3659060 - Tax Country and/or Tax Code is different in Sales Order and Sales Order Invoice Request

The Tax Country/Region and/or Tax Code is different in Sales Order and the corresponding Sales Order Invoice Request.

You expect that they are both the same since Sales Order Invoice Request is based on that Sales Order.

SAP Business ByDesign

1. Go to the Sales Orders work center.
2. Select the Sales Orders view.
3. Open Sales Order XYZ (XYZ represents the Sales Order ID).
4. Navigate to the Items tab
5. Select the Line Item XX (XX represents the Line Item number).
6. Navigate to the Taxes sub tab.
7. The Tax Country/Region is AA (AA represents the Tax Country), the Tax Code is 123 (123 Represents the Tax Code) and the Automatic Tax Determination check box is checked.

1. Go to the Customer Invoicing work center.
2. Select the Invoice Requests view.
3. Select Sales Order Invoice Request XYZ
4. Click on the Edit button.
5. Navigate to the Items tab
6. Select the Line Item XX (XX represents the Line Item number).
7. Navigate to the Taxes sub tab.
8. The Tax Country/Region is BB (BB represents the Tax Country), the Tax Code is 456 (456 Represents the Tax Code) and the Automatic Tax Determination check box is checked.

A rule was created in the fine tuning activity External Tax Determination for Goods and Services that is using the parameter Bill-To.

As per our example:

1. Go to the Business Configuration work center.
2. Select the Overview view.
3. Open the fine tuning activity External Tax Determination for Goods and Services
4. Select the rule Z001 (Z001 represents the Configuration Item ID for the Rule
5. In the Valid for Country Region BB is maintained
6. The Enforce Country/Region as Tax Country/Region check box is active
7. The Tax Category is 1 - Product Tax and the Tax Event Direction is 1 – Outgoing
8. The Tax Date in the Sales Order for the item is within the valid from and valid to date of the rule.   
9. The Tax Event 789 (789 represents the tax event for tax code 456)
10.  In the Location Details amongst other parameters, the Bill-From is maintained as 1 - Single Country -> AA
11.  In the Tax Code Details the Use dedicated Tax Code check box is active and the Tax Code 456 is maintained.

When you check the parameter in the rule  Z001 and compare it to the details in the Sales Order XYZ, the rule does not apply because the Bill-From (Invoicing Unit) is not maintained in the Involved Parties tab of the Sales Order.

However, when you open the Sales Order Invoice Request, you can see that the Invoicing Unit is maintained and the location of the Party maintained as Invoicing Unit is in the Country AA.

This is the reason why the External Tax Determination rule Z001 is not determined in the Sales Order but it is determined in the Sales Order Invoice Request.

Since the Tax Country and the Tax Code is enforced in the rule Z001, the Tax Country and/or Tax Code is different in Sales Order and Sales Order Invoice Request

To solve the issue, you need to evaluate if the Tax Country and/or Tax Code should be determined via the External Tax Determination rule or via the standard Tax Determination in the system.

If the Tax Country and/or Tax Code should be determined in the Sales Order according to the External Tax Determination rule you have 2 options:

Option 1: you ensure that the Invoicing Unit is determined in the Sales Order

The Invoicing Unit can be activated in the Involved Parties for Sales Orders as follows:

1. Go to the Business Configuration work center.
2. Select the Implementation Projects view.
3. Select the implementation project.
4. Click on the Open Activity List button.
5. Go to the Fine – Tune step.
6. Show All Activities.
7. Select the fine-tuning activity Involved Parties for Sales Orders.
8. Click on the Add to Project button if the activity is not already added to the project.
9. Activate the party role Invoicing Unit and check the Mandatory checkbox.
10. Click on the Maintain Determinations button.
11. The required determination steps can be activated.
12. Click on Save and Close

The Invoicing Unit will then be determined in new Sales Orders. For existing Sales Orders you can add the Invoicing Unit manually in the Involved Parties tab.

Option 2:

You remove the Bill-From parameter in the External Tax Determination rule Z001

If the Tax Country and/or Tax Code should not be determined in the Sales Order Invoice Request according to the External Tax Determination you can deactivate the External Tax Determination rule Z001.

KBA 3599210 - The Tax Country is Different Between the Sales Order and the Invoice Request for Items.

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