SAP Knowledge Base Article - Public

1654266 - Tax Calculation not Triggered in Supplier Invoice for Sales and Use Tax (US)

Symptom

You create a supplier invoice and the calculated tax amount remains 0,00 USD after selecting the tax code.

Reproducing the Issue

  1. Go to the Supplier Invoicing work center.
  2. Go to the Invoices and Credit Memos view.
  3. Select the relevant invoice and choose Edit.
  4. In tab General, subtab Taxes, the Tax rate is 0% and the Calculated Tax Amount remains 0,00 USD.

Cause

The determination of the tax rates is done based on the available address information of the related parties in your invoice document. In the supplier invoice, there is no tax jurisdiction code defined for the Ship-From and Ship-To parties. Furthermore, in the Business Configuration (activity Tax on Goods and Services -> US Sales Tax Rate Schedules), the tax rates on US state level (for example, CA - California) for Sales and Use Tax are not defined. Consequently, the correct tax rate cannot be retrieved from the Business Configuration.

Resolution

  1. Go to the Supplier Invoicing work center.
  2. Go to the Invoices and Credit Memos view.
  3. Select the relevant invoice and choose Edit.
  4. Go to the Items tab, then the Partners subtab.
  5. Maintain a Tax Jurisdiction Code for the Ship-From Address and the Ship-To Address.
  6. Select Actions -> Calculate Total Amounts.

Alternatively, you can define a tax rate on US state level:

  1. Go to the Business Configuration work center.
  2. Go to the Implementation Projects view.
  3. Select Show: All Open Projects.
  4. Select the relevant project and then Open Activity List.
  5. Select the Fine-Tune chevron.
  6. Select the activity Tax on Goods and Services and then Open.
  7. Choose US Sales Tax Rate Schedules.
  8. Maintain a tax rate on US state level (for example, CA - California)

To maintain a tax jurisdiction code for a party:

  1. Go to the Business Partner Data work center.
  2. Go to the Business Partners view.
  3. Select the relevant party and choose Edit -> Addresses.
  4. Go to the General tab.
  5. Maintain a Tax Jurisdiction Code.

 

Keywords

KBA , AP-SIP , Supplier Invoice Processing , How To

Product

SAP BUSINESS BYDESIGN 1708 ; SAP Business ByDesign 1302 ; SAP Business ByDesign 1305 ; SAP Business ByDesign 1308 ; SAP Business ByDesign 1311 ; SAP Business ByDesign 1711 ; SAP Business ByDesign feature pack 2.6 ; SAP Business ByDesign feature pack 3.0 ; SAP Business ByDesign feature pack 3.5 ; SAP Business ByDesign feature pack 4.0