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SAP Knowledge Base Article - PublicSymptom
Due to the new legal change introduced in Japan, existing/older POs, contracts and ERS invoices must be migrated with new tax rate and tax type as per the new tax code set up mentioned in the Product documentation.
Resolution
This document helps buyers to handle existing/older POs, contracts and ERS invoices to follow the Japan Tax Consumption legal change.
The tables below describe a sample tax type and tax rates before and after the legal change.
[Before legal change]
| Tax Type | Tax Rate | Tax Code |
| SalesTax | 10% | SX |
| SalesTax | 8% | V1 |
[After Legal change]
|
Tax Type | Tax Rate | Tax Code | |
| SalesTax | 10% | SX | Old |
| SalesTax |
8% | V1 | Old |
| SalesTax_10 | 10% | V6 | New |
| SalesTax_8 |
8% | V2 | New |
Note - Keep the older tax types and tax codes and then create the new tax types and new tax codes. Then setup the tax code lookup as mentioned in the Product documentation.
Migration approaches for older/existing documents (PO, Contracts, etc):
Option 1 - Cancel existing PO/Contract and re-issue with the new tax types and new tax codes. Then setup the tax code lookup as mentioned in the Product documentation.
Option 2 - Modify the existing PO/Contract and re-issue with the new tax types and new tax codes. Then setup the tax code lookup as mentioned in the Product documentation.
Option 3 - If above options are not suitable, then follow the steps below if any issue persists for the respective flows.
| Flow | Buyer Pre-requisite | Invoice Creation | Reconciliation |
|
PO Flip
| 1.Keep the older tax types and tax codes, and then create the new tax types and new tax codes. Then setup the new tax code lookup as mentioned in the Product documentation. 2.Add an approval flow on the Invoice Reconciliation (IR) document. | Invoice will be created on Business Network site by Supplier, either with old tax type or new tax type. Note - Need to educate Suppliers to create an invoice with older/newer tax type. The invoice should contain only one tax rate, either 10% or 8% (one tax rate per invoice) per invoice. Note - When supplier create invoice against contract, supplier must add Tax in Header level. Supplier will punch-in to Buying application so that steps will be different from PO flip invoice creation. | 1.Invoice received on SAP Buying and Invoicing may get various exceptions in the IR document . 2.1.Edit the IR document under Line View > View Tax Details > Select the old tax code and view the prorated header tax information. 2.2.Edit the IR document under Exceptions > Select the new tax code. 3. Verify if the proration is happening correctly or not in the Line View. If the information is correct, then submit the IR document. |
| Paper invoices (Created in SAP Buying & Invoicing) | Buyers need to create an invoice with either old/new tax type. The invoice should contain only one tax rate, either 10% or 8% (one tax rate per invoice) per invoice. Note – Do not create invoice with multiple tax rate on the same invoice. | ||
| ERS invoice (Created in SAP Buying and Invoicing) Here, the invoices are created automatically based on tax code mentioned in the PO | 1.Invoice will be created automatically when Buyer receives items. 2.Buyer need to receive items that belong to the same tax rate per receipt. (Buyer can either receive items with 8% or 10% at a time) Note – Do not receive items that belongs to different tax rates in the same receipt. |
Additional Information
How to recover if multiple tax rate invoice is issued with same tax type?
- Reject the IR and re-create the invoice with single tax rate (or)
- Reject the IR and perform “Negative receipt” setting minus value in goods receipt, and then create new receipt with single tax rate for ERS. (Negative IR need to be rejected as well).
Note: Old tax type/tax code and new tax type/tax code need to be differentiated.
If tax codes are diverted to new tax type, exception cannot be cleared even if ERS invoice has single tax rate only.
Keywords
[Change Request ID: NG-6139] , KBA , AP-CR-CR , Customer Requirement , Product Enhancement
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