Modifying taxes, charges and discounts

This page allows you to enter any additional tax, charge and discount details for the invoice apart from the taxes, charges or discounts (TCD) available in the purchase order or any other document referred. Tell me more.

Select the “T/C/D” link at the bottom of the “Authorize Invoice” page.

The “Tax / Charge / Discount” page appears.

The system displays the following:

Invoice #	The number identifying the invoice.
Status	The status of the invoice. It must be “Fresh”.
	Fresh – indicates a newly created invoice that can be authorized.

Note: If matching has been done in the main page, the status of the invoice could also be “Matched” or “Auto Match Failed”.

Enter the following fields:

T/C/D Computation	Use the drop-down list box to select the level at which the tax, charge or discount must be calculated. You can add the tax, charge or discount “On Document” or “at Line level”.
	Document – indicates that the tax, charge or discount is calculated for the invoice as a whole.
	Line Item – indicates that the tax, charge or discount is calculated for each individual row of the invoice.
	The system displays “Blank” by default on launch of the page.

Note: If “For Document” is selected the system displays the total invoice amount in the transaction currency in the “Line Amount” field. If “For Line Item” is selected the system displays the amount charged for the line item in the transaction currency in the “Line Amount” field and generates line numbers in which the “Part” is available.

Line #

Use the drop-down list box to select the number identifying the line in which the part details appear in the invoice. Sequential numbers will be available for selection based on the rows in which the part details are available. The system displays “Blank” by default on launch of the page.

Note: This field must not be left blank if “For Line Item” has been selected in the “T/C/D Computation” field.

The system displays the following:

Line Amount

The invoice amount or the line amount.

Note: If “For Line Item” is selected in the “T/C/D Computation” field the amount for the selected line number will be displayed in the transaction currency.

If “For Document” is selected in the “T/C/D Computation” field the total invoice amount will be displayed in the transaction currency.

T/C/D #	The code identifying the part, tax, charge or the discount.
T/CD Variant #	The code identifying the part, tax, charge or the discount variant.
Description	A textual description of the code identifying the part, tax, charges or discount.

Modify the following fields if required in the “T/C/D Information” multiline:

T/C/D

Use the drop-down list box to indicate whether tax, charge or discount is being calculated for the part in the line. You can select from “Invoice Tax”, “Invoice Charge” or “Invoice Discount”. The system displays “Blank” by default on launch of the page.

Note: One type must be selected in at least one row of the multiline.

T/C/D #	The code identifying the tax, charge or discount based on the value set in the “T/C/D” field (Alphanumeric, 10). Mandatory. This code must have been defined in the “Taxes / Charges / Discounts” business component and must be in “Active” status. The code entered in this field must be unique for the individual line.
	Help facility available

Note: The tax, charge or discount must be applied only once either at the “Document Level” or at the “Line Level”.

Variant #

The code identifying the variant of the tax, charge or discount (Alphanumeric, 10). Mandatory. This variant must be valid for the code entered in the “T/C/D Code” field.

Note: This field must not be left blank if a T/C/D code is entered in the “T/C/D #” field”.

The system displays the following in the “T/C/D Information” multiline:

Description	A description of the code identifying the tax, charge or discount or the variant.
TCD Rate	The unit rate of the tax, charge or discount selected.

Modify the following fields if required in the “T/C/D Information” multiline:

Taxable Amount	The amount for which the tax, charge or discount must be calculated for the invoice or the line.
TCD Amount	The amount that will be the tax, charge or discount for the part available in the line.

Note: This field must not be left blank if tax, charge or discount has been selected in the “T/C/D” field.

Currency

Use the drop-down list box to select the code identifying the currency in which the TCD amount has been calculated. You can select from the base currency and the invoice currency that is available in the alphabetical order. The system displays the invoice currency by default on launch of the page.

The system displays the following field:

Account Rule

Indicates where the value of TCD # and TCD Variant # will be added which could be “Add to Stock” or “Expense”.

Enter the following fields in the “T/C/D Information” multiline:

Cost Center	The code identifying the cost center that has been mapped to the “TCD Account” (Alphanumeric, 10). The cost center must have been defined in the “Cost Setup” business component.
	Help facility available
Analysis #	The analysis code to which the “TCD Account” is mapped to in the “Account Based Budgeting” business component (Alphanumeric, 5).
	Help facility available
Sub Analysis #	The sub analysis code to which the analysis code is mapped to in the “Account Based Budgeting” business component (Alphanumeric, 5).

Check the box in the “Select” column of the multiline to mark a tax, charge or discount for deletion.

Click the “Compute” pushbutton to calculate the T/C/D amount.

The system calculates and displays the amount that is taxable and the amount that can be charged as TCD in the “Taxable Amount” and the “TCD Amount” fields.

The system also calculates and stores the TCD amount in the base currency of the company.

The system calculates and stores the total invoice amount as the difference of the discount and the sum total of the line amount, taxes and the charges.

Click the “Save” pushbutton to save the modifications made.

Posting Details

In “Company Parameter Set Up” business component under “Set Common Parameters” activity, if the “Statutory Tax Computation and Accounting Required” field is set as ‘No’ the following is carried out:

The system saves the TCD code along with the variant and the TCD amount in the transaction currency and debits the “TCD Account” when the “TCD Type” is “Invoice Tax” or “Invoice Charges”.
The system saves the TCD code along with the variant and the TCD amount in the transaction currency and credits the “TCD Account” when the “TCD Type” is “Invoice Discount”.
The system credits the TCD amount in the transaction currency when the “TCD Type” is “Invoice Tax” or “Invoice Charges” and debits the “Supplier Payable Account” when the “TCD Type” is “Invoice Discount”.

If the “Statutory Tax Computation and Accounting Required” field is set as ‘Yes’ the following entries will be posted for the TCD of type ‘Invoice Tax’:

If Tax nature is ‘Payable’ and Tax type is other than ‘Service Tax’ the system debits the “TCD Account” and credits “Supplier Payable Account”
If the Tax nature is ‘Payable’ and Tax type is ‘Service Tax’, the system debits the “Service Tax Provision Payable Account” and credits “Supplier Payable Account”
If the Tax nature is ‘Zero Sum Game’, the system debits the “TCD Account” and also credits the same “TCD Account”
If the Tax nature is ‘Withholding Tax’, the system credits the “TCD Account” and debits “Supplier Payable Account”

Note: The total TCD Amount for the invoice is calculated as the sum of all TCD Amounts that have TCD Type as “Invoice Tax” or “Invoice Charge” less the sum of all TCD Amounts that have TCD Type as “Invoice Discount”.

The system credits the total invoice amount in the “Supplier Payable” account.

If the item type is “Part”, “PO Tax” or “PO Charge” the system debits the transaction amount in the “Supplier Suspense” account. The system posts the transaction for every individual line of the invoice.

If the part type is “PO Discount”, the system credits the transaction amount in the “Supplier Suspense” account. The system posts the transaction for every individual line of the invoice.

The system calculates the exchange rate variance for the invoice. If the invoice value is lower (favorable variance), the system credits the variance amount in the “Exchange Variance” account. If the invoice value is greater, (unfavorable variance), the system debits the variance amount in the “Exchange Variance” account.

If the invoice quantity and the proposed quantity are different, the system calculates the quantity variance. If the invoiced quantity is greater, the system debits the variance quantity in the “Invoice Quantity Variance” account. If the invoiced quantity is lesser than zero, the system credits the variance quantity in the “Invoice Quantity Variance” account.

If the invoice rate and the proposed rate (in invoice currency) are different, the system calculates the rate variance. If the invoice rate is greater, the system debits the variance quantity in the “Invoice Rate Variance” account. If the invoice rate is lesser, the system credits the variance quantity in the “Invoice Rate Variance” account.

The system posts the variance amounts in the “FA Suspense Account” or the “CWIP Account” if the purchase order is of type “Capital”.

When the Supplier Invoice amount is not equal to the Total Invoice Amount and no TCD is added in the invoice, then expense account would be the 'Account Code' mapped to the Predefined Accounting Usage ID " FRGHTEXP ".

When the TCD added in the invoice is of account rule 'Expense off' and the Supplier Invoice Amount = Total Invoice Amount, then the expense account would be the 'Account Code' mapped to the Predefined Accounting Usage ID " FRGHTEXP ". TCD account code is the account code mapped to the TCD added in the Invoice.

When there is no TCD added in the invoice is of account rule 'Add to Stock' and the Supplier Invoice Amount = Total Invoice Amount and the Parameter for stock correction is set as 'No', the expense account would be the 'Account Code' mapped to the Predefined Accounting Usage ID " FRGHTEXP ".

When the TCD added in the invoice is of account rule 'Add to Stock' and the Supplier Invoice Amount = Total Invoice Amount and the Parameter for stock correction is set as 'Yes' and stock is still available in the inventory, then expense account would be the 'Account Code' mapped to the Predefined Accounting Usage ID " FRGHTEXP ". Auto stock correction will happen against the inventory value (based on the Goods received through GR mentioned in the Delivery Charges Invoice).

When the TCD added in the invoice is of account rule 'Expense off' and the Supplier Invoice Amount is not equal to Total Invoice Amount, then the expense account would be the 'Account Code' mapped to the Predefined Accounting Usage ID " FRGHTEXP ". No Auto Stock correction will happen.

When there is no TCD added in the invoice is of account rule 'Add to Stock' and the Supplier Invoice Amount <> Total Invoice Amount and Parameter for stock correction is set as 'No', the expense account would be the 'Account Code' mapped to the Predefined Accounting Usage ID " FRGHTEXP ".

When the TCD added in the invoice is of account rule 'Add to Stock' and the Supplier Invoice Amount is not equal to Total Invoice Amount and Parameter for stock correction is set as 'Yes' and Stock is still available in the inventory, then expense account would be the 'Account Code' mapped to the Predefined Accounting Usage ID " FRGHTEXP ". Auto stock correction will happen against the inventory value (based on the Goods received through GR mentioned in the Delivery Charges Invoice).

When the TCD added in the invoice is of account rule 'Add to Stock' and the Supplier Invoice Amount is not equal to Total Invoice Amount and the Parameter for stock correction is set as 'Yes' and Stock is not available in the inventory, the expense account would be the 'Account Code' mapped to the Predefined Accounting Usage ID " FRGHTEXP ". No Auto Stock correction will happen.

Click the “Save and Authorize” pushbutton to save the modifications made and authorize the invoice.

The system credits the total invoice amount in the “Supplier Payable” account.

If the part type is “PO Discount”, the system credits the transaction amount in the “Supplier Suspense” account. The system posts the transaction for every individual line of the invoice.

The system posts the variance amounts in the “FA Suspense Account” or the “CWIP Account” if the purchase order is of type “Capital”.

Payment Schedule

The system generates a payment schedule after the saving the modifications made to the tax, charge or discount details.

The system updates the status of the individual line and the document status as “Unreconciled” for an invoice where the “Invoice before GR” parameter has been set as “Yes” in the corresponding purchase order.

The system stores the login ID of the user and the system date along with the invoice details.

Click the “Return” pushbutton to return the invoice to the user who created it for modification.

The system updates the status of the invoice as “Returned”. The system updates the login ID of the user and the system date in the “Last Modified By” and “Last Modified Date” fields.

To proceed, carry out the following

If Swiss pay modes are not applicable for the company, select the “Payment Schedule” link at the bottom of the page to view or modify the payment schedule.

Select the “Invoice Summary” link at the bottom of the page to view the summary of the invoice.

Select the “Accounting Information” link at the bottom of the page to view the account posting information.

Modifying taxes, charges and discounts – An overview

TCD of an invoice is calculated at the document level or for the line item. The system retrieves the existing tax, charge or discount details. You can enter the code identifying the tax, charge, discount and the variants for the extra TCD that you want to add. You can also enter the TCD amount, the cost center to which the TCD account is mapped and the analysis and the sub analysis code allocated to it. The total TCD amount for the invoice is posted to the selected finance book under the various account heads in the account currency, base currency of the company and the parallel base currency (if applicable) of the company.

The details of the TCD that are entered in this page can be modified as long as the invoice remains in the “Draft” or “Fresh” status. This page also allows you to authorize the invoice. The status of the invoice is updated as “Authorized”. The system stores the login ID of the user and the system date along with the invoice details. The details of this invoice cannot be modified any longer.

This page also allows you to return the invoice to the user who created it for modification. The system updates the status of the invoice as “Returned”. The system also stores the login ID of the user and the system date along with the invoice details.