1662474 - Tax issues during migration of Accounts Receivables / Payables

SAP Knowledge Base Article - Public

1662474 - Tax issues during migration of Accounts Receivables / Payables

Symptom

Error related to tax calculation during migration of accounts receivables/payables for countries USA, Canada, India, or Brazil, such as invalid or missing tax region, state, tax jurisdiction code, or permanent establishment.

Cause

Open accounts receivables and payables need to be migrated into ByD according to as they have been booked in the legacy system.

Hence tax information as the taxable country and the tax case (set by the tax code) must be provided by the customer. These information are contained in the sheet Tax Data of the migration upload file, in the column "Tax Data - Country of Tax Authority" and  "Tax Data - Tax Code".

For some countries, additional information is required as the tax region / state, the tax jurisdiction code or the permanent establishment. As this data is not mandatory in general, these columns are hidden in the upload file and need to be blended in and filled out for these countries. In case this tax data is not provided in the migration upload file, tax calculation fails and the entry cannot be processed.

Resolution

Even though the columns State, Tax Jurisdiction Code and Permanent Establishment ID under the section Tax Location are marked as optional, this is not the case for every country.

For the following tax countries, additionally must be provided as tax data:

  • USA: State and Tax Jurisdiction Code
  • Canada: State
  • India: Permanent Establishment Id
  • Brazil: State and Tax Municipality (provide Tax Municipality code into field Tax Jurisdiction Code),  possible from FP3.5

Keywords

KBA , SRD-FIN-TAX , Tax Management , How To

Product

SAP Business ByDesign all versions