Stamp Duty Processing

In certain countries, a stamp duty must be applied under certain circumstances to all legal documents, including invoices and debit/credit memos.  The stamp duty is a fixed amount which is applied if the total amount of the document is greater than the limit amount and if the document date is greater than or equal to the validity date.  The fixed amount and the limit amount are defined on Reference File category M01.

In order to apply stamp duty to an open item, the following conditions must be met:

·     The document must be in the bookkeeping currency, which will be validated against Reference File category 002.

·     All document lines must use a VAT code with an exonerated or suspended VAT type.  (For information on exonerated or suspended VAT types, see the VAT Processing key concept in this manual.)

·     The total document amount must be greater than the limit amount defined on Reference File category M01.

·     The bill-to customer must be billed for the stamp duty amount.

In order for the stamp duty to be processed, you must define a stamp duty part on the Order Processing System Defaults (Reference File category 413).  This part must also be defined on the Part Master File as a reference part (Part Type of 5).  You must also set the Apply Stamp Duty flag to ‘Y’ on the Billing Information screen in the Customer Master Maintenance conversation.

Once all the processing options have been set up and if stamp duty is applied, then the stamp duty part will be used automatically to write a new distribution line to the open item and to retrieve the correct sales account from Reference File category 302.  In order to process VAT for the stamp duty part, the VAT code on Reference File category M01 should be defined as an exonerated or suspended VAT type for the purpose of the stamp duty part.  The stamp duty is always charged to the customer on invoice and debit memos and is always credited to the customer on credit memos.

The stamp duty will only be applied to orders that are automatically created.  It will be automatically calculated at billing time and will not appear on any orders.  The following programs will process stamp duty:

·     Synchro Shipping and Billing Update (GA270E)

·     Shipping and Billing Update (OP125E)

·     Postbilling (OP130E)

·           Consolidated Billing Update (OP640E)