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US/CANADA Tax issue

Hi Team,

We are working on CANADA Tax Calculation in US Company code for Canadian customer; we are struggling to implement this process as we have Jurisdiction inconsistence between two countries,

I am going to explain the Business process and what we were implemented and what we are expecting , we need your assistance to implement this process as Tax is more sensitive as well we are trying to implement hybrid process , we would like ensure that no impact due this process implementation

Business Process:-

Company Code: - 1111 (US Company Code)

Sales Org u2013 2114 (Canada Sales Org)

US Plant: - 2110

Canada Plant: - 2114

Customer (Canada):- 10083773

Process: 1 Direct Sale from US Plant 2110 to Customer (Ship to Party) - 10083773 (Canada)

Process: 2 Sale from Canada Plant 2114 to Canadian Customer u2013 10083773.

Requirement: - for the above two scenariou2019s will applied local taxed in Canada (PST and HST)

(PST: Provincial Sales tax and HST : Harmonized Sales tax). System should pick the tax code C4 from TAXCAJ procedure.

Issue: - When we try to release SD Billing document to Accounting document, there we are getting jurisdiction error by conflict the US Jurisdiction code and Canada Jurisdiction code. The issue is that SAP is not picking the tax code C4 from TAXCAJ procedure and its picking from TAXUSX.

Implemented: -

1. We created a new sales org for Canada u2013 2114; This will be used for all domestic Canada sales.

2. we implemented NOTE: -


, here we changed the country to pick from Sales Org

3. Created Tax code C4 in US tax procedure as well as Canadian tax procedure.

Jurisdiction Code flow: - Billing document populates the tax jurisdiction code from the customer master (Canada) of the ship-to party to the billing document item. If you post the billing document to accounting, the system transfers this tax Jurisdiction code to the tax data in the BSET (Tax line in accounting document) table but this table will try to get populate tax jurisdiction as per the accounting document and accounting document link with US TAX Procedure

US tax Jurisdiction Code different than Canada Tax jurisdiction code, moreover here we are using AVP external Tax system for US, we need to check impact from AVP side

Jurisdiction Code in Canada Customer Master

Error:-

Tax statement item missing for tax code AA

Jurisdiction Code Structure for US and Canada

Table TTXD ( Structure of Jurisdiction code) , in SD Invoice Jurisdiction code will pick from customer master as per CANADA Structure, program will try fill the same data in Table BSET and BSET will try to validate company country Jurisdiction code structure

Jurisdiction Structure:-

TAXUSX Jurisdiction Length is 9 Digit

TAXCAJ Jurisdiction length is 4 Digit

Risk: - Our process will work by synchronizing the Tax jurisdiction code both countries , here we cannot change straight away .

We would like to request, how we can populate Canadian tax codes in 1111 accounting document.

Thanks

Former Member
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