Italy LCIT. Tax Exemption letter received after DownPayment posting

[Former Member]

Hi,

We use the LCIT pricing condition on SD documents when an Italian or French customer is tax exempt.

We have a problem that sometimes the letter of exemption is received midway through a billing plan. This means that Downpayments or Progress Billing documents with MWST have already been issued to the customer and have already been posted to accounting. Some of the money paid by the customer will have already been allocated to Tax.

Progress Billing documents issued after the letter of exemption will of course have no MWST.

What is the best way to deal with this situation?

At the moment we are asking the users to do manual FI adjustments. We ask them to make the customer payments tax exempt.

This is not a good solution. It is a complicated process and easy for the user to make a mistake. It also means there is also a lack of visibility.

I would be interested to know if anyone else has encountered this problem and how they have resolved it.

thanks

Oliver Schurmann

[Former Member · Accepted solution]

Hi Olivier,

This is a tricky situation.

As per my analysis ask FI tem to issue Credit /Debit memo process to nullify the entries for the same customer with reference to the invoice. So that entry will be updated but ask them to maintain clear description in Text. So that there will not be any problem in Audit point of view also.

I hope it will help u.

Regards,

SK