Vendor down payment with input tax

Dear Expert
My client receieves down payment with input tax, to meet their legal requirement for VAT filing, they have to book entries as below;
When receieving down payment with input tax:
Dr. Down payment
Input tax
Cr. Bank
When receiveing vendor invoice for remaining AP amount:
Dr. Expense
Input tax
Cr. AP (remaining amount)
Then clear down payment by expense
Dr. Expense
Cr. Down payment
They do in this way, because input tax in down payment and input tax in remaining AP invoice should be listed as two items in their VAT report. And intput tax in down payment document is with reference field which is different from reference field in remaining AP invoice, and reference field is also one mandatory field in VAT report.
In this case, I can not use SAP standard T-code F-54 to clear down payment. But when I tried to create a manual JV to post entry with Dr. Expense and Cr. Down payment, it's OK, but then when I used F-44 to manully clear down payment doc by manual JV, I got problem because the amount in down payment is down payment amount + input tax amount, but the amount in manual JV is only down payment.
Does someone have a solution?
Thanks,
Nicole

Nicole,
Which country is this requirement for? As far as I know, there is no tax incidence on downpayment. Input tax arises only when you receive the invoice, right? Not when you receive a downpayment.

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Vendor down payments with TDS

Hi Experts
I am trying to make vendor down payment with deducting Withholding tax through transaction code F-48. At the time of simulating of the same system is giving error message
"Withholding tax amount exceeds total bank line item amounts.
Message no. 7Q320"
All configuration has been done like tax code and tax type for down payment and assinment of GL account.
Kindly advise as on urgent basis.
Kuldeep Dubey

Hi
Check the Total Debit & credit for that document
the normal JV for TDS entry in F-48 is
Vendor Dr 10000
Bank    Cr 7734-
TDS - B     Cr 2000-
TDS - S       Cr 200-
TDS - C        Cr 66-
hope its useful ........assign points if found useful
Regards
R.Ramakrishnaraj

Posting Vendor Downpayment requests with input tax

Hi Gurus,
I am trying to configure the down payment request for Vendor Payments, I want these down payment request to be posted so I un flagged the Noted Items check box and flagged the check box Commitments warnings check box and also I entered the Account determination key for Input tax clearing. Alternative GL account is defined to allow the Input Tax.
Now the problem is, when I try to post the Down payment request document with input tax I get an error message stating that "Down pmnts with taxes are not permitted when processing with jur.code". Actually the input tax is being assigned automatically even if I dont use a tax code.
So, can any one help me to understand what am I missing in my configuration or is it some thing which cannot be processed using F-47.
Oh by the way I am using the Special GL indication F (down payment request).
Thanks
Shilpa

Nicole,
Which country is this requirement for? As far as I know, there is no tax incidence on downpayment. Input tax arises only when you receive the invoice, right? Not when you receive a downpayment.

Down Payment with Calculated Taxes - VAT

Dear Friends,
We have an issue with the creation of the Downpayment using the T Code F-29. When the users are creating the Downpayment they need to account for VAT, let's say on receiving the Downpayment of 20,000 they also need to account for VAT @ 7%, thus making the total receipt to 21400. How can we account for the tax while recording the Downpayment? We notice that there is a box that can be checked for "Calculate Taxes" but how to eneter the percentage?
Your help would be highly appreciated.
Regards

Hi, Raj
I'm not sure I completely understand your issue, but you can define tax percentage through FTXP. I hope this at least points you into the right direction.
M Trein

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.

Tax code mandatory in vendor down payments

Hello,
I am posting a vendor down payment with a bank account not relevant for taxes, but when I enter the amount of the down payment in item 2, posting key 29A, the tax code is mandatory
How could I change it?
Thanks a lot

Check two options
1. Goto to FBKP-> Special GL -> Clear the tax column in the special GL for downpayment screen.
2. Check out the field status group of the reconcilation account. FS00-> 3 rd tab -> Double click on the FSG and check if the tax items.
3. Check out the Field status Group of the Account group in which the vendor is assigned.

Vendor Down payments: VAT

Good Day,
When I post a vendor down payment with T-Code F-47. I post an amount and tick the calculate tax box but when I simulate the transaction no VAT(tax) was calculated.
What should I change in customising so that I can calculate tax on my document amount.
Regards
Ropetra

Good Day
All the basic tax config has completed.
I have checked whether the customising has been mantained on the posting keys document type and the field status but no luck.
Please advise which cofig settings need to be applied so that i can calculate tax when posting a down payment.
Thanks
Ropetra

Vendor down payment

Hi,
is it possible to pay vendor down payment with F-58 (not F-48) after dowing a request by F-47 ?
what is the consequences of that, and what is the procedure that i must follow ?
i hope your help
regards

<b>I will explain with one example:</b>
1 You have made a down payment of USD 10000 through F-48.
2 You have received first invoice for USD 3000. First u have to match (clear) against your down payment using F-54. The balance will become now USD 7000.
3 You are again posting another invoice for USD 5000.
4 Carry out the step in 2 and the balance will be now USD 2000.
5 Now you are posting another invoice for USD 5000.
6 After clearing thorugh F-54 u will have a balance amount payable to the vendor will USD 3000.
7 Now you can pay this amount either theorugh automatic payment program or thorugh F-58 to pay this amount. Hope this is clear to you now.

Post down payment with different currency from request with F-48

Hi all,
I have a problem when I try to post a vendor down payment with the transaction F-48. The down payment request currency is EUR but I want to do the payment with USD. If I put in the field Currency/Rate USD the transaction F-48 show the message u201CNo suitable down payment request existu201D, but if I put the currency EUR the down payment request appears but I just can post it with EUR.
Is it possible to select the down payment request in EUR and post it with USD using the F-48 transaction?
Best regards,
Miguel

Hello,
I have the same challange like Miguel in the original thread:
"Is it possible to select the down payment request in EUR and post it with USD using the F-48 transaction?"
Please let me know how to manage this case in SAP.
Kind regards
Zarko

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

Help with F-48 Vendor Down payment for Italy please

Hello,
I have a problem with the F-48 Vendor down payment process. I'm working with an Italian company, and they state that with a Pro-forma invoice, they post the down payment. The Vendor has Withholding tax, and when I use a Vendor that is setup for Withholding in the Vendor master, the Withholding tax is not being applied to the Down payment. They state that they need it to apply to the down payment.
Also, they claim that the VAT tax is not posted at the time of the down payment, but is used to help calculate the Withholding tax. When I create a F-48 down payment and use the 'Calculate Tax' box, the VAT that is calculated is actually posted at the time of the Down payment posting. They claim that it should not post until the Invoice is cleared.
Any ideas?
thanks for your help!

Hello Deepa Khatri,
Thanks for your response. I know that the Vendor is setup correctly, because when I create and FB60 Invoice for his same vendor, the Withholding tax is properly applied. When I use the F-48 transaction, the Withholding is not brought in. Is there some Down Payment configuration that might help this Withholding to be applied?
thanks again for your help!

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

Vendor down payment clearing without VAT posting.

Hello SAP Gurus,
I have following issue:
Currently our Vendor down payments produce VAT postings when clearing with final invoice, which is correct.
But we have some old vendor down payments which does not include VAT and needs to be cleared without any impact to VAT postings.
User is using F-44 transaction and can not define any tax code for postings, system calculates it automatically.
It is not possible to make VAT posting happen and then make reversal postings fot VAT accounts as well.I tried to check flag 'Posting without tax allowed' and uncheck 'Post automatically only' in account master data. And then make manual posting using that account via FB01 but system still requires tax code to be entered because Tax category in account master data is set to '<' I'nput Tax Account'. It is impossible to change Tax category let's say to ' * ' because account have balances on it.
Could anyone advice how can I clear these downpayments without VAT posting?
Thank you,

I have tried to enter 0% input tax code, but still I'm not able to post document because of error msg:
Tax entry not possible in this item
Message no. FF724
Diagnosis
You can not enter a tax amount in this item since, due to the posting amount entered and the tax code, a total tax amount of zero has been calculated.
This could either be due to the fact that the tax code has been defined with a value of 0%, or because the posting amount entered (that is, the tax base) is too small.
Example:
With a tax rate of 15%, a tax amount greater than zero will only be achieved with a base amount greater than 0.04. With values of 0.03 and less, it is therefore not possible to enter a tax amount.
Procedure
Only enter tax amounts in conjunction with tax codes for which a percentage rate not equal to zero has been defined. Make sure that in documents with several G/L account items you enter the total tax amount in an item with a sufficiently high posting amount.

Down Payment with reference capital PO (Down Payment Entry)

Hi,
This is regarding Down Payment entry.
While making Down Payment with reference capital PO including taxes (f-48) we are getting the entry as below
Vendor A/c                                                   Debit
Asset   A/c                                                   Debit
Cenvat Clearing A/c                                      Debit
Cenvat Clearing A/c                                      Debit
Input Tax Clearing A/c                                  Debit
Bank A/c                                                      Credit
Down Payment Clearing A/c                        Credit
Input Tax A/c                                                Credit
But User is asking the entry should not be like, he wants the entry should be while making F-48
Vendor A/c                 Debit
Bank A/c                     Credit
We are using 4.7 version.
someone has told me that if we implement some patches then system will show the entry whichever user is asking.
Is it possible? Is there any solution for this?
Please help me on this.
Regards,
Schilukuri

Hi,
No, that is not requirement.
We will make the down payment with reference of Capital PO including taxes
then system will generate 7 to 8 line items. But user is asking system should show only 2 line items as i said above.
But someone has told me that if we apply some patches system will generate the entry as per user requirement.Since we are using 4.7 version.
any one can help me on this..
Regards,
Schilukuri

Vendor down payment with input tax

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