Override VAT on a Grower Agreement

Background

In support of cases where the eventual consumer of grower and commodity produce may differ, and the resulting requirement for VAT variation, flexibility to override the fixed VAT code on Purchase costing elements is available. This document describes the configuration required against the Grower Agreement and VAT set up to achieve this.

Outcome

Because Grower Agreements are set up as Self Billing, where VAT override is configured, this will systematically be applied at line level during invoicing.

Main programs

• 'Available Object Ctrl Parameters. Open' (CMS016)
• 'VAT Exception. Open' (TXS020)
• 'Costing Element. Open' (PPS280)
• 'Purchase Agreement. Open Lines' (PPS101)

Configure VAT override on Grower Agreement

Where object control parameters are configured for VAT override in 'Available Object Ctrl Parameters. Open' (CMS016), and a Costing Model is specified at line level on an agreement specified as type Grower Agreement in 'Purchase Agreement Type. Open' (PPS110), the VAT code that would normally be retrieved from 'Costing Element. Open' (PPS280) is overridden based on an alternate costing model specified in 'VAT Exception. Open' (PPS280).

Follow these steps

Set up object control

1. Using sorting order '2-Program' in 'Available Object Ctrl Parameters. Open' (CMS016/B1), search for program TXS020.

2. Select related option 11 (ob tbl det lin) against the TXS020 record returned.

   'Generic Object Control Screen' (CMS017/B1) is displayed.

3. Create or double click on the record with "start value 2 = 3" (replacement VAT code for purchases).

   'Generic Object Control Screen' (CMS017/E) is returned.

4. Specify Costing model ID 'IBWSCA' at the required sequence / priority level and click next. Normally IBWSCA is combined with other fields on a priority level. See 'Define VAT Exceptions' for rules around priority set up.

   'VAT Exception. Open' (TXS020/B1) is displayed which can then be closed.

Define costing model on agreement line

1. Start 'Purchase Agreement. Open' (PPS100) for the required agreement.

2. Navigate to 'Purchase Agreement. Open Lines' (PPS101).

3. Specify Costing Model as required for each of the lines on the agreement.

   The specified costing model ID is copied from the agreement line to the PO-line and can also be viewed at the purchase order line level in program 'Purchase Order. Open Lines' (PPS201).

4. When goods are received against a Purchase Order with agreement line set up in this way, the self-billing process is triggered and the VAT code that would normally be retrieved from the costing element is overridden.