Vendor Invoice input tax in sales

[Former Member]

Dear All,

We are implementing SAP in legal industry and we came across a scenario where we need to bill the Hard Cost, that we are treating as a material in SD side and we are determining this material in SD through Resource related billing.

We post the Vendor invoice (HArd Cost as disbursement in service and legal indusrty) through transaction FB60.

Requirement is like that we need to bill the expense which i am treating as a Hard cost(Material) in sales with input tax.

I know in SAP input and output taxes are handled seprately. But this is legal industry and we need to bill the HArd cost( posted vendor invoice through fb60) with Tax which i have paid to vendor. As i am not modifying this material so i am passing the total amount (expense plus tax portion which i have paid to the vendor) to the client to recover.

We are already billing this expense in billing as a Hard cost, but according to business requirement we need to bill the expense with portion of Input Tax which i have paid to the Vendor.

Any help on the above issue will really appreciate.

[Former Member]

Hello Anand Bakshi

This is an interesting question, I don't have ready answers but can throw some pointers at you.

1) Try Bill of Services, a complicated subject, but it integrates SD with MM by facilitating copy of MM pricing conditions to SD via costing sheet.

IMG Menu Path: SPRO/IMG/Sales and Distribution/Bill of Services

http://help.sap.com/erp2005_ehp_04/helpdata/EN/8d/7638b88f3f11d2b47f006094b93006/frameset.htm

2) Use SAP Industry Solution (IS) - SAP for Professional Services, I am sure it will have this scenario covered or if you can not use the IS for some reason, try following the concept.

Musically yours

Lakshmi- Pyare

( just kidding to end the week with a smile, don't take it seriously)

[Former Member]

Thanks dear for your insight and valuable comments on this:

We are already using professional services and his best practices. I will go through the link you have send to me & get back to you.

In the mean time if you or anybody got any clue on this will be a great help.

once again thanks

happy weekend

Anand Bakshi