3729103 - External Tax Rate Determination is Enabled in New Sales Orders Despite Scoping Being Disabled

• The External Tax Rate Determination checkbox is automatically selected when creating a new Sales Order.
• This occurs even though the scoping element “External Tax Determination for Goods and Services” is not in scope.

After removing the scope question, the expectation is that the External Tax Rate Determination option would no longer be available or visible in newly created Sales Orders. However, the system continues to display this functionality in the new document screen.

SAP Business Bydesign.

1. Go to Work center Sales Orders.

2. Select Sales Orders View.

3. Click on New -> Sales Order.

4. Give Account Details and Add Item under Items tab.

Under Taxes subtab, you can see the External Tax Rate Determination is checked

Check the respective Scoping Question,

1. Go to Business Configuration Work center.

2. Select Overview View.

3. Search for External Tax Determination for Goods and Services.

You can see the Scoping Element is Not in Scope.

• The reason why the External Tax Rate Determination checkbox will be checked when creating a Sales Order even though the scoping element External Tax Determination for Goods and Services is not in scope is because the scoping element Tax Calculation for US with Avalara or the scoping element Tax Calculation for US with Vertex is in scope.
   

The Avalara or Vertex integration is an integration to an external service provider (Avalara or Vertex) that provides Tax Rates for the US.

• Therefore, if you create a Sales Order for the Tax Country US, the External Tax Rate Determination checkbox will be checked since the Tax Type, Tax Rate etc. is provided by the external service provider Avalara or Vertex.

You can find the scoping questions for Avalara and Vertex as follows:

1. Go to the Business Configuration Work center.

2. Select the Implementation View.

3. Select the Project and click on Edit Project Scope.

4. Go to the Questions tab.

5. Expand Built-in Services and Support

6. Select Tax Calculation under Business Environment

7. Under Questions for Tax Calculation, under Group: US Tax on Goods and Services Calculation you can see the following questions:

Do you want to use the services provided by Vertex to determine tax rates for US?

Do you want to use the services provided by Avalara to determine tax rates for US?

This is the expected system behaviour.

External Tax Rate Determination; Sales Order; Scoping; Avalara , KBA , SRD-CRM-ORD , Orders & Contracts , How To