3130828 - WS 533 -Tax code via price determination cannot be determined message raised Settlement Management in SAP S/4HANA Cloud

This document provides information on how the tax code is being determined for settlement document items in SAP S/4HANA Cloud for any processes, which involves Condition Contract Settlement (CCS) and aims to provide help to understand and avoid tax code-related errors (e.g. WS533) in the settlement program.

***Please consider that this document is only relevant for SAP S/4HANA Cloud and contains examples from the standard delivered content for the country Germany (DE). Depending on the relevant country/region the standard delivered content can differ. Please consider that all the mentioned examples in the document are only references!***

Settlement Management in SAP S/4HANA Cloud

Relevant scope items:

• Sales Rebate Processing (1B6)
• Purchasing Rebate Processing (2R7)
• Sales Commissions - External Sales Representative (2TT)
• Royalties Settlement for Sales (55I)

Incorrect/missing configuration.

In CCS scenarios, where the settlement document is created in the background, the tax codes are not entered manually but determined automatically in the pricing. For this automatic determination, the pricing tries to search for a tax code for the tax condition type from the calculation schema of the settlement document. It has to be ensured that the pricing can find a valid condition record for the tax condition type, and is able to determine a tax code from it. Below you can find an overview of the details about content and how the logic works.

 

Generic information from Pricing side 

The pricing procedures delivered as part of the standard content contain a relevant tax or tax trigger condition in case the scenario is tax relevant. (Please consider that the Delta Accruals are generally not applicable for tax). In the content of this tax or tax trigger condition type, an access sequence is assigned, which can be used by the system to search for condition records. In the access sequence, that (those) access(es) is maintained, which would be used for the condition record search. The system will search a condition record for the tax condition type, which is valid on the posting date of the settlement. It has to be ensured that the system can find a condition record (for the reference condition type if applicable), which contains a tax code (for the reference condition type, if applicable), that can be passed by pricing during the settlement.

An example from the standard delivered content in S/4HANA Cloud for the scope item Sales Rebate Processing (1B6) for the country DE (Germany), for tax condition type RETX (for which access sequence RET1 is used) on the sales side:

Tax condition type RETX has reference condition type TTX1 and has access sequence RET1 assigned to it. In the standard content for condition type TTX1, access sequence TTX1 is assigned. The two access sequences (RET1 and TTX1) have one access in common, called Domestic taxes, which contain the following access fields:

Technical name of the condition	Field description
ALAND	Departure Country/Region
TAXK1	Tax Classification 1-Customer
TAXM1	Tax Classification Material

 

An example from the standard delivered content in S/4HANA Cloud for the scope item Sales Commissions - External Sales Representative (2TT) for the country DE (Germany), for tax trigger condition type RCTT (for which access sequence RET3 is used) on the sales side:

Tax condition type RCTT has reference condition type RET0 (on procurement side) and has access sequence RET3 assigned to it. In the standard content, for condition type RET0, access sequence RET1 is assigned on procurement side. The two access sequences (RET3 and RET1) have one access in common, called Settlement Input Tax, which contain the following access fields:

Technical name of the condition	Field description
ALAND	Departure Country/Region
LLAND	Destination Country/Region
TAXIM	Tax indicator for material

 

Based on the above information, during a settlement the program will only be able to determine a tax code for the settlement document item, if a condition record with a valid tax code exists for the reference condition type. The condition record has to be valid on the posting date of the settlement.

 

General logic for the Tax Classification for the Customer and the Material

• Logic for Tax Classification 1-Customer

For the 'Tax Classification 1-Customer' in case of a Customer role, the data will be overtaken from the Business Partner Master Data, in case this is not applicable the Pricing will not be able to determine a valid tax code. In case the relevant Business Partner is a Supplier the 'Tax Classification 1-Customer' will be set by default to the value 1, as the Business Partner Master Data for the Supplier role does not include this information.

• Tax Classification Material 

By default the 'Tax Classification Material' the value will be set to 1. Please consider that this logic can be overruled by localization specific settings based on special or legal requirements, in such cases you may consider contacting your localization expert of the relevant country/region if you need any further details.

Additionally there is a possibility to overrule this value (regardless if it coming from the default or the localization specific content) according to any customer specific requirements using the process variant, which can be configured in the Self-Service UI in the Manage Your Solution App (F1241). For details please refer to the test scripts of the relevant scope item and country/region. The available values depend on each localization content. Please also consider that in such cases it is the customer's responsibility to ensure that a relevant condition record can be found for this combination as well, in order to have a valid tax code determined.

 

Special requirements

Please consider that in case the standard delivered content does not fit your requirement (for example you wish to have a scenario where you are using different tax departure and destination country/region) there is a possibility to create your own condition records according to your requirements as Pricing or Tax Specialist. The below table shows such an example:

Technical name of the condition	Field description	Value
ALAND	Departure Country/Region	DE
LLAND	Destination Country/Region	US
TAXIM	Tax indicator for material	1

 

Please consider that the additional combinations should be defined for the corresponding reference condition types. For scope item Sales Rebate Processing (1B6) based on the above example new record could be defined on sales side for the reference condition type TTX1. While for the scope item Sales Commissions - External Sales Representative (2TT) new condition record could be defined on the reference condition type RET0 on procurement side.

Depending which countries/regions you are referring, you might need to explicitly activate the relevant country/region in your system for further details on the consequences you may consider contacting your localization expert. Please also consider that in such cases it is the customer's responsibility to ensure that a relevant condition record can be found for this combination as well, in order to have a valid tax code determined. In case you require any further assistance how the additional condition records should be set up for your business processes / special requirements, please contact your consultant or project partner.

, KBA , LO-GT-CCS , Condition Contract Settlement , LO-AB , Settlement Management , LO-GT-CHB , Condition Contract Maintenance , How To

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