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Tax Jurisdiction Code and Tax code in SD

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Some SAP ERP users come accross several errors related to Tax while releasing billing documents to accounting.


Firstly it worth a review on the subject. There is a summary and mostly frequent notes about ERP SD Taxes.

 

SAP can process single level taxes like VAT (e.g:  MWST condition type) in Europe, South Africa and Australia)

and multi level taxes by jurisdictions (eg. state or city specific, US, Brazil, India)then UTXJ, UTXD, JR1, JR2, JR3

and JR4 are usually seen. In order to adjust the access sequences to the multi level taxes, jurisdiction codes are created to determine the local tax rate.

In conjunction with a tax code, a jurisdiction code determines the amount of tax (and is breakdown among

jurisdictions).

 

Jurisdiction codes are made up of multiple levels:

- State

- County

- City

   ...

 

 

 

The tax jurisdiction code is a key, which together with the tax code and other parameters, determines the tax amount and the way in which payment

of the entire tax amount is divided between different tax authorities.

 

Tax codes (not Tax Jurisdiction Codes) have to be informed in condition record (E.g: MWST, UTXD, JR1).

 

The country has a Tax procedure assigned in transaction OBBG (field T005-KALSM). If this Tax procedure

has entries in transaction OBCO (table TTXD), then the country is relevant for Tax jurisdiction .

 

 

Examples of standard Pricing Procedures in SD (V/08 tcode):

  RVAA01 - Standard

  RVAXUS - Standard USA / with Jur. ext.

  RVBRC - Brazil: Condition-Based Taxes

 

 

Examples of Tax Procedure (which is assigned to a country in OBGG tcode)

  TAXUSJ (US)

  TAXBRA (Brazil)

 

Jurisdiction codes are defined for key master records. For sales transactions, the jurisdiction code

is determined accordingly to customer and material indicators.

  See http://help.sap.com/saphelp_rc10/helpdata/en/af/3f89b69e6711d395da00a0c929f4c9/content.htm (customer)

  See http://help.sap.com/saphelp_rc10/helpdata/en/af/3f89bc9e6711d395da00a0c929f4c9/content.htm (material)

 

 

For example, a jurisdiction code using the TAXUSJ structure has nine characters with the first two denoting the state, the next three denoting the county or parish within the state and the last four denoting the city.

  Jurisdiction of the state of Pennsylvania - PA0000000

  Jurisdiction of the county of Allegheny - PA0010000

 

 

The ship-to party should have tax jurisdiction in master data. In case of export, and the ship-to party

has not tax jurisdiction, then a default should be set in transaction OBCL (see KBA 1672122).

 

The field VBRP-TXJCD is reserved when it is required Tax Jurisdiction Code. It is not possible to

entering manually a tax code in SD invoice document. Once determined it stays there, if you want

to update it is only possible by means of cancellation and invoicing again.

 

That tax determination can be done either externally by another company which communicates

to SAP by means of RFC or it is calculated internally. For internal calculation the transaction

FTXP is available in SAP ERP (Set Country Key, Tax Code, Tax Jurisdiction and Valid date), it is

FI-AR-AR related area.

 

Below follow relevant notes which are not bugfixes, but FAQ and Consulting ones:

 

2081169 Tax conditions with different tax codes with same amount summarized in header l

2016990 Export between United States and Canada

1988553 Cannot post document: tax base in local currency is zero - Message no. FF759 -

1915114 FF753 Tax code does not appear in any G/L account item

1911958 Tax jurisdiction for export billing documents with ship-to party outside of the

1845593 Error FF763 given in VF02

1672122 Error message FF799 when release SD invoice to accounting

1667415 Error message FF769 occurs when trying to release a billing document to account

1598661 Cash discount check for plant abroad

1508253 When to use WIA Invoice

1472505 Unexpected tax condition value in item of saved document or billing document.

1469906 FF805 Tax Statement Item missing for Tax Code

1462599 Change of purchase/sales tax rates in Spain

1370864 Restrictions for invoice correction(requests) II

1255945 Pure tax posting from SD

1085758 Plants abroad: Customizing for stock transfer between plants

1080399 Cash discount and tax jurisdiction

1071560 Mandatory condition for LCIT and LCFR

1032869 Tax determination in intercompany billing

1009170 Date of services rendered in credit memo process

979362 Tax increase in Germany from 1.1.2007

971515 FF 805: Error when reversing documents of Release < 4.6B

971253 Causes for error message FF805 in SD

953421 Using CBT the ICMI unit value is incorrect calculated

950355 Tax error in a return order refencing a preceding document

938856 Tax increase with billing plan

938150 Tax-relevant mapping of the EU triangular deal

911113 EU indicator '9' not only for acquisition tax

885717 Cash discount base formula does not consider plant abroad

882132 Plants abroad: Release notes, tax base, cash discount base

872449 Tax determination in Sales and Distribution

758296 Retrobilling: Redetermining VAT reg no for new EU members

748208 No VAT registr. no. f EU countries - supplement Note 158890

744437 Intercompany across countries - special cases

733924 Sales tax, transitional rules for accession countries

727124 VAT registration number of SP during manual change

713074 Plants abroad - Note 10560 case 1)

704629 SD for TAXB - Belgian tax table - special cases (22842)

693256 ISS retention by citycode

671647 Pricing procedure including tax

642008 Credit Memos for Documents created before note 102852

593672 Tax exemption license in Italy (2)

592689 Globalization Knowledge Base (GKB)

560285 Singapore: Goods & Services Tax (GST) Rate Change

536952 Turkish Excise Duty

528983 Warehouse transfer to non-EU countries

524256 Tax conditions 'not by percentage' (II)

517089 Taxes on sales/purchases deduction procedure

506588 Plants abroad: Customizing for stock transfer between plants

501355 Two taxes without tax trigger

498563 Tax determination w/ jurisdiction and service tax in Canada

446854 Bollo not for customers in tax-exempt cities

444040 KE no VAT registration/tax classification new

421284 Brazil: Tax complementar via SD sales order

400766 Changes in accounting interface for Release 4.6

395640 Canadian Taxes w. Jurisdictions in CRM

386826 Exempt transaction incorrectly returns taxes

381348 Using user exit, customer exit, VOFM in SD

371764 VAT registration number: Destination country

337657 Argentine fields not filled in billing after upgrade

303277 EU triangular deal: Error V1694

216861 Australian GST Conversion Requirement - Open Sales Orders

191932 Incorrect tax classifications in the SD document

184985 Tax conditions 'not by percentage'

174830 Mixed VAT rate on one product

158890 Requirements for the tax determination as of Release 4.0A

109005 Taxation processing for used parts

98299 Loc. BR (LSA): SD: Determination of tax laws

97722 Rounding for different tax codes

91109 VAT registration number of customer disappears

88283 Tax indicators of the ship-to party are missing

86358 An incorrect value-added tax is displayed

72040 Tax exemption licenses with condition technique

42737 Tax Condition table with Tax Code on entry screen

34526 Delivery free of charge and value-added tax

19195 License check and tax indicator

13467 Costing scheme including tax

1779 VAT could not be found

 

It is not easy to understand fully why unexpected behaviour/error messages related to Taxes happens in ERP SD. But take a time to read before sending a SAP Support Incident can save time.


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