After maintaining the Exemption for Business Partner Taxability on Avalara the Rate expected is not derived in the system.
SAP Business ByDesign
Reproducing the Issue
- Go to the Customer Invoicing work center.
- Go to the Invoice Documents view.
- Click respective Invoice.
- Click View All.
- Go to the Items tab.
- Go to the Taxes sub tab.
Tax Rate is not the Tax Rate that was set on Avalara for this exemption.
The Customer Code getting picked is the Company ID and not the Customer ID, while the exemption was maintained for the Customer ID.
The Customer Code is destination based only in standard scenarios, where Nexus is set up. This scenario is non-standard and the Customer Code in this case is 'Contract From' hence the Company ID.
In this particular case, the Nexus setup is missing in the system. Company Tax Arrangement was not maintained (can be seen in the Company Tax Arrangements work center) specific to the relevant Jurisdiction (Ship-To jurisdiction) for the relevant Company.
This is causing the issue.
If Nexus was set up for the Company in Ship-To jurisdiction, Ship-To would have been picked as Customer Code and exemptions would have been applied.
If there is no Nexus, there is no Tax. The Tax Code determined automatically by the system was 507 – Non Taxable Sale Under Nexus Rules.
Please maintain Nexus for the relevant Company and Jurisdiction to relevant State (basically Tax Number in Company Tax Arrangement) and the exemptions will get determined correctly.
Avalara, Nexus, Exemption, Company Code, Customer Code, Tax , KBA , avalara , exemption , nexus , customer code , company code , tax , AP-TTE-TC , Tax Calculation , How To