Crediting tax amounts in SD

[Former Member]

Hello friends,

We have inadvertently landed up charging many customers taxes due to incorrect tax indicators when they were actually tax exempt. Is there any process on the SD sice whereby which we can create credit memo requests only for these tax amounts (with reference to the original orders or invoices) w/o charging anything else? Or is manual JEs in Finance the only option?

Our business folks prefer it comes from SD as there is the customer AR also that needs to be reduced by these amounts.

Appreciate any pointers?

Many thanks!

[Jelena · Accepted solution]

Can you just do an invoice cancellation? If it's still within the same period (many companies do not allow cancellations for the past periods) it'd probably be the cleanest solution as it will allow to reverse the charges completely and create a new invoice.

"Invoice correction request" is a special document type (RK), if you google Invoice Correction Request site:sap.com there is official documentation available.

[Former Member · Accepted solution]

Some we can of this month when we discovered it, most documents are from 2015...I tried the invoice correction in the sandbox, works great though we are missing the configs/copy controls etc, will see if I can make this work, should be a long lasting solution!

Thanks everyone.

[VeselinaPeykova]

If you use the same condition types in the new procedure, won't this affect CO-PA?

[Lakshmipathi]

Have a new pricing procedure for Credit Memo with the same pricing condition type as that of in parent billing document, but with statistical box checked for that.  By doing so, there won't be any financial impact on customer side and there would be a contra entry on tax part.

G. Lakshmipathi

[Former Member]

Thanks Lakshmipathi,

Good way of tackling it permanently! This may be a one time thing for us though, people are more cautious about master data now Is there any other way you could think of? This one would require lots of configs apart from new credit order types as the existing ones have the regular PPs.

[Lakshmipathi]

The other option from SD comes to my mind is only Invoice Correct Request.  Explore this option and search SCN if you are not fully aware of this functionality.

G. Lakshmipathi

[Shiva_Ram]

Similar topic was discussed here Credit memo for Tax Amount | SCN

Regards,

[Former Member]

Shiva/Lakshmipathi,

Thanks for the link! I looked at it but not able to understand how to create 2 lines on ONE credit memo request - one for a credit and the other for a debit? A CMR is going to lead to a CM for both the line isn't it? The author has not said which doc type to use for this purpose. Is he saying to put negative values on the 2nd line? A great process though, thanks a lot! I didn't know about it.

@ Vaselina, I was thinking the same thing about CO-PA myself, does it remain unaffected? Luckily in our case no inventory is involved and it it a service item for which we don't even do any costing.

[VeselinaPeykova]

With the CR/DR combination you will have generate 2 documents, which would update the corresponding value fields in CO-PA. Since you use the same pricing procedure and have the same pricing conditions applied as the original billing, the same fields are updated  - the credit memo request items offset the values from the original document and the debit memo items update them again.

With RK you achieve the same as with CR/DR - so the net result for your specific case for invoiced quantity, revenue, discounts etc. would be zero - you wanted to update only the tax amounts.

If you use only one a single G2N item for 2 EA and have for example PR00 applied with 10 EUR, VPRS - 5 EUR, in CO-PA you will have an update with invoiced quantity -2; revenue -10, cost of goods -5.

Statistical conditions can also update profitability - VPRS is a very good example.

This update of depends on the settings in KE4I, where you map pricing conditions to the value fields in a specific operating concern.

I would suggest that you speak with your colleague responsible for Controlling. He would be able to explain better than me what sort of reports his users run during month-end and he can show you the specific settings for your company.