Tax exemption though maintained in Product master data, system is not considering it while determining tax code in the Purchase order, hence you see wrong tax code in purchase order.
SAP Business ByDesign
Reproducing the Issue
- Go to Purchase Requests and Orders work center
- Go to Purchase Orders
- Search for respective Purchase Order and click on edit
- Go to Items tab
- Navigate to Taxes tab
You will see a different tax code other than what you expected as per exemption that you maintained in Product master data.
The region/ province/state of tax exemption reason maintained in product master is taken in to consideration for tax determination.so system searches for respective region/ province/state in the Ship to address/Recipient address of the purchase order. If not found system does not consider the exemption.
- Go to Supply chain design master data work center
- Go to Locations View
- Search for the Ship to that is maintained in purchase order
- Select it and Click on Edit
- Scroll down and go to Site address section
- Scroll down and Click on Additional fields
- In the pop up enter the Region/state/ province
KBA 2770419 - Exemption related Tax code is not determined
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