SAP Knowledge Base Article - Public

2478712 - Tax Code is not Determined or Wrong Tax Code is Determined

Symptom

Tax code is empty in the Purchase order/ supplier invoice which should have been determined automatically or its determined wrongly.

 or

You may receive error :Determination of tax code failed

Environment

SAP Business ByDesign

Reproducing the Issue

  1. Go to Purchase Requests and Orders work center
  2. Go to Purchase Orders view
  3. Search for relevant Purchase Order
  4. Navigate to Items Tab
  5. Further go to Sub-Tab Taxes
  6. Where you will see that Tax code is empty though Automatic Determination check box is checked

Cause

No Tax code exists for combination of Tax Event ABC and Tax Rate Type XYZ for Country Code YY hence the Tax Code is not determined.

Resolution

Follow the below steps to find and maintain the correct Tax code for the respective purchase order:

A.Steps to see the Tax Rate type maintained for each product in respective Purchase Order item:

  1. Go to Products Portfolio work center
  2. Go to Products view
  3. Search for the Product appearing in the Purchase Order item
  4. Navigate to Tax tab
  5. Where you can see that for Country code YY you have maintained the Tax Rate type XYZ

B.Steps to see the Tax event determined for Purchase Order:

  1. Go to Purchase requests and orders work center
  2. Go to Purchase orders view
  3. Select the relevant Purchase order and select Edit
  4. Navigate to Actions button and choose Activate Tax Trace then select Save button
  5. Go to  Items tab and then go to Taxes Sub tab and Select the  link  Display appearing against the Tax Trace Details
  6. Here you can see that the Result :ABC appearing at the end which is  the Tax event ,For example: Domestic purchase
  7. Please check all the questions appearing above the Result in the decision tree,to understand why the respective tax event was determined based on the Purchase document details especially the delivery address(which should not be empty)(ship from and ship to) also Supplier master data and  product master data.

C.Steps to maintain the Tax Codes:

  1. Go  to Business Configuration work center
  2. Go to Implementation Projects view
  3. Select Activity list
  4. Navigate to Fine tune
  5. Show All Activities and search for Tax on Goods and Services
  6. Choose Define Tax codes
  7. You can see that no Tax Code exists for Tax Event ABC and Tax Rate Type  XYZ for Country Code YY, hence the Tax Code is not determined.

So we request you to create new Tax code for the above mentioned combination

See Also

2891848 - Wrong tax country In Purchase order or supplier invoice

Keywords

Determination of tax code, tax code empty, tax code failed , KBA , wrong tax code , AP-POP-PO , Purchase Order , AP-SIP , Supplier Invoice Processing , How To

Product

SAP Business ByDesign all versions