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Service PO's with tax and Non servie pos without tax

Former Member
0 Kudos

Hi,

In my present process.For service (ME21N)PO'S withholdingtax is calculated and for non service PO's there is no withholdingtax calculated.

In standard sap PO's.Tax will be calculated for both service POS and non service PO's.

Can any guide me where the coding is done by which the system is calculating tax on service pos and no tax calculated on material pos.

It will be great help.if you can through some light.

Thanks

Hagi

Accepted Solutions (1)

Accepted Solutions (1)

Ramki
Active Contributor
0 Kudos

Hi

We normally maintain withholding tax codes for service vendors (XK01/XK02) and do not maintain for material vendors.

Best regards

Ramki

Former Member
0 Kudos

Hi,

How i can differ whether the vendor is related to service or material.

Please guide any other alternate solution.

Thanks in advance.

Micheal.

dipak_kumar3
Active Contributor
0 Kudos

Hi ,

Normally withholding taxes are maintain in vendor master records. Is n't it ?

And rest of the process for material procurement and service procurement remains the same . Same tcode is used for both except item category - D . This is used for service based PO .

Check that and revert for any clarification if any .

Thanks

Dipak

Former Member
0 Kudos

Hi,

With respect to WHT, vendors can be classified into three categories

1) Service Vendors (subject to WHT)

2) Material Vendors (not subject to WHT)

3) Mixed vendors (WHT is applicable on services only)

Identifying the type of vendor needs the data from business only. There is no specific indication in SAP. In case of 1 & 2 type vendors there is no problem. Problem with type 3 vendors. Since WHT keys are updated at vendor level, during IV system withhelds the tax amount on entire invoice which is wrong since materials may also be there in that invoice. For this there is no standard solution by SAP.

We need to further identify vendors based on supplies with both services and materials. If the % of services & materials combination is more, it is better to create two seperate vendors for the same vendor, one as service vendor and another as material vendor and ask the vendor to give seperate invoices for services and materials. If it is very less %, while posting invoices just change the base amount against the WHT keys. This is the practice we implemented for our client.

regards,

mallik

dipak_kumar3
Active Contributor
0 Kudos

Hi ,

And if you still not satified with that , create a different number range based on vendor account group each for material supplier vendor and for service vendor .

This will give a visual differentiation between 2 types of vendor .

Thanks

Dipak

Former Member
0 Kudos

Hi,

Thanks for the info.

My client is having the vendor is valid for both service and material PO'S.It is difficult to fit with my clients requirement.

Please can you guide me whether any other setting rather than GR Flag,Item category and material entry which can say it as a material po or service po.

The user should activate GR flag for material po and any other setting or activation which can say it as a material PO.

If it is not activated it as a service PO.

Thanks in advance

Micheal

dipak_kumar3
Active Contributor
0 Kudos

Hi Micheal ,

If that does help you , then I think different number range for document type can help you .

Create a different number each for sservice PO and material purchase PO .

Let us know this also doesn't help you .

Thanks

Dipak

Answers (0)