2891848 - Wrong Tax Country In Purchase Order or Supplier Invoice

You see a wrong Tax Code or wrong Tax Event appearing in the Purchase Order or Supplier Invoice.

SAP Business ByDesign

1. Go to Supplier Invoicing work center.
2. Go to Invoices and Credit Memos view.
3. Search for ABC (ABC is the invoice's ID). 
4. Click in Edit button. 
5. Navigate to Items tab.
6. Navigate to Taxes subtab.
7. You can see that incorrect tax code when the Automatic tax code determined check mark is there.

or

1. Go to Purchase Requests and Orders work center.
2. Go to Purchase Orders view.
3. Search for XYZ (XYZ is the order's ID). 
4. Click in Edit button. 
5. Navigate to Items tab. 
6. Navigate to Taxes subtab. 
7. You can see that incorrect tax code when the Automatic tax code determined check mark is there.

The Tax Country field is used to determine the Country for tax reporting purposes when making acquisitions. It is not intended to show the specific country of the supplier, but rather the country where the purchase is being triggered. The tax country of a Purchase Order or Supplier Invoice is determined based on the following details, listed in order of priority:

1. Country manually updated under the delivery address;
2. Site;
3. Ship-to;
4. Recipient (only applicable for non-stock or third-party items);  
5. Company address.

The tax country is then used to determine the Tax Event, and once the Tax Code is determined, the Tax Country appearing under the Taxes tab controls the list of taxes available in the dropdown under the Tax Code field.

Note:

• If a value is provided for the Recipient, the Delivery Address is copied from the Workplace Contact Data of the Employee Master Data;
• If a value is provided for the Ship-to/Service Location, the Delivery Address is copied from the Site Address of the Supply Chain Design Master Data - Locations;
• If values are entered for both Recipient and Ship-to/Service Location in a Purchase Order, the Delivery Address from the Ship-to/Service Location is selected.

Please maintain the correct details. In case of a Purchase Order, maintain it in the Delivery subtab under Items tab. In case of a Supplier Invoice, maintain it in the Parties and Locations subtab under Items tab.

• KBA: 2763883 - Incorrect Tax Code and Tax Country Defaulted in Supplier Invoice for Service Item

Tax Country; Tax Code; Purchase Order; Supplier Invoice; Supplier; Recipient; Ship-to; Address; Site; Company , KBA , AP-POP-PO , Purchase Order , AP-SIP-SIV , Supplier Invoice , How To