SAP Knowledge Base Article - Public

3375049 - External Tax Determination For Goods and Services is Not Working as Expected in Intercompany Scenario


You have created a Purchase Order and noticed that the External Tax Determination is incorrect. 


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Reproducing the Issue

  1. Go to the Purchase Requests and Orders Work Center.
  2. Select the Purchase Orders view.
  3. Select all Purchase Orders, find "XXX" (where XXX is the Purchase Order ID).
  4. Press Edit.
  5. Switch to tab items
  6. Select the subtab taxes. 

For example you can see that the Tax Code is 2 - Domestic Acquisition (Standard Rate) which is not as expected. Expected would be 14 - Non-Taxable Purchase Within Tax Reporting Group since it is an internal supplier (Own Company fullfills the Sales Order). 


Both External Partners are for example in Germany and fulfill worldwide but there is no option to differentiate between them, the fields in the Business Configuration Activity are equal and you do not see an option to combine both scenarios.

You want to differentiate between:

  • Own Company External Fulfillment (Third-Party Scenario) 
  • External Supplier External Fulfillment (Third-Party combined with Intercompany Scenario)

In the Business Configuration Activity External Tax Determination the scenarios Third-Party and Intercompany cannot be combined. You can tick the checkbox "Third-Party Deal" or leave it empty. However you cannot add the Intercompany scenario to the Third-Party scenario. 


This is the expected system behavior. 


external tax determination, third party, third-party, intercompany, external fulfillment, internal fulfillment, own company, supplier, purchase order , KBA , AP-TTE-XTC , External Tax Calculation , Problem


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