You have created several sales order and associted invoice schedules for a long period ahead. Nevertheless, you wonder how would the system behave in calculating the invoice taxes in the event of a tax rate change in the future.
Reproducing the Issue
- Go to Sales Order work center.
- Go to Sales Order view.
- Open the concerned sales order.
- Jump to Pricing and Invoicing tab.
- Click on Invoice Schedules sub-tab.
For this sales order, you have created several invoice schedules for example:
For this sales order, in the Items tab, you see that the system uses a given tax code, tax rate type and tax rate. Nevertheless, you become aware that as of 17.04.2021 the tax authority increase the given tax rate and you want to understand what is the impact in the invoices created via invoice schedule.
The system will use the tax rate whose Valid From date covers the tax date in the invoice. Generally, this means that if the rate change effective 17.04.2021 is put in the system before 17.04.2021, the invoices created after 17.04.2021 (tax date after 17.04.2021) will have the new tax rate. In this same case, the invoices created before 17.04.2021 will have the previous tax rate.
Note that if the rate change effective 17.04.2021 is put in the system after 17.04.2021 (but with Valid From = 17.04.2021) the system will only be able to derive the new rate for the invoices created after the date you have included the new tax rate in the system. For the invoices that you have created between this gap (Valid From and inclusion date in the system), the previous tax rate is derived, since the system would not be aware of any other tax rate. In case you want these invoices to reflect the new rate, you need to re-create the documents.
In order to maintain the tax rates, please refer to below steps:
- Go to Business Configuration work center.
- Go to Implementation Topics view.
- Open the activity list.
- Search and open for fine-tune activity Tax on Goods and Services <country> (depending upon the country definition, you need to further click on Define Tax Rate Schedules inside this activity).
- Check/Maintain the tax rate accordingly.
Please, note that in case of a new tax rate, always add a new row. Do not overwrite the existing percentages.
KBA , AP-SLO , Sales Order Processing , How To