2066136 - No Tax Calculated For Tax Country CA - Canada in New Charge/Credit

SAP Knowledge Base Article - Public

2066136 - No Tax Calculated For Tax Country CA - Canada in New Charge/Credit

Symptom

A new charge/credit entry for customer account doesn't calculate tax and picks the tax rate as 0 %.

Reproducing the Issue

  1. Go to the Receivables work center, and choose the Customers view.
  2. Select the Customer Accounts subview.
  3. Select the customer XYZ, and choose View.
  4. Choose New Charge/Credit.
  5. In the New Charge/Credit screen, enter the required information.
  6. In the Line Items table, choose Add Row, enter the required tax code and other details.

You observed that tax rate picked is 0% for the combination of tax code and its tax type.

 

Cause

You have defined the tax rates and tax validity dates for the selected region and tax rate type in the activity Tax on Goods & Services - Canada only but the combination for country is missing in the activity Tax Rate Schedules under Tax on Goods & Services.

Resolution

  1. Go to Business Configuration Work Center.
  2. Open the  Activity List.
  3. Find Tax on Goods and Services.
  4. In the activity, select the hyperlink Tax Rate Schedules.

You can define the tax rates and the tax validity dates belonging to these tax rates. If you selected a country during scoping or if you are required to calculate tax for a country, you should verify the rates and their settings. You must specify tax rates for Canada and the US in another activity Tax on Goods and Services <Canada> for region level tax declaration.

Particularly for Canada & US we have two activities to complete

  1. Tax on Goods and Services
  2. Tax on Goods and Services <Canada>/<US>

Failing to update the tax rate combination either in tax rate schedule or tax rate schedule <Canada> if the tax country is Canada then the result in tax calculation lead to 0% in New Charge/Credit or in any other receivables.

Keywords

KBA , AP-CI , Customer Invoice Processing , How To

Product

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