SAP Knowledge Base Article - Public

2770419 - Exemption related Tax code is not determined in the Purchase Order

Symptom

Tax exemption though maintained in Product master data, system is not considering it while determining tax code in the Purchase order, hence you see wrong tax code in purchase order.

Environment

SAP Business ByDesign

Reproducing the Issue

  1. Go to Purchase Requests and Orders work center
  2. Go to Purchase Orders
  3. Search for respective Purchase Order and click on edit
  4. Go to Items tab
  5. Navigate to Taxes tab

You will see a different tax code other than what you expected as per exemption that you maintained in Product master data.

Cause

The region/ province of the Ship to party address /recipient address in Purchase order/ invoice is taken in to consideration for tax determination, so system searches for the exemption details you maintained in the product master for the respective region/province. If not found system does not consider the exemption reason.

Resolution

  1. Go to Product Portfolio work center
  2. Go to Products view
  3. Search for the respective Product
  4. Go to Taxes tab
  5. Click on Add row and enter all details and ensure you choose Region/Province that appears in the Ship to address/ Recipient address of the Purchase order or Supplier invoice
  6. Click on save

See Also

Case document:2774426 - Exemption related Tax code is not determined in the Purchase Order

Keywords

Wrong tax code , exemption reason not considered, tax code determined in Purchase order is wrong,correct tax code not determined. , KBA , AP-POP-PO , Purchase Order , Problem

Product

SAP Business ByDesign all versions