2481562 - Wrong Tax Country Determined While Ordering Intercompany Third-Party Purchase Order Document

SAP Knowledge Base Article - Public

2481562 - Wrong Tax Country Determined While Ordering Intercompany Third-Party Purchase Order Document

Symptom

You have created intercompany third-party purchase order document and system determines the wrong tax country.

Reproducing the Issue

  1. Go to the Purchase Requests and Orders work center.
  2. Go to the Purchase Orders work center.
  3. Select the relevant Intercompany Third-Party Purchase Order.
  4. Select Edit and navigate to Items tab.
  5. Select Taxes sub tab and here you can see the wrong Tax Country.

Cause

In this scenario, the Purchase Order contains the process type Third-Party which cannot be supported by the standard taxation solution. 

Note: In case, if the process type is To-Stock or Non-Stock, the expected Tax Country and the Tax Code will be determined based on activity Tax on Goods and Services.

Resolution

You can solve the issue by creating parameters for the external determination of incoming and outgoing tax events for product tax under the activity External Tax Determination for Goods and Services. Follow the below steps to configure the third-party tax elements.

  1. Go to the Business Configuration work center.
  2. Go to the Implementation Projects view & select Open Activity List.
  3. Navigate to Fine Tuning.
  4. Search for Activity - External Tax Determination for Goods and Services.
  5. Here you can maintain the below Tax Elements to determine the right Tax Country for Third-Party taxation or Drop Shipment Scenario.
    • Valid-for Country
    • Enforce country as tax country
    • Tax Event Direction
    • Define Valid From / Valid To
    • Tax Event
    • Third-Party Deal (Check box)
    • Under Tax Code Details, you can use, dedicated Tax Code also.
    • Or You can determine the product tax event based on Ship-From and Ship-To locations.
  6. Select Save and Close.

Keywords

KBA , SRD-CC , Cross Components , How To

Product

SAP BUSINESS BYDESIGN 1705 ; SAP BUSINESS BYDESIGN 1708