SAP Knowledge Base Article - Public

2879960 - US Taxes in Quantity Contract based down payments

Symptom

You are using the process ‘Quantity Contract based down payments’, included in scope item I9I.

The material is sold in the United States (US) with currency USD or in Canada with currency CAD.

When a SD down payment request (billing document) is released to accounting, in FI a down payment request is only a noted item on the customer account. Such a document cannot be  posted with a tax jurisdiction code. Therefore, no tax jurisdiction code is determined in a down payment request created for the quantity contract.

During creation of the delivery-related invoices of the call-off orders, the available down payment amount will be deducted.

The deduction only happens up to the net amount of the invoice. The tax amount always remains open to be paid.

Environment

Since SAP S/4HANA Cloud 2002

Cause

Down payment requests cannot be posted with Tax Jurisdiction Code in the US and Canada.

Resolution

This is standard behavior.

At the moment of delivery-related invoice creation of the contract call-off orders, the available down payment posted for the contract will be deducted.

The deduction of down payment happens per invoice up to the full net amount, if available. The tax amount of the invoice, will never be deducted from the available down payment.

Due to the fact that US down payment requests are posted as net amount, the deduction in an invoice also happens without deducting the tax amount.

Example:

A quantity contract A has a value of net 10000 USD + tax 400USD. A down payment of 10000 USD is posted for this contract.

You create 3 call-offs for this contract:

Call-off A 2000USD net + 80 USD tax

Call-off B 5000USD net + 200 USD tax

Call-off C 3000USD net + 120 USD tax

For these 3 call-off orders, delivery-related invoices are created, considering the received down payment. The tax amount is always open to be paid:

Invoice A: 2000USD down payment deducted, 80 USD open amount to be paid

Invoice B: 5000USD down payment deducted, 200 USD open amount to be paid

Invoice C: 3000USD down payment deducted, 120 USD open amount to be paid

When using the process ‘Quantity Contract based down payments’, in the partial and final invoices rounding differences with regards to the deducted down payments can occur. Meaning that even though the complete invoice amount is covered by available down payments, a small amount, for example 1 Cent appears to be open to be paid.

Keywords

US Taxes, Taxes, Down payment,  Quantity Contract based down payments,  Quantity Contract , KBA , SD-BIL-IV-DP , Down Payments , SD-BF-TX , Taxes , Problem

Product

SAP S/4HANA Cloud all versions