VAT Adjustment with Discount in Customer Payment

[sagar_kapadia]

Hello,

The system is adjusting VAT amount with discount in customer payment when posted using an electronic bank statement.

11120101	BA 1 Cust. transf.in	1.043,92
21710100	Cash disc.cl.to accr	7,48
58110000	Realized F/X loss	0,00
21644031	Output tax pay. (VAT	1,57
500039452	De Kweker BV	1.052,97-

As per customer, the entire amount should go to GL 21710100 and no VAT adjustments line item should be generated. In this case GL 21644031 should not be posted to. Kindly advise.

[sagar_kapadia · Accepted solution]

Hello All,

The issue has been resolved by making the Tax Category as Blank in Discount GL master data. Thanks all for your valuable inputs and help.

[former_member198650]

Hi Sagar,

Have you maintained tax code in the cash discount GL master data?

Regards,

Mukthar

[sagar_kapadia]

Hello Mukhtar,

Replying to your query on cash discount GL 21710100:

Tax Category is + (Only Output tax allowed)

Posting without Tax allowed indicator active.

Thanks,

[Former Member]

HI Sagar

21710100 you have maintain the tax code in this GL have you define the condition record  for tax FV11

if yes then system is calculating tax amount , so remove the tax code in GL

[former_member198650]

Hi Sagar,

Change the tax category as * and do posting.

Regards,

Mukthar

[sagar_kapadia]

Hello Mukhtar,

Thanks for the response. However, if I use '*' in Tax category, how will that prevent creation of below line item. Or leaving the field Tax category blank will serve the purpose and resolve the issue?

21644031

Output tax pay. (VAT

1,57

[thomas_vanaken2]

Hi Sagar,

In global parameters for your company code (OBY6), you have two indicators:

• Tax base in net value
• Discount base is net value

These indicators controls the way taxes and discounts are calculated. Depending of the country, you may have to activate none, one or both indicators.

Check if these settings are properly maintained for your company code.

Good luck

Th.

[sagar_kapadia]

Hello Thomas,

In OBY6, for country Netherlands:

• Tax base in net value = Indicator Not Active

• Discount base is net value = Indicator Active

Thanks..