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FOC Process with Tax Invoice

Dear Experts

I would like to get some guidelines from you on the FOC process with Tax Invoice.

The requirement is - Business wants to maintain the Price and then the Tax to be calculated on the Price/Net value.  After shipment, the Invoice has to be generated to show the Tax on the FOC Invoice.

Here, the requirement is NOT to charge anything from customer.  The Tax amount should go to the Tax payable account (similar to the normal sales process), but, the revenue should not go to revenue and customer should not be debited.

I tried making the Price as statistics and while generating Invoice, its throw an error that the No Taxable item found in the Invoice.  Without generating Invoice, the tax can't be posted to GL.

So, how to handle this scenario in SAP SD side and Finance side.

I have gone thru some of the discussions, but, I don't find clear details to handle this requirement.

Regards,

Mani

Former Member
replied

Hi,

Please find details for FOC.

Pricing Procedure:

Billing Document type :VOFA:

New Cancellation Document as S4 created by copying the S1 Document type and assigned the document type as S4 with the document type as "ZV" to have different Accounting document number during cancellation.

Account Key assigned for Cash Allocation as below:

The required Cash Key with G/L account maintained in VKOA as below:

Financial Accounting Document Setting in OBA7 :

In Invoice the Pricing is as below:

Accounting entries are as below:

Revert for any clarification.

Regards,

SRK

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