Rebate settlements should not hit the VAT account

[Former Member]

Hello everyone,

There is a question on Rebate Settlement.

There is a customer who is entitled to a 15% BPR rebate.
 

We are accruing for this rebate successfully
 
The issue we are having is that the materials that this customer buy from us attract 20% VAT but when the customer claims back from us they do not claim the VAT component.
 

We need to  be able to do rebate settlements that do not hit the VAT account.
 
I ran a test in SAP on a sample rebate agreement but the only way I could get the rebate settlement to not hit a VAT account was to change a material to be not liable for tax and then settle against that material.
 

Billing doc 1-Posts to VAT since the material is Tax inclusive

Billing doc 2-Does not posts to VAT since the material is Tax exclusive

Any of you aware of any other way to do this (perhaps using a payment type)??

Kindly suggest,

Regards

Manjunath

[former_member131691 · Accepted solution]

Hi Manjunath

Yes the tax relevance for the settlement is taken from the settlement material. So the solution could be to set the material master of the settlement material with a tax exempt indicaor, as you have done

initially. Otherwise you could add your own requirement to the tax condition where it is excluded if the document type is a rebate settlement request or a rebate settlement billing document.

Kind regards

Brian

[Former Member · Accepted solution]

Hi Brian,

Thanks for replying.

Is there any other way of meeting the requirement??

[Former Member · Accepted solution]

Hi Manjunath,

As Brian already explained the way how usually rebate settlements happen with settlement or dummy material.

Is our business needs to have settlement against actual materials billed ?

If yes, we did an approach in our client.

we have a six document concept which is custom developed.

You have 2 documents created for rebate settlement run. Rebate credit memo request and rebate credit memo for settlement or dummy material maintained in rebate agreement.

These two documents gets cancelled with corresponding cancellation documents.

New set of documents created for Rebate credit memo request and rebate credit memo with actual materials.

All of these documents are created using a batchjob and these documents form document flow in our case.

You can try with help of an ABAPer for achieving this.

Thanks

Rama