Correction invoices for rebate agreements in Poland

[former_member1027649]

I am currenty working in Poland on rebate agreements. There is a legal requirement that every change in the invoiced and VAT value has to be corrected via a correction invoice , mentioning the original invoice line, updated line and the delta. However the rebate settlement only generates a standard credit note to pay the rebate. The credit note that is generated

for the rebate contains the settlement material.

In Poland the correction invoice should have the original quantity ,real material number and invoice value. Does

anybody have experience in how to create a correction invoice instead of the standard credit note for the rebates ?

Many thanks in advance

Evert Nooijen

[Former Member]

Dear Evert Nooijen,

I have the same requirement, I would be interested to find out if you got a reply to this requirement somewhere else.

Thanks for your help.

Kind regards,

Helena

[Former Member]

Hello Helena/Evert

I just saw this and thought I should address it.

I think you are confusing between standard functionality and rebates.

I guess what the law says is that you should issue a Correction Invoice which is a Credit (G2) or Debit memo (L2) whenever VAT corrections need to be done. So you create a Req. For Invoice Correction ( RK or ZRK1) and then convert it into a Billing document.

Now rebate keeps accruing for all those Billing Documents for which you activated Rebate ( T Code OVB0). So if the original invoice created a positive contribution to the accrued amount, a correction Invoice will create a Positive or negative impact based on whether it is Debit or Credit Memo that results out of the correction. So what I mean is as long as you issue a Correction Invoice, you are done with legal requirement and its effect on Rebate you pay is taken care of by Rebate functionality.

At the end of the year, you issue a credit memo after you settle the agreement and that includes the effects of both original and correction invoices.

So my suggestion is not to mix up the issue and worry about it.

Hope this helps.

[Former Member]

Helena/Evert

Further if you want to really issue a correction to a credit memo ( Rebate or otherwise), then follow this OSS note meant for Poland and Hungary. But I think it is not specific to Rebates, but allows you to create a correction to credit memo which was not available before.

840723 - Invoice correction for Poland and Hungary

1108066 - Invoice corrections for Poland/Hungary: V1 498

Also check out OSS notes mentioned within as they may throw more light on our problem.

840724 - Law change: Invoice correction for Poland and Hungary

1072921 - Creation of Correction Request against Intercompany Billing

1007635 - PL: Handling Correction Invoices in DP process

To dig in more, search for OSS notes in the application area XX-CSC-PL.

Hope this helps.

[Former Member]

Hello all,

I'm working also on a solution to issue Partial and Final Rebate Settlements for Poland, therefore, where the Correction Invoice concept needs to be followed.

Does anyone already worked on this that can share your experience/recommendations?

Following Polish law it is possible to have a Corrective Colective Invoice. This would allow for example to have a single Corrective Invoice per customer and for a given period (this should substitute for example the Final Settlement)

Thanks for sharing....

'Fatima

[Former Member]

Dear Fatima,

Did you manage to finish your developpment for Poland on Collective Corrective Invoices? I am also working on the same requirement. Could you share a bit more on your solution?

Which document type have you based your collective corrective invoice for Poland.

Thank you for sharing.

Kind regards

Helena

[Former Member]

The invoice correction is a legal requirement in Poland - without any discussing.

Normal credit and debit notes are not allowed.

The described notes are the correct ones - very easy when you follow the description.

The RK will create a sales order - as the credit note request - but with one item for canceling the original item and one item with the new quantity, price,...

When you post the invoice it will book item 10 to un-do the original item and a second item with the new values.

Regards

Manuel

[Former Member]

Hello,

Thanks for your input.

However, my issue is not how to create an Invoice Correction, I am aware that credit notes are not allowed in Poland.

My issue is how to create an Invoice Correction from a Rebate Agreement. In Standard SAP to close and pay a Rebate Agreement we issue an Credit Note. In Poland, the requirement is to have a Rebate Agreement setup but instead of issuing a Credit note to pay and close the Rebate Agreement, an Invoice Correction needs to be issued.

That Invoice Correction should be based on the Sales Volume amount that is on the Rebate Agreement referencing all Original Invoices and Deductions (returns and price corrections).

The solution of Collective invoice correction mentionned by Fatima seems to be the only possible solution to relate the Sales Volume in the Rebate Agreement to Original Invoices and Deductions.

To put it in another way, the question would be: how do we manage and pay Rebates in Poland?

Thanks for sharing

Regards

Helena

[Former Member]

Thanks for your input.

However, my issue is not how to create an Invoice Correction, I am aware that credit notes are not allowed in Poland.

My issue is how to create an Invoice Correction from a Rebate Agreement. In Standard SAP to close and pay a Rebate Agreement we issue an Credit Note.

In Poland, the requirement is to have a Rebate Agreement setup but instead of issuing a Credit note to pay and close the Rebate Agreement, an Invoice Correction needs to be issued. That Invoice Correction should be based on the Sales Volume amount that is on the Rebate Agreement referencing all Original Invoices and Deductions (returns and price corrections).

The solution of Collective invoice correction mentioned by Fatima seems to be the only possible solution to relate the Sales Volume in the Rebate Agreement to Original Invoices and Deductions.

To put it in another way, the question would be: how do we manage and pay Rebates in Poland if credit notes cannot be issued?

Thanks for sharing

Regards

Helena

[former_member1027649]

Hello everybody,

The requirement to create correction invoices might look weird and very painful but I really think it is a legal requirement.

I have searched the internet and find contradictory information on whether the correction invoice is mandatory for rebate payments in Poland.

For example the SAP country specifics mention that a correction invoice is needed for rebates:

"You are required to create a correction tax invoice whenever you need to correct a tax invoice, for example:

· To grant a customer a discount or rebate or increase the price of goods or services

· To correct a tax invoice, for example, if it contains an error in any of the prices, tax rates, tax amounts, net values, gross values, quantities, or units of measure

· When a customer returns some goods to you"'

However I also found another document that gives me the impression that the Polish regulations on correction invoices have been changed in November 2009 (Polish jurisdiction)

See the text below that is part of the changes in Poland:

" The WSA in Wrocław ruled on 12 November 2009 (case ref. I SA/Wr 1155/09) that a rebate causing a reduction

of the tax base for VAT may be documented not only by invoice but also by other documents.

The taxpayer received rebates directly from his suppliers and by proxy of a company which negotiated terms of delivery in his

name. The rebates received directly from suppliers were backed by correction invoices. Those received from the

intermediary were documented by credit notes. The tax authorities took the view that rebates could only be documented by

correction invoices. However, the WSA ruled that a rebate could be documented otherwise, for example, by credit note. Such

a document must be supplemented with additional information which shows who gave whom the rebate and in what amount."

HOWEVER: I am told by the local Polish organisation that this decision from the court in Wrocław, and not necessarily valid in other areas like Warsaw.

Then I had contacted Price Waterhouse in Poland and have asked them for an advice: I have received the following answer from PWC:

""Pursuant to the Polish VAT regulations post-transaction rebates should be documented with the correction invoices referring to the original invoice. Therefore, we recommend that the system is appropriately adjusted to include the discussed functionality. Please note this is a standard in Poland that SAP allows for creation of such correction invoices."'

So as mentioned, I think we have to enable the correction invoices for Poland, however I don't think we cannot create those in correctoin invoice requests (e.g. document type RK) in standard SAP by the rebate settlement program. We cen build a program to do it automatically, but I was hoping for a standard SAP program that was linked to the rabete functions in SD (automatically as part of the rebate settlement.).

Hopefully somebody has any recommendation.

Regards,

Evert Nooijen

Edited by: Evert Nooijen on Apr 4, 2010 12:01 PM

Edited by: Evert Nooijen on Apr 4, 2010 12:03 PM

[sidi_reghioui]

Hi Evert

The requirement in Poland seems very confusing -for me.

I can understand that the authorities would like to get rid of credit notes and replace them by sort of invoice correction documents.

This way they have the original invoice amount, the credit amount and even the delta.

Sounds all good and logical, and technical possible.

Now, the rebate settlement is not a simple credit note the company issues to the customer as a correction of a faulty invoice, but subsequently to an agreement over a period of time for a lot of invoices.

The rebate agreement gets updated with regard to sales volume and rebate/accruals amount. This is stuff you all know.

I cannot see the relationship between the rebate agreement settlement and the invoice correction.

I would really get the business have fiscal expert in Poland, like PriceWaterhouseCoopers or alike, to give you really their input on what the new legal requirement is especially with regrd to rebates. Not fr simple invoices, tht's something already clear.

Please post back any comments so you'll get input from others and may be off help for others.

regards

Sidi

[Former Member]

Hi Evert,

There is the std. procedure in SAP for your requirement, You can create order RK Invoice correct. req with the refrence of your billing document.

So when you start creating the RK order type in VA01 --> system will ask you the refrence billing document --> Give your billing document number --> In order overview screen --> system will show you two line one was having the same quantity and same price --> you cant modified that 1st line --> the second line will open and you can do the correction in quantity or price.

In billing document also, it will show you the two lines. One was from refrenced document and another for correction.

Hope it helps,

Regards,

MT

[sidi_reghioui]

Hi

Do you mean that you will not use the credit note to settle the rebate amount and that instead you have to issue a correction invoice for that, because actually the initially invoice needs to corrected?

regards

Sidi