Tax in credit Memo

Hello,
I have a doubt regarding tax posting in credit memo.
When we create an invoice , let us say we charged 12% of tax of final price $1000, means $120/-, which will post to a seperate account.
when we create a credit memo with reference to the invoice I don't find a tax condition in that. While posting the credit memo the accounting entires from the invoice will be nullified by the credit posting, but what about tax?
Prase

Dear Prasanth
If original invoice have tax conditions, then In Credit Memo also, tax values will flow.
thanks
G. Lakshmipathi

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US rebate credit memo without tax

Hi experts,
I have a issue for US rebate settlement. Almost all US states do not allow tax credit, so in our rebate credit memoes, we should not pay tax to the cusomter. Currently, our user remove the tax classification indicator in credit memo request every time to make sure there will be no tax in credit memo. Now user have a request to make default to no tax for all US rebate settlement.
Actually, tax classifiction indicator is the standard SAP solution to control the tax, but our user do not want to do it manually every time. We can remove all tax condition types in our rebate pricing procedure and then there will be no tax at all. However, there is a risk that 1 or 2 states allow tax credit.
Does any one have same experience? Is any other better way to satisfy this requirement?
Thanks in advance,
DL

Apart from the suggestions already given, you can also consider the following.
1) Create a new tax code in FTXP where you dont maintain tax percent against the tax condition type.
2) For tax condition type UTXJ / MWST, have one more combination in V/07 with the document type for debit memo and credit memo
3) Assign the above tax code to this new combination in VK11
4) Now create a debit memo or credit memo and see how it works.
thanks
G. Lakshmipathi

Exice tax in case of credit memo's

Hi All,
I have a scenario where in we are supplying some matrrials to our customers . This material also has the federal excise tax which we charge in the form of a condition type and which is charged on the unit price of the material .
For Ex ;
Material ABC - PR00 - $ 100
Excise tax - (XYZ) - $ 2.00
My business user says that whenever they supply materials to their customers (say 10 quantity ) , they initially suply through a sales order which is a very normal scenario.
Assuming that the end user uses only 5 out of the 10, my business creates a credit memo for the remaining 5 on the end user . This is the present process.
But since my business says that they will pay back only the tax part to the end user and not the unit price of the material ( $ 100 in the above example for remaining 5 qts) , they don't want to issue a credit memo with the material ABC( since it has the unit price + tax ) in the sales order .
My business is coming up with a suggestion saying that we can create a dummy material ( say XXXX) and add this as a second line item in the sales order . And against this dummy material the excise amount will be charged . This is because they feel that whenever they create a credit memo they will use this dummy material (XXXX)and not the original material ( ABC) . They say they have some SoX compliance issues.
The above idea seems to be meaning less and sensless to me as this is not the best practice and secondly since this is a dummy material , I will get into problems maintaining stock and while doing a delivery ,PGI etc ...
My question to the forum is that , is there a way where in if I create a credit memo to the customer , I must be paying back only the tax amount (XYZ) and not the entire amount ( base price + tax).
To Illustrate the above example:
The original sales order will have netvalue of ($1000 ( $100 * 10)
Excise tax as ($ 2*10 ) = $ 20
so When I create the credit memo for the 5 unused quantities I should pay the end user only $10 ($2 * 5).
I am not sure whether (creating a Invoice correction request RK, will solve this issue).
I need some really good recommendations to handle the above scenario.
Thanks
Sridhar.

This is a standard SAP functionality. Usually a credit memo is referenced to an invoice and if you don't have a reference to an invoice SAP would consider that credit memo as due immediatly.
If you have an invoice to be referenced to this credit memo enter the invoice number in the invoice reference field in FB75 > payment tab and then enter the payment term. If you don't have an invoice reference enter V in the invoice reference field and then the payment term, system will calculate net due date based on payment term.

A/r credit memo for tax only

Hello,
I need to do an a/r credit memo for sales tax only. Reason: customer was charged sales tax when he should have been exempt.
Problem: I need this credit and tax amount to show up on my Tax Report under Financials, Financial Reports, Accounting, Tax, Tax Report so I am not overpaying our taxes (I'm running the report using the By Tax Code tab). This report only pulls tax amounts from the variables area in the lower right of an credit memo or invoice and is dependent upon an dollar amount item being listed in the line items of the credit or invoice. Plus, I also need the sales dollar amount that relates to this tax to show in the Total Amount column on the tax report as this column is used for our gross sales that are reported to the state. But I can't put an item with a dollar amt on the credit memo as it will mess up the total dollar amt of the credit memo, plus will reflect incorrectly on sales analysis reports.
How can I do an a/r credit memo for sales tax only that will reflect correctly on this report?
Thanks for your help,
Shelby

If you are using SBO 2007, you could create a Tax type row and achieve this. If it is 2005 then you would have to probably do a JE.
Suda

Tax in a/p credit memo is missing?

I create a/p credit memo by DI API. This document is reference to a/p invoice[BaseRef property] with partial quantity and tax code in document line. Adding document was completed but total tax amount is missing.
how to create a/p credit memo use BaseRef and partial Quantity with correct tax amount?

Dear Buntareno,
Could you put out your code for checking?
Best Regards
Jane Jing
SAP Business One Forums team

A/R Credit Memo Tax Change

Hi all,
We want to punch A/R credit Memo.
When we say copy to A/R Credit Memo from A/R Invoice by selecting only one item from two items present in the invoice.
The selected item gets into A/R Credit Memo. But since 6 months are over , we are not liable for vat 12.5 %
Customer will bear the tax.
So we want to change the tax code. But , system does not allow us to change the tax code in A/R Credit Memo.
Thanking you
Malhaar

Hi Rahul,
Sorry to bother you after closing the thread.
I tried it everything went fine but invoice is remaining open.
How to close it ?
Close option is not there by right clicking .
Thanking you
Malhaar

Brazil - Withholding tax in A/R credit memos / notes

Hi all,
We have implemented a proto-type of SAP ERP in Brazil to check out the taxes and in particularly the withholding taxes (WHT). We now have a test customer and test vendor for which withholding taxes have been activated and as a result, a withholding tax windows pops up while making a manual entry in FB01. The result of 4 test cases is as follows:
1) Manual entry A/P invoice => WHT data can be entered in pop-up window => OK
2) Manual entry A/P credit note => WHT data can be entered in pop-up window => OK
3) Manual entry A/R invoice => WHT data can be entered in pop-up window => OK
4) Manual entry A/R credit note => Pop-up window does not appear so WHT data can NOT be entered => not OK
I am puzzled why the WHT pop-up window does not show for case 4. I must be able to post a credit memo in case an incorrect outgoing invoice was originally posted in the external system according to the following workflow:
1) Outgoing A/R invoice is issued including WHT with doc.number 123456
2) More invoices to other customers are issued with doc. numbers 123457 and 123458
3) We now find that the invoice 1) was incorrect so want to issue a credit note with the orignal (WHT) values whereby the credit note receives doc.number 123459
4) Now we re-issue the corrected invoice including WHT with doc.number 123460
Within SAP, I could use FB08 of course for the reversal, but this won't work in the situation above where my document number is provided by the external system.
Does anyone have experiences with WHT in Brazil and is our customising incorrect or is anyone aware of a common business practise why the WHT pop-up window does not appear for the outgoing A/R credit note.
Thanks a lot in advance.
René

Hi Rene,
I'm facing the same problem with the Withholding Tax in Mexico regarding A/R Credti Memos not being able to be posted. You mentioned that a posting key was the solution, could you please explain to me in more detail how does this posting key solution works?
I have reviewed all of the configuration and nothing seems to work.
Thanks a lot in advance!
Nataly Hernández

Withholding Tax in FB75 Recording - Creation of Credit Memo

Hi Xperts,
Here I have one problem while Creating Credit Memo using BDC.
        - I am trying to write a BDC for transaction FB75 ( Creation of Credit Memo)
        - All things are going fine except Withholding Tax part.
        - Transaction FB75 have a Tab "Withholding Tax".
        - Here, there is a Table control with 6 rows.
        - While creating Credit Memo it populate this table control with Withholding taxes.
        - The main task is,<b>Based on certain condition, I want to clear few Withholding tax values.</b>
        - If This table control has only 6 rows populated, then there is no orblem.
        - But in case of more then 6 withholding tax values i need to scroll down and process, however, that again we can do using p++ or P+ things.
        - Problem is, in this case we are not able to scroll down or page down which create a problem in accessing other rows.
        - What would b the solution......?
          Lets have brain Game for all ABAP Consultants................
Thanks in Advance,
Chetan Joshi.

Hi Vijay
credit memo request is a sales document used in complaints processing to request credit for a customer.
EXAMP--->
If the price calculated for the customer was too high (for example, with the wrong scaled prices or because a discount was forgotten), you can create a credit memo request. The credit memo request can be automatically blocked for checking. Once it has been approved, you can remove the block.
The system uses the credit memo request to create a credit memo.
the credit memo request(CR) Iis created ith referance to invoice based on configuration settings in vov8 and credit memo(g2)created refarance to credit memo request
refer to the links below.. might be of some use to ..
Credit Memo
http://help.sap.com/erp2005_ehp_02/helpdata/en/a8/b99890452b11d189430000e829fbbd/frameset.htm
Creating Credit Memo / Debit Memo
http://help.sap.com/erp2005_ehp_02/helpdata/en/dd/561076545a11d1a7020000e829fd11/frameset.htm
Creating Credit Memo / Debit Memo Requests
http://help.sap.com/erp2005_ehp_02/helpdata/en/dd/55fed1545a11d1a7020000e829fd11/frameset.htm
Credit & Debit Memos
http://help.sap.com/erp2005_ehp_02/helpdata/en/a2/40418a496e11d3b3850008c719be0f/frameset.htm
Processing Credit Memo : Example
http://help.sap.com/erp2005_ehp_02/helpdata/en/4e/b3c399a1f711d194e700a0c9306794/frameset.htm
Regards,
Ramana

Credit memo incorrect tax JIN7 is appearing?

Hi gurus,
i have a issue where UTXJ- is apeearing as 2% as well as JIN7 is appearin 2%.Utxj in condition record is maintained in vk11 it is ok.
But incae of JIN7 there is no condition record maintained but still it is fetching 2%.In analysis also I have seen there is no record but showing condition record met. I got the tax code as A2.The same A2 tax code is maintained in UTXJ.In ftxp also 2% maintained in against JIN7.
My question where In JIN7 where this 2% is coming?when i delete the UTXJ condition record both UTXJ and JIN7 is not appearing in the credit memo?CAn you give me some idea?
Regards,
Debesh

For utxj condition record in maintained 2%.both are having same tax code
you should maintain as 100% and not 2% in VK11
I have already given a suggestion as above and only thing is you have to try.
G. Lakshmipathi

Regarding rate, sales tax and discounts for credit memo request and returns

Dear ALL,
Rate column is not displaying for credit memo request. suppose credit memo should be given due price diifererence
with referance to billing documnet credit memo request to rised. but if i want to edit rate column is not available.
how vat and discount has to be captured in case of rate diifferance for credit memo.
In case of returns will taxes applicable for returns credit memo
Gl accounts for credit memo same as billing or different GL accounts to be maintained or not
client has the scenario that if credit memo request has been rised for with referance to billing due to rate differance.
If customer returns materilas belongs to same billing. so based on the returns order returns credit memo to be rised .
But how the sap captures exact price of the materila during returns. ie; price modified during credit memo request.
Thanks & Regards
ramesh

HI,
Remove all the other condition types from the procedure and keep only those which you need.
Regards
Abhilash

Invoice Tax left after create credit memo (Receivable)

Hi All,
I have problem after creating Credit Memo(CM) in Receivable. The invoice line become 0 but invoice tax still appear.
It's caused the tax in CM is 0, even the line value have match value.
Can anyone help me?
Best regards,
Erie

Anyone help?

Withholding Tax all Condtion table not appearing in Rebate Credit memo

Hi
I am finding issue in rebate credit memo.
Issue: In Acces sequence I have table 397 and extended 397 with additional fields.
In normel credit memo I am able to find all these table in sales order Pricing Analysis tab.
But in rebate credit memo, I am not able to find all table. Credit memo is showing 397 table but not showing ztable.
Please check below screen shot for details
1. 397 and 988 are identical and its appearing in rebate credit memo.
I created 988 just to verify if any thing wrong in ztable generation or any thing missing to map.
987 is extended table with addtional field sales doc. Type, Item category and its not appearing in Rebate credit memo.
2. Rebate credit memo showing 988 and 397 table
3. Normel credit memo showing all three table
Question : How to get all three table in Rebate Credit memo?
If 988 is appearing than why 987 is not populating.
Both are Ztable and created together.
I tried many combination but extended ztable not coming in rebate credit memo
Regards
Neeraj

Hi JP,
Thanks
Routine 923 created as per SAP note 178824. And I am finding this issue only for rebate credit memo request.
This condtion type (withholding tax ) is not part of rebate condtion. It is part of standard pricing procedure same like MWST.
In Normel credit Memo (CR) all access assigned to this access sequnce is visible in sales order pricing analysis.
But rebate credit memo request (B3) not showing all access (as in above screen shot). It shows only 2 access out of 3 access.
One more addition
If I am maintaining condtion record for visible access in rebate Credt memo request i.e. country / Tax relevant classifcation.
SAP disble it in rebate credit memo request order.
But normel Tax (MWST) is appearing in rebate credim memo request.
I am not sure if this is due to standard sap.
For Thailand we require withholding tax for Rebate credit memo.
Please advice if any one can give some input on this.
Regads
Neeraj

Problem with credit memo and withholding tax

Please, I need your help:
I have tried pay some invoice, each one does not exceed the minimum amount for Withholding Tax , but the adding of them exceed the Max Amounts for Withholding Tax Codes. For this I am using u201CBase exempt amt check at pymt doc level u201C and It works, the problem is when I have a credit memo the system does not work well subtracting withholding tax

Dear,
please kindly open a message into Your market place for for such a problem. You need a fix.
Thanks.
Mauri

F110: how to pay an invoice with Withholding Tax and a credit memo?

Hi All,
in my SAP I've defined a Withholding Tax type for Payment Posting.
I've posted a vendor invoice with with Withholding Tax.
Later I've posted a credit memo with Withholding Tax which must compensate the prevuois invoice.
When I launch t.code F110, SAP, in the right manner, proposes to pay the invoice less the amount of the credit memo.
But the calculation of the Withholding Tax (that it should post al the payment time) is wrong: SAP proposes to post the amount of the Withholding Tax recorded in the table WITH_ITEM at the moment of the posting of the invoice. Instead, from it, SAP should detract the amount of the Withholding Tax recorded in the table WITH_ITEM at the moment of the posting of the credit memo.
Why does SAP doesn't consider the amount of the Withholding Tax of the credit memo?
Could anyone help me?
Thanks

Dear Rossi,
if You defined the WT TYPE at the payment time this means that the WT amount will be calculated at posted during the F110 run as per the invoice as per the credit memo.
If they are the same amounts and refer to the same wt type and code, when You run F110, they should match even for the WT calculation. It is clear that if You inserted manually the WT base amount or the WT amount into the invoice, the system will not do any automatic calculation but it will use these amounts that can be different from the one auto matically calculated by the system for the credit memo.
I hope this can help You.
Mauri

Manual AP Credit Memo- Need to change Withholind tax Liable to YES

Hi ALL
We created Manual AP Invoice for a supplier ( Service Type) and there should be a witholding tax involve.
When we tried to change the withholding tax from NO to YES, we cannot seem to edit the Field.
We already check the Business partner Master data. The BP we use has a default wihlding tax already.
We already closed SAP B1 and record the same transaction hoping that we need to refreash the set up before we can edit the Wiholding tax from NO to YES
Can anyone tell me if we can change the Withholding tax liable field from NO to YES if we create manual AP Credit Memo? Is yes how?
We are currently using 2005B PL 43
Regards,
Amy

Hi,
Following points may be helpful regarding your issue :
>A credit memo which is not based on an invoice is not liable to WT.
>In a credit memo which is based on an invoice, the WT amounts will be taken from the invoice.
>You can change the WT amount in the Credit Memo only if the invoice is not closed or parially closed.
>You cannot choose a WT code that is not related to the invoice.
>In addition, the WT amount cannot be higher than the WT amount in the invoice.
Hope it helps.
Kind Regards,
Jitin
SAP Business One Forum Team

Tax in credit Memo

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