Non-Deductible VAT Code and Freight in Purchase Invoice

[FedericoS]

Good morning everyone,

When recording a purchase invoice using a non-deductible tax code and adding freight in the foot of the document, in the resulting accounting entry the non-deductible part is not added to the cost of the freight but to the cost of the invoice line item (either using item codes or the service type document).

Thanks in advance for your help,

Federico

[Felipe_Lima]

Hi @FedericoS ,

Include the freight at line level instead and supply the freight amount and the non-deductible tax code for it.

I hope it helps.

KR,
Felipe

[FedericoS]

Hi @Felipe_Lima,

Thanks for your reply.

This is a good workaround and I have suggested it to the client, so the correct allocation of the VAT quota is made.
However, the possibility of using freight with this type of tax code should be available and should be corrected, at which point it may be a case of opening an incident at SAP.

Kind regards,

Federico

[Felipe_Lima]

Hi @FedericoS ,

Follow the below and check the behavior at your end.

In some countries you could even create an Item called "freight" and use the G/L determination to produce a similar accounting output. You would have to check whether this is compliant to the local laws and the customer's processes, of course.

The bottom line is that you should always consider localization-specifics in regards to VAT and Freight treatment. The database I'm using is UK based, so it may be different from the Italian one I suppose you are using.

KR,
Felipe

[Felipe_Lima]

Hi @FedericoS ,

Actually, that is not a workaround, it's just a different way to work with freight in documents.

You could do the same by using the header (footer) allocation, but I personally go with the line method when the scenario is specific like yours, and/or the freight distribution method available does not meet my needs (or sometimes not even set up).

You may have a look at the documentation Freight - Setup Window | SAP Help Portal

KR,
Felipe

[FedericoS]

Hi @Felipe_Lima,

I tested your solution, using the freight in the lines of the purchase invoice.
However, I find the same type of comportment in the accounting entry.

How can I use this type of freight with this VAT Code?

Thanks a lot for your help,

Federico