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former_member183818
Contributor
As per the new VAT law in UAE any advance received from customer is subject to VAT, if Sales Order is not processed within 14 days of advance receipt.

Scenario:

We are supposed to receive an Advance Payment of AED 1050.00 (including VAT) from a customer against a total value of supply of goods of AED 3000.00

Accounting entry for the entire cycle:





























Description Debit Credit
Bank Account 1,050.00  
Customer Account 2,100.00  
VAT Output   150.00
Sales   3,000.00


 

Customer balance in FBL5N should be 2,100.00

Tax report should be base amount 3,000.00 and Tax amount 150.00.

Configuration Steps:

  • Configuration in Pricing Procedure

  • Sales Invoice Output Changes

  • New Advance Tax Invoice Form

  • Field Status for GL account group

  • Special GL account configuration


Configuration in Pricing Procedure

For capturing advance amount in Sales Invoice output and deducting the same from total sales value in Invoice output New statistical condition type to be created.



Update Pricing Procedure.



Sales Invoice Output Changes

Change the sales invoice output form to capture ZADV condition type and recalculate Total and Tax amount.



New Advance Tax Invoice Form

Tax invoice form to be created for document posted via F-29



Field Status for GL account group

OBC4 for activating sales order field in F-37 / F-29



Special GL account configuration

OBXR



Business Process Steps

Step1:

Create the sales Order (VA01)



Step 2:

Create Customer down payment request via F-37



In the Next screen you need to input the advance amount and provide the tax code which should be same as SO and it can be referred over there. In the Sales document field input the sales order #. Give other parameters as required.



Then Simulate and Save. It will post one noted item for the customer and will hit to one Alternate reconciliation account which is in this case 110050. This is nothing but your Sales Advance account for this customer.



Step 3:

Post Customer Advance payment in F-29



In the Next screen you need to input the advance amount and provide the tax code which should be same as SO and it can be referred over there. In the Sales document field input the sales order #. Give other parameters as required.



Custom output form to be created for generating Tax invoice from F-29



Step 4:

Complete customer billing against Sales Order. (VF01)



Custom output form to be created for generating Tax invoice



Step 5:

Now we need to execute T/code F-39 and clear customer down payment.



In the next screen you need to choose for which down payment/advance you want to make the transfer



So in this way we are moving sales advance amount to customer account.

 

FBL5N Report

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