3476392 - Incorrect Tax Country Determination for Suppliers from Canada

Symptom

Incorrect Tax Country Determination for Suppliers from Canada
In the sales order, the line items are configured for external fulfillment set, and tax determination is handled automatically without any manual adjustments.
When the supplier is from Canada (CA), the system assigns CA as the tax country.
However, when the supplier is from other countries, such as the United States, United Kingdom, or China, the system correctly determines DE (Germany) as the tax country. The same behavior is expected for suppliers from Canada.

Environment

SAP Business ByDesign

Reproducing the Issue

Go to the Sales Orders work center.
Go to the Sales Orders view.
Select the respective Sales Order and select Edit.
Choose the View All button.
Navigate to the Items tab and select the Taxes subtab.
When the supplier is from Canada, the system automatically determines the tax country as CA, while the expectation is for it to be derived as Germany (DE).

Cause

CA is being incorrectly determined due to external fulfillment scenario and the relevant configuration has to be maintained.

Resolution

To ensure the correct tax code and tax country are determined, create a configuration in external tax code determination with parameters as in the sales order.

If Germany (DE) should be determined as the tax country, a configuration must be set up for Germany with the appropriate parameters.

CA is being incorrectly determined due to the external fulfillment scenario, and this should be adjusted accordingly.

Keywords

Tax Country, Incorrect, Canada, CA, Germany, DE, Sales Order, Taxes. , KBA , AP-TTE-TC , Tax Calculation , Problem

Product

SAP Business ByDesign all versions