SAP Knowledge Base Article - Public

2540426 - Tax Jurisdiction is not Determined Correctly on a Sales Document

Symptom

When creating a Sales Document (Sales Quote or Sales Order) XYZ (where XYZ represents the Sales Order/Sales Quote ID), the system is determining a different Tax Jurisdiction than the one maintained in the Account FGH (where FGH represents the Account ID).

Environment

SAP Business Bydesign

Reproducing the Issue

  1. Go to Sales Order Work Center.
  2. Under common tasks, select New Sales Order.
  3. Select View All.
  4. In the General tab, enter the Account ID FGH.
  5. Navigate to the Items tab.
  6. In the Product ID field, enter the Product ID ABC (where ABC represents the Product ID).
  7. Select Taxes sub tab.

The system determines the wrong Tax Jurisdiction.

Cause

The tax jurisdiction is determined based on the settings maintained in the Business Configuration activity Tax on goods and services under Tax jurisdiction determination rules depending on the Origination or destination based taxation.

Resolution

To change the behavior in order to fit in the desired business process, the follow steps can be performed:

  1. Go to Business Configuration Work Center.
  2. Go to the Overview View.
  3. Search for Tax on Goods and Services - US activity.
  4. Select the Define Tax Jurisdiction Determination Rules hyperlink.
  5. For the specific state, Origination Taxation checkbox should be selected.

This configuration can be changed afterwards if required.

Keywords

Tax Jurisdiction, US, Sales Order, Tax on Goods and Services - US, Account, Origination , KBA , AP-TTE-TC , Tax Calculation , SRD-CRM-ORD , Orders & Contracts , How To

Product

SAP Business ByDesign all versions