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VAT to be calculated at last/final line item.

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Hi,


I need guidance on one of scenario.

Scenario :-

As per mutual understanding or agreement with customer for one sale pay terms are partial payments in duration of 2 to 3 months, means for one sale order with 2 or 3 invoices.

They Create Service material Sales Order ( Order related billing.)


Example:- For one sales order if Sale value is 200 they create 2 line item of 100 each and periodically they raise invoices.

Requirement:-

As and when they raise invoice for 1 st line item only service tax should consider and not vat.(Including accounting entries.)

Say if invoice value is 100 + 14.5 (S. Tax)+ 5 (Vat) = 119.5 Instead it should be charge only 100+14.5 (S. Tax)= 114.5

Vat should be accumulate and charge in 2nd  and final invoice that is 100 + 14.5 (S. Tax) + 10 (Vat) = 124.5

As no manual conditions require so how we can map this SD pricing.

Kind request share your valuable respond on this.


Regards,

Sujit


Accepted Solutions (0)

Answers (2)

Answers (2)

Lakshmipathi
Active Contributor
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Are you sure, your client are charging Service Tax plus VAT.  Normally for service related billing, VAT will not come into picture since you are not physically delivering any material.

G. Lakshmipathi

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Hi,

Yes they do charge S.Tax as well as VAT.

Regards,

Sujit Mali

Lakshmipathi
Active Contributor
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Either the business process itself is wrong or you have not explained clearly.  As I already said, in service related billing, no material would be delivered physically.  As per your indication, if physical material is also being delivered, then you need to explain where from it is being delivered.  Nevertheless, you have to add this logic in a zee routine from VOFM to achieve the desired result.  With standard configuration, it is not possible

G. Lakshmipathi

siva_vasireddy2
Active Contributor
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Hi,

VAT will be calculated based on Customer tax classification indicator and material tax classification indicator.

if you maintain the VAT records based on this for the second material only VAT will be picked

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Hi Shiva,

Thanks for your Input,

Tax is getting calculated and require master maintenance is already in space.

Concern :-  taxes are calculated in first invoice  but it shouldn't  calculate only VAT and amend in first invoice , but how to accumulate only VAT of first and second line item in second invoice only.

regards,