Use Tax on Sales Document

[Former Member]

One of the company sends the equipment out to a customer on a trial basis . As per US tax rule this transaction is applicable for use tax.

We are planning to handle this as

We are handling this through consignment fill up follwed by delivery and no charge invoice

The Govt. considered this transaction as taxable and therefore Company pays the tax on the cost of the material. The tax which company has to pay is USE TAX on Sales. As per government USE TAX is input tax ( like purchase ) and hence tax rates are different in some state than sales tax.

We currently handling this through manual workaround but seeing volume this has become labories activity and looking for some long term solution.

One way is to use input tax code in UTXJ condition record which make call to vertex with input tax and pull correct tax rate but issue here is : Does SAP support to use input tax on SD documents?

If no , then is there any other way out to handle this type of use tax scenario.

Thanks,

Sandip

[Former Member]

Hai,

In SD we cannot use the input tax, but if you are able to write a routine to reverse the entries posted in FI to Input tax, this problem may get solved.

Means, As soon as the FI posting happens or billing is saved, the routine must reverse the entry of out put tax gl to Inputtax GL account.

Try this - its is only a suggestion.

regards,

Sudhir