3502147 - Tax Exemption is not Picked up by the system while creating a Supplier Invoice

Tax exemption is maintained in the Supplier master data level, still the tax exemption is not picked up by the system automatically while creating the Supplier Invoice for a Supplier who is tax exempted in the its master data level. 

SAP Business ByDesign 

1. Go to Supplier Invoicing work center 
2. Go to Invoices and Credit memos view 
3. Search for Invoice and go to taxes tab
4. We see the tax exemption is not picked up in the invoice automatically 

Supplier master data level tax deductions cannot be achieved as per the current system design. Tax deductions must be maintained in Product level master data, in order to pick the deductions in the Supplier Invoice creation. 

The possible solution which we would like to suggest is as below : 

If the purchase involves a foreign country (ship to address or Supplier address), the Tax exemptions need to be maintained

• either in the Product Master Data.
• or in the Supplier Invoice by changing the Tax code manually.

If you feel it is important to maintain the tax determination at the supplier master data level, kindly put up your query as a new requirement in the customer influence forum.

Influence forum: https://influence.sap.com/sap/ino/#/campaign/886

KBA : 2520832 - Tax Exemption from Supplier Master Data not Applied in Purchase order or Supplier invoice 

Tax exemption not picked, supplier level tax exemption , KBA , SRD-SRM-SI , Supplier Invoicing , Problem