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

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

Or you may receive error: Determination of tax code failed.

SAP Business ByDesign

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 checkbox is checked.

 or

1. Go to Supplier Invoicing work center.
2. Go to Invoices and Credit Memos views.
3. Select the respective Invoice.
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 checkbox is checked.

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.

Follow the below steps that are necessary for Tax code determination:

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

1. Go to Products Portfolio work center.
2. Go to Products view.
3. Search for the Product appearing in the 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:

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.
6. Select Taxes Sub-Tab.
7. Select the link Display appearing against the Tax Trace Details.
8. Here you can see that the Result: ABC appearing at the end which is the Tax event (for example: Domestic Purchase).

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. Pay special attention to the delivery address, which should not be blank, and includes both the 'ship from' and 'ship to' details. Additionally, consider the Supplier master data and the Product master data in your review.

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.

2891848 - Wrong tax country In Purchase order or supplier invoice

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