1621997 - No taxes calculated for US - Tax Code US 507

SAP Knowledge Base Article - Public

1621997 - No taxes calculated for US - Tax Code US 507

Symptom

When you create CRM sales documents (e.g. Sales Order, Customer Invoice) tax code 507 is determined for tax country US.

Environment

SAP Business ByDesign

Reproducing the Issue

  1. Create a new CRM sales document or edit an existing one.
  2. Fill in the mandatory data.
  3. No taxes are calculated for items with tax code 507, which can be seen on sub tab taxes of item tab.

Cause

A sale to a particular US state is only taxable in case the seller has a nexus in this state. Without nexus, no sales tax will be determined. The system determines that a company has nexus in a particular US state if, and only if, there is a company tax arrangement with a tax registration for this state.
A company tax arrangement must be created for every tax authority that is relevant. For tax calculation to work properly, a tax registration number of type “State Sales and Use Tax Registration Number” has to be entered. This documents that the company is tax registered in the state where the tax authority is located, and provides the basis for nexus determination in the tax determination.

Resolution

  1. Go to the Tax Management work center.
  2. Go to the Tax Authorities view.
  3. Click on the button New - Tax Authority or edit the relevant one in case this is already existing.
  4. Click on the button View All.
  5. In case you create a new Tax Authority, fill in all the mandatory data on the tab General. Please note, for US the State field is mandatory for a correct tax calculation.
  6. Go to the tab Company Tax Arrangement and create a tax arrangement for the concerned company and region. Ensure that a tax number of number type State Sales and Use Tax Registration Number is used.
  7. Click on the button Save.
  8. Trigger a new tax calculation in the affected document.

Keywords

seller, nexus, state, tax management, company tax arrangement, tax authority, calculation, determination, évèmenent fiscal, gestion des taxes, administration fiscale, tva , KBA , SRD-CC , Cross Components , How To

Product

SAP BUSINESS BYDESIGN 1708 ; SAP Business ByDesign 1711