Customer Order Advance Invoice and Tax Ledger Reporting
What is the best practice to how a customer should control when the Tax is reported when using the core Customer Order Advance Invoice process ?
The scenario for the customer is that a CO Advance Invoice to 100% Advance in Tax is created in June, it is paid in July and the Order is delivered and invoiced in August. The IP4 transaction is the transaction that is required to report to Tax Office.
IP23 requires a tax account, so does PP38 and subsequently these are then subject to Tax Reporting whilst IP25 does not reach Tax Ledger Transactions even though posted to a Tax Account and PP40 does not become part of this as the flag Is Part of Tax Ledger is empty.
Is there a way to capture the actual VAT for goods delivered of the whole process i.e. only the IP4 (in this scenario) ?
Up to IFSApps9 these IP23/IP25/PP38/PP40 - as I recall it but have been wrong before - could be posted to Non Tax Accounts/Stat Accts.
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Greetings all, 22 views so I supply my findings … for everyone's’ benefit.
For the market in question of the above query to the community, there is no Tax requirement. The Customer Order Advance is just the means to collect Cash inc. VAT/GST i.e. the Gross Amount.
There is now a flag on Company / APPS10: Distribution → Order / IFS Cloud Supply Chain Information → Sales
The flag for Apply Tax depends how Tax Control is setup
With the above, it is then possible to meet the requirement to Apply Tax with a No Tax tax type. So that the whole req of the original question of having the IP23/IP25/PP38/PP40 aligned over multiple periods becomes a “non issue” as no tax reaches Tax Ledger.
Stay safe!
And IF the requirement for the local market is to post a tax transaction for the Customer Advance and thereby be a part of Tax Ledger/Tax Reporting, PP38 is the Posting Type that IFS validates is connected to a Tax Account. This means that IP23/IP25 and PP40 can be connected to a Non Tax Account.
Tax Acct Validation PP38
The F1Doc Posting Control information states that IP23 must be a tax account but that seems not to be the case as for example the IFS STD company template configure IP23 to a non tax account from what I can tell (Acct 2679).
Just a humble Heads Up!
Stay safe everyone !
hello, IF the requirement for the local market is to post a tax transaction for the Customer Advance and thereby be a part of Tax Ledger/Tax Reporting, PP38 is the Posting Type that IFS validates is connected to a Tax Account.
This might again depend on local tax rules - I never faced such case, but it is possible that tax indicated on the advance invoice is payble to the government at invoice issue. In such situation it is IP23 to be reported and should be directed to tax account ( and subsequent transactions at payment IP23/PP38 should go to the same account, but have null impact as they are +/- ).
