3787214 - Down payment amount calculated in MM purchase order does not match the expected gross amount in Manage Supplier Down Payment Requests app - SAP S/4HANA Cloud Public Edition

When creating a down payment request via the Manage Supplier Down Payment Requests app with reference to a purchase order, the down payment amount transferred from the PO is based on the net value. When calculating the tax amount, the system treats this amount as a gross value (inclusive of tax), resulting in a lower tax amount than expected.

Example:

• Tax category is set to "-B (Input tax - down payment managed gross)" in the Manage G/L Account Master Data
• PO net amount: 50,000 INR, down payment percentage: 100%
• Down payment amount transferred to app: 50,000 INR
• Tax rate: 9% CGST + 9% SGST = 18%
• Expected: base amount 50,000 INR, tax amount 9,000 INR, total 59,000 INR
• Actual: base amount 42,372.88 INR, tax amount 7,627.12 INR, total 50,000 INR

SAP S/4HANA Cloud Public Edition

1. Create a purchase order with a down payment percentage.
2. Open the Monitor Purchase Order Down Payments app and click "Create Down Payment Request".
3. In the Manage Supplier Down Payment Requests app, click the tax calculation icon.
4. Observe that the tax amount is lower than expected, as the system treats the transferred amount as gross.

The MM purchase order calculates the down payment amount based on the net value, while the Manage Supplier Down Payment Requests app treats the amount as a gross value inclusive of tax. This misalignment between MM and FI results in incorrect tax calculation when the "Propose Tax Amount" function is used.

This is a known product limitation. The user should manually enter the gross amount (net amount + tax) in the Manage Supplier Down Payment Requests app instead of using the value transferred from the PO.

For example, if the PO net down payment amount is 50,000 INR with an 18% tax rate, the user should manually enter 59,000 INR in the Manage Supplier Down Payment Requests app.

Down Payment, Purchase Order, Manage Supplier Down Payment Requests, Propose Tax Amount, Net Amount, Gross Amount, Tax Calculation, MM, FI, Misalignment , KBA , FI-FIO-AP-TRA-2CL , Transaction Apps: Public Cloud , Problem