Modifying taxes, charges and discounts

This page allows you to modify the tax, charge and discount details of the invoice. Tell me more.

Select the “T/C/D” link at the bottom of the “Edit 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 “Draft”, “Fresh” or “Returned”.
	Draft – indicates a newly created invoice that cannot be authorized.
	Fresh – indicates a newly created invoice that can be authorized.
	Returned – indicates an invoice that has been returned for modification.

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 method in which the tax, charge or discount must be calculated. You can calculate the tax, charge or discount “For Document” or “For Line Item”.
	For Document – indicates that the tax, charge or discount is calculated for the invoice as a whole.
	For 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 item details appear in the invoice. Sequential numbers will be available for selection based on the rows in which the item 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.

Part/T/C/D #	The code identifying the part, tax, charge or the discount.
Part/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 #” 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.
Taxable Amount	The amount for which the tax, charge or discount must be calculated for the invoice or the line. This amount will be displayed when the “Compute” pushbutton is clicked.

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

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. The system displays the invoice currency by default on launch of the page.

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 part 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”.

Payment Schedule

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

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

Financial postings

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 debits the TCD Amount in the “Supplier Control Account” if it is lesser than zero and credits the TCD Amount if it is greater than zero.

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

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

You can modify the TCD details if the invoice is in the “Draft”, “Fresh” or “Returned” status. You can modify the method in which the TCD has been calculated. You can modify the code identifying the tax, charge, discount and the variants. You can also modify the TCD amount, the cost center to which the TCD account is mapped and the analysis and the sub analysis code allocated. The system saves the modifications made the TCD details.

The modified 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 of the company. A payment schedule is generated based on the modifications made to the TCD details.

This page also allows you to authorize the invoice while saving the modifications made to the TCD details. The status of the invoice is updated as “Authorized”. The details of this invoice cannot be modified any longer.