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Sales Tax Issue

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Posted on by shuhaib

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Hi All

We had 5 % VATtill May 2020 .

Starting June we have 15 % VAT .

For sales order with Delivery Remainder after June we have 15 % VAT .

This sales order has invoice with 5 % VAT as Well as 15 % VAT .

For the one with 15 % VAT we have return .

When we make credit note the VAT amount is not appearing .

Kindly suggest

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Ludwig Reinhard Microsoft Employee on at

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Hello Mohamed,

What do you mean exactly when you say that the VAT amount is not appearing?

Where is it not appearing?

How was the credit note created?

Has the credit note been posted already?

Would be great if you could provide some additional information.

Many thanks,

Ludwig

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shuhaib 339 on at

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Hi Ludwig

Credit note created from sales order lines By selecting the already posted invoice

When created a new sales line is created with the return quantity (in minus )

When we check the sales tax for this line the value is showing zero .

Both sales tax group and item tax group are selected for 15 percent

The sales return is not posted yet .

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Junaid Idrees on at

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Hi Mohamed Shuhaib,

Before invoicing the SO credit note line, Can you check the following:

1. Sales Order screen >> Sell >> Tax section (Is it showing your Sales Tax code in the Grid)

2. Sales order >> Line Details >> Double check Item Sales Tax Group & Sales Tax Group are selected

2. Can you make sure you Sales Tax code >> Values section >> From and To dates are correctly defined for 15 % VAT

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Ludwig Reinhard Microsoft Employee on at

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Hello Mohamed,

How did you enter the new 15% rate?

Can you share a screenprint that illustrates how this was setup?

Many thanks,

Ludwig

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shuhaib 339 on at

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Hi Ludwig

First 3 screen shot is of Tax Setup

next 3 screen shot is of Credit note

Credit not created from sales order line --> Credit note --> selecting the sales invoice

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Ludwig Reinhard Microsoft Employee on at

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Hi Mohamed,

So you created a brand new sales tax code for the 15% rate, right?

Have you tried changing the from date that has been entered in the rate.

The from date cannot be read clearly from your screenprint but I wonder what would happen if you change this from date value?

The code is new and has not been used before.

So, can you test what happens if you put - let's say - 1st January 2020 in the from date?

Best regards,

Ludwig

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shuhaib 339 on at

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Hi Ludwig ,

We did create new sales tax ,

But for items sales tax we included both local 15 and local 5 in one STD Local .

The issue is happening for sales return which has sales invoice before July with 5 percent and after July with 15 percent .

For returns sales with only 15 percent sales tax In sales invoice list ,is working fine .

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Ludwig Reinhard Microsoft Employee on at

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OK.

Have you tried setting the from date in the sales tax code/rate field e.g. to May or June?

Does that fix the issue?

Best regards,

Ludwig

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Junaid Idrees on at

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From your 1st question, this is what i understand:

5% VAT till May

15% VAT starting June

On Sales order, there is some remaining Qty. that you want to return back on 15%. Now if your order date is before June then i suggest you to keep your start date from May or June 1st 2020 for 15% local tax. Why did you set it up from July?

Did you tried creating a new return order as well for same customer just to check the impact? There could be something wrong with your initial order.

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shuhaib 339 on at

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Hi Ludwig

I changed the starting date to Jan 2020, VAT calculated .

Could you please guide me how to take it ahead . ?

As we have Audit team they will be questioning on it ,.

one more thing is that we have selected the invoice number with 15 % to make return order . ?

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