3241244 - Tax reporting unit determination in Purchasing documents

You want to know how the Tax Reporting Unit (TRU) is determined in Purchasing documents.

SAP Business ByDesign

1. Go to Supplier invoicing work center
2. Go to Invoicing view
3. Search for Purchase order DEF(DEF refers to the Purchase order Id) 
4. Click on new invoice button
5. Go to Items then click on Taxes tab here
6. We can see below tax tab ,Tax country is India but Tax reporting units are not appearing

1. The Org unit is not a business residence thus cannot be considered as permanent establishment so not considered as TRU

 or

 2. The Org unit  that is expected to be TRU is not valid as on Invoice date of the invoice.

1.For materials, the system determines the TRU from the below options as per the below sequence 

• Ship-to location (will be considered only when Material tariff is maintained in product master data)
• Bill-to party
• Company
• Invoicing unit
• First available business residence under the company in organizational management.

 Only when above are marked as Business residence in organizational management they are considered if not system will look for next option in the above list.

Once system finds the above option then if they are not valid as on Invoice date of invoice then TRU in invoice will be empty, so you will have to extend the validity  of org unit and then create  new invoice or add new row in the invoice for system to redetermine the details as per new changes you did.

2.For services, the system determines the same way as mentioned above except the first option(Ship to location) is not applicable.

Multiple Tax Registration – India | SAP Help Portal

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