The tax calculated is incorrect for a service product if the Ship-to party is the Contact of Account.
Note: This case document deals with the EU specific tax scenario.
SAP Business ByDesign
Reproducing the Issue
- Go to the Sales Orders work center.
- Select New Sales Order from Common Task.
- Add the account ABC in the sales order (ABC represents the ID of the account).
- Add ship-to party XYZ (XYZ is the contact maintained under account ABC).
- Go to the Items tab of the sales order and add a service DEF (DEF represents the ID of the service).
- Select the Taxes subtab.
- The tax calculated is for the Ship-to country.
- If you change the ship-to party from the contact XYZ to account ABC then the tax determined for the ship-to country.
However, since both contact and account belong to same country, you expect same tax determination while keeping any of them as ship-to.
The tax determination logic in the system differs if a ship-to party is not a company:
- If you select contact XYZ as ship-to, then the condition Is Service Recipient is company? becomes False -> hence the tax is determined for domestic country.
- If you select account ABC as ship-to, then the condition Is Service Recipient is company? becomes True -> hence the tax is determined as EU sale of services, reverse charge which determines ship-to country as tax country.
This is the expected behavior of SAP Business ByDesign.
Tax Code; Service Recipient; Ship-To; Person; Company; Employee; 504; 540; EU Sale of Services; RevCharge; Domestic Sale of Services; VAT Exempt Art 7 , KBA , service , tax code , ship-to , person , company , AP-SLO-SO , Sales Order , SRD-CRM-ORD , Orders & Contracts , How To