Tax determination in B3 type Billing - Not Required

[Former Member]

Hi,

I have created a partial rebate settelement and got a credit note B1 document type - Order related billing

I have invoiced it B3 document type and getting the tax for rebate settelement.

How to avoid getting tax in rebate settelement billing only?

Venkat.

[Lakshmipathi]

Tax is not related to document type but related to customer.  So if you dont want tax, set the customer master to nil tax.  Else, if this is an one time exercise, then you can change the tax classification manually in billing document.

G. Lakshmipathi

[Former Member]

I think I have failed in explaining properly, apologies.

1. this customer is fully relavent for tax when he is participating in Normal sales order creation

2. this same customer is also relavent for receing rebates as rebates is ticked for him in sales area data at billing tab

3..the material is relavent for tax

4. when creating the normal sales orders with the existing pricing procedure rebate is accrued

5. Taxes payed for all those sales orders respectively

5. Now the time has come to process the partial rebates to this customer, and processed

6. B1 document type was created as a result of VB02 processing and as it is order related billing, we invoiced it resulted B3 billing type.

7. NOW when you check the header of B1 it is showing the same pricing procedure is accessed

8. Invoice is generated with taxes as customer and material both are relavent for taxes.

Now my question is taxes for all the orders payed, and rebate accruals is customers right, and why should he pay twice ? therefore now in B3 tax should not determine.

I hope this would help

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[jpfriends079]

First of all lets have common understand, B1/B3 are Credit Memo relevant doc, where you are going to pay the accrued amount to the customer.

Now, best way to have this handle is to have different pricing determination those doc(B1/B3).

Thanks, JP

[Former Member]

The tax is determined based on tax classification for the customer and material.

in Rebates, the settlement material what I have proposed and the customer both have tax relavency.

in that case if I select a non stock material, with tax classification 0, will not determine the tax in B3.

will revert back after the testing.

Venkat

[Former Member]

Hi,

I have successfully tested :

I have created a new material in Qality - NLAG type ( Non-Stock type)

Created new agreement with settlement material NLAG type

Created Sales Order -->delivery-->invoiced-->Rebate partial settlement-->invoiced-->

with Tax how it was first

Now I like to Clarify here:

If I change the customers tax classification, it would effect other orders where tax is required, so did not change customer tax.

Changing Pricing procedure is not right I suppose.

Thanks,

Venkat