regarding invocing

[Former Member]

Hi Experts,

I have to include Municipal Tax (with respect to cost of the house) in the utility(electricity) bill, anyone can please tell me how to handle it or its not feasible.

thnaks and regards

Arpan.

[Former Member]

Hello,

You have to

1. Configure Tax code using FTXP

2. Define GL Account using OB40. Choose your procedure here...like MWS, MW5 etc... attach the GL Accounts to your Tax codes....here in this config step.

3.Map the FI-GL Tax codes to FICA in IMG\FICA\Basic Functions\Postings and Documents\Document\Define Sales /Purchase Tax determination.

4. Define MT/ST<Main-Subtransactions> in table TE305 - Use SM30 to configure values in this table.

5. Configure values in EK01

6. Configure values in EK02. Here you map GL Account, CO Object and Tax code to MT/ST...Based on this combination your tax amount is determined based tax code you attach here...but do remember that your Billing/Invoicing program should determine which MT/ST it has to use.....you need to code this

Hope this helps

Rgds

Rajendra

Edited by: rajendra mukhyaprana on May 6, 2008 8:24 AM

[Former Member]

thanks rajendra,

can we handle it through SD module and then integrate it in invoicing,

if its possible ,which method you suggest.

regds

Arpan

[Former Member]

Ooops!!

It is not a simple question to answer...it depends on many factors to determine which module you want to use SD or ISU-Billing?

few of the questions:

1. Where do you maintain the customer data? FI or ISU?

If it is in ISU, you have to use ISU-B & FICA....

2.How do you want to view the Customer reports? Is it in FICA or FI-AR?

3.Another factor to be considered is FICA is a sub-ledger and only transfers items to FI-GL at consolidated recon key level.

4. You cannot trigger Move-In, Move-out, Welcome letter, MRU etc in FI right? but only in ISU?

5.There would be legal requirement like tax reports, CCL , VAT etc specific to IS....do not think that this is possible in FIGL or SD ...right?

6.Do remember that there are steps of config you need to carry for Integration of SD and FICA in IMG\FICA\Integration\Sales & Distribution... to transfer SD data to FICA....

Lastly you need to consider various factors before deciding to go either for IS-U or SD.

My vote goes to IS-U if you are in Utilities business!!!.

Hope this helps

Rgds

Rajendra

[Former Member]

OK rajendra,

a great answer...

I am also going for ISU.

can you please give me some idea about the code i have to write in case of MT/ST.

one more thing i have to include that there is a formula to calculate the Tax based on the cost of house , so where we have to configure it (in ISU).

thanks and regards

arpan.

Edited by: arpan saini on May 6, 2008 9:28 AM

[Former Member]

hmm....I have not seen any simple questions from you Arpan

I'm not an expert in Billing...however you can try EA32/EA31

What is the business requirement for your Tax calculation?

We can define flat rates only in FTXP...if you are looking @ slab rates...may be we have to identify a tax FM for coding

Hope this helps

Rgds

Rajendra

[Former Member]

Hi rajendra,

Exact business requirement is to calculate the Municipal Tax based on the cost of the House and there a formula which is used for this purpose , so i have to include this Tax also in Invoicing (electricity bill). Please tell me the steps to handle it,

thanks and regards

Arpan.

[Former Member]

ok....

how you calculate the tax?

do you have categories like say

1. 0-100 sq ft = 5%

2.101-500 sq ft =10%

3.501-1000 sq ft = 15%

4.>1000 sqft = 20%

in this case I'd suggest to configure all the above categories as separate tax codes say A1, A2,A3,A4.....

you can attach the above %s' to the individual tax codes...and also the description as above...

Rest of the procedure is as mentioned in my first posting...

Hope this helps

Rgds

Rajendra

[Former Member]

Rajendra , the Tax is not fixed , its based on the cost of the house. calculated by a predefined formula.

regards

Arpan

[Former Member]

Plz elaborate your requirement.....

you mean to say per sq feet this much???? Business might have given you the requirement...right? so Plz elaborate in business language....

Rgds

Rajendra

[Former Member]

ok Rajendra, i will explain by a taking an example, say the cost of the house is 20 Lakh then by using a predefined formula they calculate the Municipal Tax say 1000, actually its not based on the per sq feet.

Please , If you have some doubt , I will explain again.

thanks and regards

Arpan.

[Former Member]

Arpan,

Three Qs'

1. How you arrived cost of the house as 20 lakhs??..can this be assumed as master data or again you have a process to arrive the value?

2.What is the present formula you use to determine the tax as 1000 or what ever?

3. Are you using CIN version?

Rgds

Rajendra

[Former Member]

Rajendra, its(cost of the house) saved as master data and for formula I have to talk to some other person and will tell you upto tomorrow.

thanks for your kind help..

regards

Arpan.

[Former Member · Accepted solution]

Hi, arpan

If your goal is to invoice Municipal Tax (is it a tax on property?), then you should use either Billing/Invoicing in ISU or SD.

If you use SD, you can integrate SD orders in electricity invoices, but you will have to find a way (development?) to automate the process of generating the SD orders. I don't know if you can do it by standard in SD, but I know there is integration between SD and ISU Invoicing.

If you will use Billing/Invoicing in ISU for this, try to talk to a Billing consultant. From my not so good Billing knowledge, you could use the same installation and include this tax in the calculation of energy consumption, or you could use a different installation and a special calculation for this tax.

You have to take into account the case in which there is no energy consumption, meaning either you still generate an invoice with this municipal tax or you wait until the next energy invoice is generated. Also, what if the customer is disconnected?

Hope this helps. If you have any questions, I'd be happy to try and answer them.

Bogdan

[Former Member]

Hi Bogdan,

Yes, its tax on property and I will use Billing/Invoicing for this.

In the case of no energy consumption, then also we have to genrates the invoice and also with the municipla tax.

thanks and ragards

Arpan.

[Former Member]

Hi arpan,

First, a question: is the tax a monthly or yearly one?

You have 3 solutions:

1. Separate installation for each property. Separate contract for each installation. Each installation will have in installation facts information about the property, which will allow invoicing of that tax, using tariff allocated to the installation. I think it would be the easiest to implement, since you will be able to follow each property separately.

2. One installation with all properties for that owner. I think it would be trickier to make tariffs and to invoice, and also to follow property movement and update facts.

3. If all properties are connected individually to electricity (you may have problems with land not connected, for example), you may include this as a part of a special energy tariff. This would be even trickier to do, since you will have to follow closely the movements of properties and update the facts accordingly.

Hope this helps,

Bogdan