SAP Knowledge Base Article - Public

2891848 - Wrong tax country In Purchase order or supplier invoice

Symptom

You see a wrong tax code or wrong tax event appearing in the Purchase order or supplier invoice.

Environment

SAP Business ByDesign

Reproducing the Issue

  1. Go to the Supplier Invoicing work center
  2. Go to the Invoices and Credit memos view
  3. Select the relevant Supplier Invoice
  4. Navigate to Items tab and select sub tab Taxes
  5. You can see that incorrect tax code when the Automatic tax code determined check mark is there

or

  1.  Go to purchase request and  orders work center
  2.  Go to  Purchase orders
  3.  Search for respective purchase order
  4.  Go to view all and then taxes tab
  5. You can see that incorrect tax code when the Automatic tax code determined check mark is there

Cause

The Tax Country field is determined by the country in which acquisitions are reported for tax declaration. It is not supposed to show the Supplier's country specifically, but the country where the purchase is being triggered.

So the tax country of purchase order/ invoice in general depends on below details and they are listed based on priority on which they are considered to determine the tax country.

1.Country updated manually under delivery address

2.Site

3.Ship to

4. Recipient( we have this field only in case of non stock Purchase order, Thirdparty and invoice )

5.Company address

This tax country is then used to determine the Tax event and  there after Tax code is determined .

also Tax country appearing under taxes tab controls the list of taxes appearing in the drop down to choose under tax code field.

Note:

When you provide a value against the Recipient, the delivery address is copied from the Workplace Contact Data of the employee master data.

When you provide a value against the Ship-to/Service Location, the delivery address is copied onto the shopping cart from the Site Address of the supply chain design master location data.

When value is entered against both Recipient and Ship-to/Service Location in shopping cart, the delivery address in Ship-to/Service Location is selected.

Resolution

So maintain the Correct details under

Sub tab Delivery under Item tab in  Purchase order

 or

 Sub tab Parties and locations under Item tab in Invoice

See Also

2763883 - Incorrect Tax Code and Tax Country Defaulted in Supplier Invoice for Service Item

Keywords

unexpected tax code,invalid tax code, tax code changed,worng tax event , wrong tax code, Supplier country is not the tax country , KBA , AP-POP-PO , Purchase Order , AP-SIP-SIV , Supplier Invoice , How To

Product

SAP Business ByDesign all versions