Need to change sales tax from point of sale to point of delivery

[laurie_mcginley]

Hi all,

Recently the tax laws were changed such that sales tax is to be collected based on where the product will be delivered to (rather then where the product was sold from).

Briefly we are an agency with mulitiple divisions, and within those divisions several sales offices. Previously, a sales would be made from the sales office, and based on the tax rate for that division and sales office (county/city) the sales tax would be calculated.

Now we need to shift that so that a sales can still be made from a division/sales office, but the collected tax is based on where the product will be delivered to.

I'm sure there is a way to set this up, but I'm at a loss as to where to start.

One of teh options the customer suggested was to have a sales area set up with all the cities and tax codes in it. Then assign that sales area to each of the sales offices. Is this possible? Or do you have to have a separate sales area for each sales office?

I'm open to any suggestions you may have as I'm not very familiar with this side of SAP (sales distription and taxes).

Thanks in advance for your thoughts!

Laurie

[Former Member · Accepted solution]

Laurie, OSS Note 21734 explains it.

Option 4 is the one for you !

[laurie_mcginley · Accepted solution]

Thanks Bill. As it turns out, we are in the US where jurisdiction is an option I guess so this procedure may not be needed. As I dig further it appears we are currently setup to use TAXUS procedure which utilizes tax codes - a limited number. But since the recent change, we may need to switch to TAXUSJ.

Does this ring a bell for anyone? If it is what we need to do, what need I be aware of that will change in the rest of the system?

Thanks for your answers so far!

Laurie

[Lakshmipathi]

Dear Laurie

The standard SAP feature is that tax will be determined from the origin point to destination point ie.based on the combination of place from where the material is despatched to the place where the material is consigned to.

thanks

G. Lakshmipathi

[laurie_mcginley]

That is how we are currently setup. - sales tax based on origin. But the law changed and we must now collect tax based on the ship-to point. Is there a way to setup a customer with a jurisdiction that will give the correct tax rate? And how then would that override the tax rate calculated from point of origin? It seems to me that lots of companies would do that particularly if they do web sales, where tax is based on the location of the person purchasing an item, not where the company is located.

Thanks

Laurie