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TaxjurisdictionERPSDSCNWiki
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ERPSD / / ERPSDTaxes

Taxjurisdiction
CreatedbyKellyYnoue,lastmodifiedonApr04,2016

Purpose
ThepurposeofthispageistoclarifythefunctionalityoftaxjurisdictioninSD.

Overview
InthefollowingsectionsyouwillfindinformationabouttheCustomizinginSDandFI,TaxdeterminationintheSalesdocumentandReleasingtoaccounting.

CustomizinginFIandSD
CustomizinginFI
SPRO>FinancialAccounting>FinancialAccountingGlobalsettings>TaxonSales/Purchases>Basicsettings
AccessSequences
DefineConditionTypes
DefineProcedures

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ThetaxproceduresaresimilartoSDpricingprocedures.TheycontainalltaxconditionsthatcouldappearintheSDdocument.
Examples:
TAXUS
TAXUSJ
TAXUSX

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TheTaxjurisdictionsarenecessaryincountriesweretheyareactivated.Technicallyspeaking:
ThecountryhasaTaxprocedureassignedintransactionOBBG(fieldT005KALSM)

IfthisTaxprocedurehasentriesintransactionOBCO(tableTTXD),thenthecountryisrelevantforTaxjurisdiction

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Itmeansthatsalesdocumentsraisedinthiscountryshouldhave:
1.Taxjurisdictionconditionsinpricingprocedure
2.Theshiptopartyshouldhavetaxjurisdictioninmasterdata.Incaseofexport,andtheshiptopartyhasnottaxjurisdiction,thenadefaultshouldbesetintransactionOBCL(seeKBA1672122)

CustomizinginSD
Thepricingproceduremustincludethetriggerconditionandthetaxconditions.Inthissample,inUS:triggerconditionUTXJ,taxconditionsJR1,JR2,JR3,JR4

Examples:
RVAJCAStandardCA/WithJur.Code\_taxjurisdictionvaluescalculatedinternallyfromFTXP
RVAJUSStandardUSA/WithJur.Code/

RVAXUDStandardUSA/withJur.ext.\_taxjurisdictionvaluescalculatedbyexternaltaxsystem(Vertex,Sabrix,Taxware,etc.)
RVAXUSStandardUSA/withJur.ext./

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Triggercondition
TriggerconditionisdefinedinV/06.
Thepurposeoftriggerconditionisonlytosetthetaxcode.ThetaxvaluewillbebuildbyconditionsJR1,JR2,JR3,JR4.

UTXJisthetriggerconditionusedinUS.Itiscalculatedonitemlevel.Inexternalcalculation(fromexternaltaxsystem)ithasvalueformula300assignedthepricingprocedure.Itistriggeredinfunction
Pricing.

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TriggerconditionsUTXDandUTXEareusedinexternaltaxcalculation.Bothconditionsmustbeusedtogetherinthepricingprocedure(fortechnicalreasons).ConditionUTXDhasvalueformula500and
conditionUTXEhasvalueformula501.TheyaretriggeredonlybyFMPRICING_COMPLETE.TheRFCiscalledonlyonceperdocument.ThisiscalledtheMaxTaxprocedure(developedbyFI),anditis
supposedtobefaster.

Taxjurisdictionconditions
TaxjurisdictionconditionsJR1,JR2,JR3,JR4mustbedefinedbothinSDandinFI.
InSDtheconditionJR1doesnothaveaccesssequence.TheamountsofconditionscomefromFI.

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Determinationoftheamountsinasalesdocument
1.TaxjurisdictioncodeiscopiedfromtheshiptopartyorfromOBCL
2.TaxjurisdictionconditionsareincludedinxkomvinformXKOMV_AUFBAUEN_STEUERN
3.Thesystemdeterminesthetaxjurisdictionamounts
fromFTXP(incaseofinternalcalculation)
fromvalueformula300or500(incaseofexternalcalculation)

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RelevantsourcecodeinPricing

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NotethatafterXKOMV_AUFBAUEN_STEUERN(LV61AA57),thebasevalueandconditionvaluearenotdeterminedyet.

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Theamount,basevalueandconditionvaluearedeterminedinXKOMV_BEWERTEN.

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InsideXKOMV_BEWERTEN,thesystemdeterminesthetaxjurisdictionamounts
fromFTXP(incaseofinternalcalculation)
fromvalueformula300or500(incaseofexternalcalculation)

Internalcalculation

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ExternalCalculation
Formula300(FV64A300)isexecutedatitemlevel.
Formula500(FV64A500)isexecutedatheaderlevel(Header>Conditions)intheMaxTaxprocedure.
TheRFCisonlytriggeredbyvalueformula300or500.Thevalueformulas301,302,etc.onlyretrievevaluesfromtheresultsdeterminedbyformulas300and500.
Obs.:Forexternaltaxcalculationitisrecommendedthattherateismaintainedas100%inFTXP.
Debug:
1.Checkwhatisthevalueformulaassignedtotherelevanttaxjurisdictioncondition.Forexample,taxjurisdictionconditionXR1isassignedtovalueformula301(FV64A301)inthepricingprocedure.
2.Setabreakpointinthestatementcallfunction'GET_TAX_RESULTS_FOR_301_306
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3.CreatetheSDdocumentorupdatethepricingwithpricingtypeG(whichredeterminesthetaxconditions),forexample.
4.Checkthecallstack.ThevaluesreturnedbyGET_TAX_RESULTS_FOR_301_306areonlyeffectivewhenthevalueformula(FV64A301inthisexample)iscalledbyform
XKOMV_KWERT_ERMITTELN.

Anotherwaytodebug:
1.SE24
2.ClassCL_XTAX_RULES_RFC,MethodRFC_CALCULATE_TAXES_DOC
3.SetaBreakpointatcallfunction'RFC_CALCULATE_TAXES_DOC'

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Ifconditioncontrol(technicalfieldKSTEU)isForH,theexternaltaxsystemisNOTcalled.
Note1043372changesKSTEUinthebaseformulasothattheexternaltaxsystemcouldbecalled.

ReleasingtoAccounting

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CloserlookaterrormessageFF805
SetawatchpointwheretheerrormessageisissuedandcheckstructuresBSEGandBSET.
InFI,BSEGcontainslineitemsandBSETcontainsthetaxlines.Ifthisstructuredoesnotcontainataxline,itiseitherbecausetheconditionhasbasevaluezerooriscompletelymissinginSD.
Thereisanote(1255945)abouthowtocreatepuretaxdocumentsbutitisvery,veryrare.ThisnoteclearsxautoinSDandforwardtoFI.Ifxautoiscleared,theFIchecksarenotperformed.
WecouldalsocheckXACCITwhenAC_DOCUMENT_CREATEiscalled.
Relevantfields:

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TAXITifitisataxline.
TXJCD(differentperlevel),TXJDP(thegeneric),TXJLV(thelevel)
XACCCRFWBAScontainsthebasevalue.
Obs.1:thetriggerconditionisneveraddedtoXACCIT
Obs.2:theaccountdeterminationfortaxconditionsisperformedinFI
ExampleofXACCITpassedtoFIwithTaxjurisdiction:

ExportcaseswithTaxJurisdiction
Thestandardsystembehaviorregardingthetaxjurisdictioncodeforexportcaseshasbeenchangedwiththefollowingnotes:
1628962Exportwithinvalidtaxjurisdiction
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1768395Exportwithinvalidtaxjurisdiction(1)
1809374Exportwithinvalidtaxjurisdiction(2)
1899214Exportwithinvalidtaxjurisdiction(3)
2016058Exportwithinvalidtaxjurisdiction(4)
2095331Exportwithinvalidtaxjurisdiction(5)
Afterallthesenotesareimplemented(viaSNOTEordeliveredinSupportPackage),thedefaulttaxjurisdictioncodefromOBCLisusedinallexportcases(insteadoftheshiptopartytaxjurisdictioncode)
asaresultofthecorrections.
Thisdataistransferedtotheinterfacefortheexternaltaxsystem.Withinthisinterfaceitisdecidedthatforthisdefaulttaxjurisdictioncode,nocalltotheexternaltaxsystemisneededasthisbusiness
wouldalwaysleadtoazeropercentagerate.
Incaseanotherbehaviorispreferred(tonotusethisdefaulttaxjurisdictioncodefortheseexportprocesses)thenyoucoulduseprogramMV45AFZZfortheorderprocessandprogramRV60AFZZforthe
invoiceprocess(FORMUSEREXIT_PRICING_PREPARE_TKOMK.)HereyoucouldoverwritetheTKOMKTXJCDwithKUWEVTXJCD(theonefromtheshiptopartner)forexports.ConsultingNote
2016990hasanexampleofthismodificationforexportcasesbetweenUSandCanada.ConsiderSAPNotes83020and381348inthisregard.

RelatedContent
RelatedSAPNotes
SAPNote392696:R/3TaxInterfaceConfigurationGuide
SAPNote1899214:Exportwithinvalidtaxjurisdiction(3)
SAPNote419124:Exportbillingdocumentwithtaxjurisdictions

tax

jurisdiction

obbg

obco

ftxp
jr1

external
jr2

jr3

jr4

sabrix
xr1

taxware

vertex

xr2

xr4

xr3

export
xr5

xr6

usa

canada

brazil

trigger

xkomv_aufbauen_steuern

txjcd

utxd

utxe

maxtax

utxj

obcl

taxusj

taxusx

get_tax_results_for_301_306

rfc_calculate_taxes_doc

ksteu

5Comments

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ChandanRoyChoudhury

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HiKelly,
WeinourprojecthavearequirementfromclienttoreplacevertexwithinternalSAPR/3configurationastheydontwanttocontinuewithvertexbecauseofcostandminimalbusinessin
US,Canda.
Nowwhilesearchingtheconfigguide+developmentrequired(ifany)Icouldnotfindaspecificguidefor
requiredIMGstepsandotherstoset
upinternaltaxjurisdictionforSD/MM/FItransactions(withoutusing
externaltaxsoftware"
CanyouconfirmmewhetheryourwikiwouldcovertheMMpartaswellfordeterminationoftaxrateusingjurisdictionsinUSandCanadawithoutusingvertexOR,itsonlythewikiisapplicable
forFI+SDsetup.IfnotisthereanydocforMMpart?
Ialsohavesomeopenpointsifyoucanaddress:
1.ForCostCenterPOhowtomaintaintheTAXRatethroughconditionrecord?Initiallywewerethinkingwhetherweshouldusematerial+jurisdictioncode(negativepointonthisiscostcentre
basedPOwonthavematmaster)combination
or,Vendor+jurisdictioncodecombination

2.HowtoidentifytheTAXRateaswefoundandalsoyouconcurredthatinUSthetaxrateisvaryingwithdifferentcombinationsfromregiontoregion(e.fCalifornia)howtohandlethis
dynamiccombinationforfetchingtaxrate.
Alsowebelievefor'same'juridctioncodebutfordifferentpostalcodestaxratesvaryinUS?howdowehandle(SETUP)thatinECC

3.IncaseofstandardSAPPOdefaultstheplantjurisdictioncodeinsteadofvendormasterjurisdictioncode.Wearenotsurewhethertaxderivationshouldalwaysbebasedonvendor
jurisdictioncodeifyes,thenhowdefaultingtovendorjurcodecanbedone?
a.sowearenotsureifthisalwaysbevendorjurisdictioncodeand
b.ifyesthenhowtodefaultthis,isthereanyuserexitor,customizationknown?

4.AsweknowinECCwewouldhavetomaintainconditionrecordwithratefor'All'jurisdictioncodesthatcurrentlypresentinvertexSowearethinkingisthereanywaytomaintaininbulk/
uplaodthanmaintainingmanuallyonebyoneasthiswouldbeatedioustask.

5.Shouldweuse'TAXUSJ'onlyastaxprocedureinECCforreplacementofvertexor,acustomtaxprocedurewouldhavetobecreated.

6.inUStehjurisdictioncodesareof10charbutinECCstandardinTAXUSJits9char?shouldweuse10charonlybysettingupasbelow:
ThemaindifferencebetweentheTaxJurisdictionCodebetweenthestandardandVertexisforStdUSTaxjurisdictioncodeconsistsof9digits
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CountyCode(2)+Statecode(3)+ZIPCode(4)

whereasforVertexthereisanextradigitdenotingCity/Townattheendi.e.10digits.

Thiscanbemanuallyoverriddenbymakingit0.

7.howwillthetaxratechangesupdatewillhappenaftergolive?isthereawaytoautomate?

8.manualmaintenanceinECCforinitialanddelta,
ineithercaseisthereanyupload/autochangepossible?

Regards,
ChandanRoyChoudhury

atulkumbhani
Averywellwrittenarticle.GreatJob!

AdrianoSommerlatte
Excellentdetailedexplanation,KellyYnoue.Welldone.
Question:DYKwhetherSAPreleasedanyenhancementforCustomerandmaterialtaxclassificationonintercompanybilling?Note10560statesnoUserExitexistedbythen...
"customerormaterialtaxclassificationtobedeterminedwithCountryofShiptoinsteadofCountryofDeparture...modificationintheprogramsFV45PFAPandFV45PF0M.Nouserexitexists
hereyet."...Note:10560.
Thankyou.

AlexanderLim
Thanksfortheusefuldocumentation,thisisexactlywhatpeoplearelookingfor.
Notthetheoreticalarticle,buthighvaluetechnicalarticle.

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TusharKarwa
Excellentarticle!veryhelpful

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