Credit Memo tax rate is incorrect due to the changed jurisdiction code

[former_member851182]

Due to the move, there was a change in tax rate. Let say the old location had sales tax 10% and a new location has a sales tax 8%. The problem is that credits that are based on the old invoices with 10% tax rate (i.e. created prior to the move) the system is applying a tax rate 8% that is applicable to the new location.

Credit Memo is always based on the invoice. I need to find a solution how to force system to use tax rate from the reference document. How would you handle this situation?

Additional info:

Country USA

System ECC6.0

Text Removed

Regards

Message was edited by: G Lakshmipathi

Please don't add such texts

[Former Member]

Hi Alex ,

Taxes are determined based on the Customer Jurisdiction Code. So i don't think even if the company code location changes, there is no impact (Hoping the change of location is within the same country).

Moreover technically we can achieve what you want. But it is better to check with the business people what exactly they need in such a situation. Whether they need the tax from the reference document or it should be redetermine in the CMR. Take the business approval before proceeding for any changes.

[former_member851182]

Is it possible to create a custom pricing type that would refer back to the original document and take the tax rate that was applied to that document? Is it a right approach? How would you do it?

[Lakshmipathi]

Assuming that you have new tax code for 8% with the same combination with current validity period in condition record, you can achieve this.

G. Lakshmipathi

[chandrasekharbadeti_chand]

Hi,

If any changes in the Address of Customer Master Data, then Please try to update the price condition at item level in Credit Memo. Now system will determine the latest tax based on pricing date. (Pricing date should be system date)

Best Regards,

Chandra

[former_member851182]

Sorry, I didn't make it clear  - Company moved to another US address, not customer.