2960382 - Warning: Check tax codes; taxation for chain transaction may apply

The warning message is triggered when working on documents such as Purchase Orders, Supplier Invoices, Sales Orders or Customer Invoices. 

SAP Business ByDesign

1. Go to Supplier Invoicing work center.
2. Go to Invoice Entry view.
3. Search for ABC (ABC is the purchase order's ID). 
4. 4. Click in New Invoice button.

Warning message is triggered:

• Check tax codes; taxation for chain transaction may apply

When there are three or more entities involved in the document, such as Company, Supplier and Customer, this warning message may be triggered. 

There are two possible scenarios: 

Scenario 1 - In the Supplier invoice or the Purchase Order, the General Tax Country is based on the Delivery Address.

So either of the below is true:

1. The Purchase Order was created from a Sales Order;
2. There are both Customer and Recipient maintained in it. 

If the Delivery Address is not maintained manually, then the Recipient or Customer fields determine the Ship-To field details. For Purchase Orders, those fields can be seen in Items tab > Delivery subtab in the item. For Supplier Invoices, it can be seen in the Items tab > Parties and Locations subtab. 

Scenario 2 - In the Customer Invoice or in the Sales Order, the General Tax Country is based on Ship-From address.

Note: This has an impact on the Country where the taxes have to be paid. In the following processes, the system supports the user by displaying warning messages and triggering a check of the tax codes. 

There could be business scenarios where the user may want to change the Tax Country or the Tax Code itself. Hence this warning message appears.

• Help Portal: Third-Party Order Processing Taxation

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