Tax Rate Determination in Credit Memos With Ref to Invoices

The requirement in US is that when the customer has changed his address to a different region, from that where the services was supplied (The region in which the customer (ship-to party) was residing when the invoice was raised) and if a credit memo is raised with reference to this invoice, then the taxes applicable on the credit memo for this customer should be the rates applicable for the state where the original invoice was raised. However currently in SAP the new customer address is updated in the billing document (invoice that was raised for the region where the customer had his place of business previously) and hence the original region code in the invoice will not be available and will be overridden with new region code.
Consider the following example:
1 - Invoice raised on 01-Jan-2010 to a customer whose region is Florida and tax rate is "X %"
2 - On 01-Feb-2010 the customer in Florida changes his place of business to Texas region.
3 - On 01-March-2010 a credit memo is raised with reference to the invoice dated 01-Jan-2010 u2013 On this credit memo the tax rate applicable will be of the region of Texas u2013 Example u201CY%u201D
The requirement is that in the credit memo the system should capture the original region code or there should be a provision to change the region code of the customer (ship-to party) at line item level u2013 so that the tax determined is applicable to the region where the customeru2019s place of business originally existed.
From our side we did check the SAP screen for Creation of contract/Order (VA41/VA01) u2013 However we were unable to find the customer region field in these screens at line item level.
We request you to please look into this at the earliest and let us know what the options that exist for this are.
Please also let us know should you require any clarifications with reference to the above requirement.
Regards
Siddharth Sridhar

Hi Siddharth,
As for the region code that you mentioned, in fact yes, you can change during transaction creation, and Region is coming from the customer master record that you maintained.
You can find it at the Item level --> Partners, but you will not be able to change the Region there.
To change it, double click on the Sold-to Party at Header level, then select Sold-to Party --> Details.. Here you can change the Region accordingly. It will reflect accordingly at the Item level --> Partners.
Note: This change will not change the central master data maintained for this customer. It will only affect this document.
Hope this helps.
Thanks.

Similar Messages

Credit memo -- with ref to invoice

Hello All,
This is my scenario:
1 Invoice with value 100.
2 Credit memo whith value 100 with ref. to invoice.
3 The system let me create more credit memos for the same invoice exceeding de invoice original value. (it just informes me that there are other credit memos) How can I prevent this ?
I checked copy control and Pos./neg. quantity--i put as "+" and in Item Category TAN- Completion Rule mark as "A".
Regards,
Ashu

Hi Ashutosh singh
Credit Memo and the invoice are different and the two r used in different scenarioes
Credit Memo is the Billing document raised for compensating the customer and the the document is raised with reference to the the Credit Memo request
The scenarios is that the customer places an order with the company and the company delivers the fgoods to the customer in which some of thm are dmaged and the customer then claims for the compensation , so the company asks the customer to return the goods to the company and simultaneously they will pay the compensation
process flow is as
Created the standard order OR
then do the deliver LF
then billing document F2
and then raise the credit memo request for the goods G2
thenBilling which is the credit memo
G2
This is the special process where the goods are received and the customer does not want the replacement of the dmaged goods and instead he wants the amout to be credited
so we have to raise the credit meemo request with reference to the standard illing document and then the credit memo request and then billing document G@
but in the standsrd invoice we havae to creatae the created the standsrd and then the delivery and then the invoice
Invoice
order (VA01)>Delivery(VL01N)>Change Delivery(VL02N)&PGI>INVOICE
EX:
Order type:OR
credit memo:
for the return material or discount is missing for the material,we create credit memo request.credit memo has sent to customer
order (VA01)>CREDIT MEMO(VF01).
NO DELIVERY PROCESS.WITH REF. to BILLING DOCUMENT,we create credit memo request.
EX:
Order type:G2.
The below link will help u
http://able.harvard.edu/ar/wi/create-credit-memo.pdf
http://web.mit.edu/sapr3/windocs/fopcs06f.htm
Reward if useful to u

Sales Return Process-Invoice(Credit Memo) with ref. to delivery

Dear All,
I am doing sales return process.
Sales Order-RE
Delivery-LR
Invoice-RE,
with ref. to sales order it is allowing me to create invoice.
But,with ref. to delivery it is not allowing.
It is giving "The document is not relevant for billing".
I have changed item category REN for delivery (A) related billing.
Also changed req. copy control setting.
Can anybody guide on this issue.
Best Regards
Sainath

Hello,
Normally return credit memo will be generated with reference to the retrun order, and that is the standard SAP process. Do you have any specific requirements to have the credit memo with reference to a retrun delivery?
The Item category REN Billing Relevence will be B as per SAP standard, if you wish to have a delivery related credit RE, the make this to A .
Maintain the Delivery to Billing Copying control in VTFL for LR --> RE, add the item categroy REN.
Maintain the copying requirements for header as 3 Header Del Rel and for item as 4 Deliv-Related item .
Once these setting are done, then check whether the RE billing type is triggering from LR?
Prase

Credit memo with ref to billing document

Dear All ,
i am facing a problem while creating a credit memo request with reference to the billing document .
Actully there is a seperate pricing procedure maintained for the credit memo and billing doc , but while creating the credit memo w.r t bolling doc ,, the pricing procedure of the billing document is getting copied .
pls help to get out of this prob .
Thanks n regards
satish

Hi
Please checkout the Documentary Pricing Procedure you have maintained for the Order Type: CR (Credit Memo Request). If you have maintained the same Pricing Procedure for Standard Sale (the Billing Document-F2) and for Credit Memo, the Pricing will be that of the Billing Document (Checkout OVKK for the Pricing Procedure being determined for your Sales Area and the Cust/Documentary pricing Procedure combination.
Regards
Ramana ND
PS: I assume you have taken care of the Copy Control in VTAF. You can always verify the standard settings in VTAF for the F2-CR Document types

Lockbox - credit memo w/ref to invoice selected when paying invoice only

Hello Experts,
We are implementing automation of lockbox and have encoutntered issues when paying invoices - create credit memos inreference to invoice are also selected which casues the payment to go "On account" as opposed to "Applied"
E.x WE have Invoice# 123 for $100.00. We created a credit memo# 312 w/ref to invoice 123 (XBLNR for credit memo = 123) for $20.00.
The customer is now paying invoice 123 for $100.00 and our business process is to refund the cusotmer later for $20.00 for which he received a credit.
In FLBP, when we process the payment, the status is "On Account" becasue the open item total to $80.00 ($100.00 - $20.00).
Has anybody encountered a similar issue? Any thoughts on how to address this?
Thanks,
Leela

It was a problem with the payment advice. The Payment amount field needed to be filled for the program to pick only the invoice.
Thanks,
Leela

Error while creating a credit memo with reference to invoice

HI aLL,
I am facing one issue while creating a credit memo request in VA01 with reference to invoice.
Our project stock is valuated stock.
When we try top copy the error pops up" Valuated project stock not allowed with customer stock." and the line item is not copied in the credit memo.
Diagnosis:The entered wbs manages a valuated project stock,at the same time sales order stock is maintained on sales order line item.this combo is not allowed as different valuation methods within a project is not allowed.
Tarun Kapur

Dear Tarun!
1.Within a project we can get stock only in PROJECT or in SALES ORDER STOCK.....a single material can not be a both place at particular time ..so keep only one
Project Stock or Sales Order Stock..
2.Check DIP PRofile (ODP1) in usage BILLING AND RESULT ANALYSIS -Charectiristic -SDOC TYPE CMR.....are you selecting right document to which you want to copy .....
Rewards Points if usefull
Regards
SMITH

How can we create credit memo with reference to INV

Hi,
Pls tell how can we post credit memo with reference to Invoice which is posted through SD.
Is there any use with reference to field in T.Code FB75.
Thanks in advance,
Padmaja

Hi Vijay,
I could not found any field for Inv. reference in the Payment Tab of T.Code FB75.
Is there any facility in SAP to create Credit Memo for a particular customer with reference to Invoice. All the details of that Invoice should get updated in the credit memo automatically.
Thanks in advance,
Padmaja

Due date calculation for the credit memo with invoice reference.

Hi,
When we create the credit memo with reference to invoice, the due date for the credit memo is getting copied from Invoice. In this case if the invoice is due on 31.12.2008 and the credit memo is created on 10.09.2009, then the credit memo due date is appearing as 31.12.2008. It should be 10.09.2009 as per the setting in VOFA billing type customisation in "Credit Memo w/vldt".
I would like to know how to customise the below requirement.
If the reference invoice is due after the credit memo creation, the the credit memo should due as per the invoice date.
If the invoice due is past & then the credit memo due date should be Immediate i.e. Due Immediately.
Thanks in advance for help.
Regards,
Nithin

I doubt there is such option. From the past projects I do remember that we made a change in the form to print the document date as 'Due Date' for credit memos. Credit memos were paid at once when they were processed and I think that payment term was copied from the original invoice, which made their due date far in future.

Why need to link credit memo with invoice

Hi, gurus,
I received an AP invoice valued $2222 and then received a credit memo valued $222 about 1 week later.
Now I need to make payment.
I was told it's good to link credit memo with invoice by entering invoice number in the field "invoice reference" when creating credit memo. But I'm not sure why it's better because system will pick up both items anyway when i entered $ 2000 using f-53 to make outgoing payment.
The only reason i can think of is this link will guarantee that credit memo has the same terms of payment with invoice.
Is there any other good reasons? Any help will be appreciated.

Dear,
We need to link credit memo with invoice against for two obvious reasons
1.. Future tracking of all credit memo i-e if we gave excess credits to vendor then it was against which invoice. This will create linkage and tracking of credit memo with invoice that will be shown in FBL1N .
2..At the end of specific time period ,month or quarter ,its a normal practise to reconcile vendor balance as per SAP ledger to that of vendor's own book. At that time you will need credit memo track also that against which invoice was the credit given.
This all can be achived after posting credit memo with refrence to invoice number. Audit perpective should also be kept in mind. Hope this will help you
Regards

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

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.

CIN - tax rate determination

hi all,
how define tax rate determination during with CIN. Will system retrive tax rate from the definition made J1ID, or , the tax rate given in FTXP for the tax code.
Also, plz explaing how account determination takes place - through tax code or 'Specify G/L Accounts per Excise Transaction' in Log-gen> 'tax on goods mvt' > ind > account det.
plz provide any link for complete setting to be made to enable cin.

Hello
For TAXINN, the duty rates are picked from the condition records maintained in FV11.
And in TAXINJ procedure, the duty rates are picked from what maintained in J1iD and tax codes in FV11.
The excise accounts are determined through Specify G/L Accounts per Excise Transaction' in Log-gen> 'tax on goods mvt' > ind > account det. only.
You are only able to view that in FTXP.
Regards

MIRO : credit memo with a foreign currency

Hi,
i want to post a credit memo against an invoice posted with a foreign currency.
what's the rate exchange used by the system in this credit memo ?
Because i want to have the same amount in the credit memo as in the invoice, so i choose the same rate of the invcoice in the credit memo (in MIRO) but the system don't accept !!??
Please i want to have 00,00 as a difference between the invoice and the credit memo.
I need ur help
Regards.

Thanks,
Yes MaDhU i tried to change the exchange rate in details tab of MIRO but the conversion is done with an other rate (and not the one that 's maintened in OB08)
when i change the amount manually the system don't accept too.
Please advise

Tax Rate Determination

Hi All,
   I need to determine the Tax Rate in my program. I have the Tax code, Tax Jursidicion Code, Company Code, Tax Procedure and the Country available to me in my program.
Is there a function module/modules that I can use to arrive at the tax rate using the above fields.
I could find out the following function modules which could give me the tax rate however there is an issue when I use these.
FI_TAX_GET_CONDITION_TYPES -- I use this function module to get the value for KSCHL
FI_TAX_GET_KTOSL_FROM_KSCHL -- I use this function module to get the value for KTOSL
FI_TAX_GET_CONDITION -- I pass KSCHL and KTOSL along with other information to this function
                                            module to get the tax rate (KBETR).
The issue with the first function module is that it can return multiple condition types for a give tax code and tax jurisdiction code in which case there is no way to find out which one to use (or atleast I am not aware of it).
Please let me know know if there is any other function module or any way to fix this issue.
Will greatly appreciate any solution to this problem.
Thanks for all your time.
Regards,
Vam

>
Vamseedhar Kondraju wrote:
> Hi Christine,
>
>    Thank you for your reply. I am using the FM GET_TAX_PERCENTAGE for all the countries that don't
>    use the Jursidiction Code. If I pass the Jurisdiction code to this FM, it doesn't return any records.
>    Hence, I started looking for other options.
>    Regarding the second function module, it does the same thing that the other first one I had mentioned
>    before. It can return two tax rates and there is no way that I can pick a unique one.
>
> Thank you,
> Vam
There must be some way of matching each tax code to single rate. What happens in your MIRO when all they can enter is a tax code for which it must be able to get a single rate? Running ST05 trace against MIRO might give you some clues.
The FMs mentioned all work for me here to get a single rate, and if they don't do the same for you I guess you'll need to talk to your functional consultants to get some more information on how the tax codes have been set up.

Create Credit memo with reference to billing in VF01

Hi all:
I want to create a credit memo with direct reference to the original billing. Thus the creation of CMR is not required. This is the new feature as of release 4.5a. In SAP system, I've done the configuration for copying control from billing document to billing document, source (F2) target (G2). Copying requirement 027. Pos/neg qty = + and Pricing type = D. I can create a credit memo with reference to a billing now. However, the system allow multiple credit memos. Duplicate credit memo are unwanted in the system.
How to control the system to avoid duplicate credit memo?
Thanks and regards,
Sim

Hi Mei,
   In t-code "VTFF" under your item category,the field VBRK/VBRP skuldn't be 001.
   Keep them as zero.
   Reward points if it helps.
Regards
Karan

Tax Rate Determination in Credit Memos With Ref to Invoices

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