take all the cleared documents' input service tax amounts and will set off with the output service tax.
Regards,
Dwarak.

HI,
Kindly go through the SAP note no.921634 & do the configuration accordingly.
Regards
Anuj

Service Tax on Down payment is also getting cleared when clearing Customer

Hi,
when i pass down payment the entry is as follows
Bank A/c Dr              10000
Customer A/c Cr        9000 (Special GL)
Service Tax A/c Cr    1000
When i clear the down payment against invoice the entry is as follows
Customer A/c   Dr 9000   (Special GL)
Service Tax A/c Dr 1000
Customer A/c Cr    10000
But i should clear only 9000 not 10000. and service tax also should not get reversed when clearing doc.
And could not find any specific configuration in resolving the above issue.
Please provide any help on resolving the above issue.
Thanks and Regards,
G VINOD

Hi Asheesh,
Thanks for promot reply.
The link which u have assigned is all about WHT (TDS) not relating to Service tax.
Both are different. and i too have checked the same.
But still not able to resolve the issue.
Please provide the inputs.
Thanks and Regards,
G VINOD

Creation of DPR for advance payment to be made to customer

Hi Experts
Can I create DPR for advance payment to be made to Customer (thru Customer Code) thru tocde F-37 or any other way ? I understand tcode f-37 is used for advance payment to be received / received from customer. Tried by changing config thru FBKP but it creates DPR for advance payment received only.
Whether this is possible ?
Regards
Vimal

I want to make Loan Payment / Shares Application Money Payment from Parent Company to Subsidiary Company. Treating subsidiary copmany as customer.
Actually want to know whether DPR for advance payment to customer is possible or not ?
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Vimal

Advance payment in SO

Hello Experts,
My client gets the 70% advance payment once he sends the proforma invoice.My query is that once he gets the payment he will do the manual advance payment entry.But my client wants the payment shoud reflect the SO.I understand it has link with customer but the client wants to see in the SO.When he creates the advance payment it shoud reflect to the respective SO & the user should able to view in the SO that the 70% payment has been received.
OR
Can we apply the customer prepayment in Sales order entry instead of AR?
Kindly suggest.
Thanks
Shri..

Hello,
Your client receives 70% advance payment after receiving Proforma Invoice - This means that Sales Order is already created & you want to view the amount of advance payment received in the Sales Order?
I doubt this is possible in SAP Standard. My suggestion would be to go for Enhancement which will give you this details in Additional Data B Tab of the Sales Order. In this Additional Data Tab you can define a feild which will fetch & display the amount Advance Payment received from the Customer & Other FI details (like date of Payment received, Customer Outstanding, etc) if required.
This would be purely a Enhancement (Z-development).
Hope this helps,
Thanks,
JIgnesh Mehta

Advance payment can not be used against credit limit and another sales ord

Hi,
I have advance payment scenario where customer want advance payment cannot be used against another sales order and against any credit limit.
Let me put one example.
Customer X is having credit limit of 1000 USD, if my client is received customized product order then he will take advance for this special order but customer X is already enjoying credit limit of 1000 USD. In this scenario my client wants advance payment received cannot use against any sales order and against any credit limit.
If I will post advance payment in F-29 then customer credit exposure will decrease against credit limit in FD32 which will affect normal sales order credit limit. Here customer does not want to utilize advance payment against credit limit of customer which is use for normal sales order.
Please suggest

Hi,
You can use the SAP standard documentary payment management functionality together with credit management for this purpose. You need to configure Documentary payments in SAP first. For that see below link;
[Documentary payments|http://www.learnsaptips.com/2011/09/how-to-handle-letter-of-credit-in-sap.html]
Then the advance payment has to be created as a financial document in SAP. This is just a SD only document and no impact to FI. During sales order creation you can assign this document number in to your sales document. It is possible to add it to sales order header as well as to individual line items.
If the attached financial document is sufficient to cover the value of the total sales order (If you attached to header) or value of the line item (If you attach it to a line item), system will NOT take that value for credit exposure calculation.
As far as I understood from your question, this is exactly what you're looking for.
Best regards,
Anupa

Pop Up of Advance Payment in Sales Order

hi Gurus
Actually i have a query that when i am going to create the sales order the system should pop up the dialouge box indicating the customers's advance payment
And against that advance payment the saes order is created
if thye sales order exceeds that advance payment
the system should gives a pop up of indicating that amt like same in Credit control
bcoz the customer pays in advance the money to the company for the the material which has he ordered
so whats the setting for this
And the Advance payment is variable means it changes daily acording to customer's order
Suitable answers will be rewarded
Regards
Amol gawai
Edited by: AMOL GAWAI on Jun 7, 2008 4:41 PM

Dear Amol,
I think your issue can be addressed by using Credit control area. Please do the following:
a) Define a credit control area for the customer.
b) Maintain credit limit as 1 Rupee T-code - FD32
c) Whenever the customer gives you a advance payment the same shall be entered in the system thru FI route and using the while FI posting in "More Data" the relevant Credit control area should be entered.
d) By doing the above the advance payment received from the customer shall be reflected as "Special Liability" in the Credit control area (FD33). Status Tab in FD32.
e) Now this advance payment will act as the credit limit of the customer. So after this if the Sales order value exceeds this limit the Warning or Error message can be set.
Hope the above works for you.
REWARD if it helps you!!
Regards,
Ajinkya

Advance payments

Hi,
I have an advance payment received from vendor, plz tell me how to track this in SAP. Sorry i am new to SAP system.
Points will be assigned.
Kavi

Hi,
I think you are taking about advance amount paid to vendor... if is so, read the below processes.
It is slightly a big process, you have to create a SPL GL indicators in FBKP > Special GL, for down payment and assign the Vendor Recon account to SPL GL Recon. account (should be recon account type K) and give the required properties in properties tab.
Now, if you pay an advance amount to a vendor, you can use T Code F-47 / F-48 with that SPL GL indicator and make the payments.
When you book the invoice for that vendor, system will give you an information that the vendor is having advance amount. After posting the vendor invoice, you have to clear the advance payment by using T Code F-54.
Hope it clears you doubt,
Saravanan.A

Advance payments in sales

Hi guru's
i have any an issue can provide solution asap.
issue:
1. System should accept the 100% advance payment against any sales order.
eg sales order raised     on 15 jan 2012 with rs 1000,00.00, validity of S.o is 30 jan 2012
    100% advance should receive before 25 jan 2012, after 25 jan sys should not accept any advance payment for this S.O
    validity column should be there in va01
delivery should take place only for the amount of advance it has
eg sales order is placed for rs 100000 on 15 jan 2012
on 15 jan advance received for rs rs 40000
on 16 jan raised delivery for rs 20000
on 17 jan trying to raise delivery for rs 50000.( it should be blocked because advance payment received for rs 40000.00 out of that rs 20000.00 delivery is made, so he has just rs 20000.00 advance and delivery is for rs 50000.00 so delivery should be blocked.
thanks in advance
Edited by: imam sk on Jan 17, 2012 4:43 AM

Hi narain
Your requirement can be fulfilled through down payment configurations
Make the following down payment configurations :
item category group - 0005
item category - TAO
for this TAO item category a billing plan 01 (milestone billing plan -01) will be assigned and its billing relevance should be I which is order related billing .
billing doc type - FAZ
cancellation billing doc type - FAS
maintain a condition type AZWR which is down payment settlement , it has requirement as 2 and calc type as 48 acct key as ERL
Now when you enter a material in line item 10 and go to item data , you can see the billing plan tab.
now go to billing plan tab and enter the start date and enter the dates on which billing has to be done and then in billing request enter 0009 which is for down payment.once u press enter automatically it all the dates get blocked and billing request by default you get as 1 , that you change it to 4 or 5 . 4 is for down payment at value basis and 5 is for down payment at percentage basis. and beside that there will be a billing type .assign billing doc type as FAZ. to all dates
check the copying requirements are there at VTFA as 20 and for item category TAO copying requirements 23 is maintained or not
now do the cycle    OR - LF - FAZ (billing doc type)
Regards
Srinath

Sd-delivery should be linked to advance payment-

on 17 jan 2012 sales order no (1000)raised for rs 5,000,00
advance payment received on 20 jan 2012 rs 2,000,00
validity of the sales order(1000) is on 30 jan 2012
on 21 delivery is to be taken for rs 3,000,00- sys should through error because advance payment is for rs 2,000,00-
so delivery quantity should be changed to rs 2,000,00 so system should accept the delivery

Hi
For your requirement check point below
1.Set creditmanagement at delivery level, and customer credit limit as ZROO in this case system allow delivery only for advance payment,if advance payment is crossed system will through error.
2OR you need to be set validation by using exit to compare particular customer advance payment before processing delivery .if delivery amout is more than advance payment through the error message.
I hope these point give some clarity.
Br,
Srinivasa

Service tax settoff with excise

Dear Sir,
MY company is a manufacturing company, where it pays the service tax &the invoice value to the vendor in total, now while doing stock transport order, the excise amount which needs to be paid have to be adjusted with the service tax collected on payment to vendor, pls tell me how to settoff service tax with excise
pls help asap.
with regards
suman

Hi suman,
This forum area is for issues or questions relating to the "SAPGui". This is not the correct area to post your question.
Cheers
Shaun

FB60 Service Tax entry Missing

Dear All,
While entry of Vendor Bill thru Tcode FB60, forgot entry of service Tax.
Also Payment made by Cheque for Vendor Bill.
Now how to enter Service TAx entry for that Bill.
It is not possible to reverse Payment entry. So it is not possible to reverse Vendor Bill entry also.
WHat is a way out for service tax entry now
Regards
Swati Shah

hi
if it is calculating service tax manuaaly
then go to TCode F-02/F-43 then slect post with reference the select the service tax g/l a/c & post the required amount
or
otherwise you can book a JV as mentioned above
regards
Praveen
Edited by: Praveen Chirakkel on Mar 23, 2011 8:08 AM

Service Tax on advance payment received

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