Tax configuration in SRM - how to set up?

[Former Member]

hi,

I am currently on SAP SRM 7.01 (both extended classic scenario for sites on R/3 back-ends and standalone scenario for sites on non-SAP Back-ends) and need to set up taxes.  I have a few SAP ERP backends that are being integrated with SRM, that covers many european countries as well as north america (United States and Mexico). I have Vertex connected to a couple of my SAP R/3 ERP back-ends that is used for US tax calculation.

Therefore, I believe I need to use the option "Tax Calculation Occurs in the Back-end system" in order to determine tax for sites on R/3 back-ends.  Which option do I use for sites using the standalone scenario (non SAP back-ends) - am i forced to use "customer specific BADi implementation"?

For the sites on R/3 back-ends, what else do I need to configure?  I assume I still need to determine the appropriate tax code in the SRM PO?  Or is the tax code determined in the R/3 back-end system?  I assume, the back-end system requires the tax code in order to calculate tax, and sends back the tax value to R/3?  If this is correct, I would need to define all tax codes in SRM, and define the default tax code by country/product category?  Is this correct?  This seems a lot of work as Tax code determination in the US is not very simple.

For the sites on non-SAP back-end systems, I assume i would need to define tax codes, define default tax codes by country/product category, and also define the tax rates in SRM?  Is there a BADI i can use to calculate the tax for this scenario?

Your thoughts?

Cheers,

[Former Member]

Hi,

Please find the below information for tax code configuration.

CalculationSettingCustomizing path

1.Define the system for tax calculation.SAP Supplier Relationship Management>SRM ServerCross-Application Basic Settings>Tax CalculationDetermine System for Tax Calculation

2.Define the allowed invoice verification tolerances for the variances between calculated tax amounts and tax amounts entered manually (optional).SAP Supplier Relationship Management>SRM Server>Cross-Application Basic Settings>Set Tolerance Checks

3.Define whether taxes for the total freight costs (that is, for all company codes) are to be calculated with a separate tax code (optional).SAP Supplier Relationship Management>SRM Server>Cross-Application Basic Settings>Tax CalculationDefine >Tax Calculation for Freight Costs

3.Define whether taxes for freight costs for specific company codes are to be calculated with a separate tax code (optional).SAP Supplier Relationship Management>SRM Server>Business Add-Ins>Tax CalculationCalculate >Tax for Freight Costs

4.You can maintain tax codes.SAP Supplier Relationship Management>SRM ServerCross-Application Basic Settings>Tax Calculation>Enter Tax Code

5.You can map tax codes that have different names in the FI system and in SAP SRM to each other.SAP Supplier Relationship Management>SRM Server>Cross-Application Basic SettingsTax Calculation>Assign Enterprise Buyer Tax Code to FI System

6.You can use individual tax code determination.SAP Supplier Relationship Management>SRM Server>Business Add-InsTax Calculation>Determine Tax Code

7.You can change or supplement the data used to calculate tax SAP Supplier Relationship Management>SRM Server>Business Add-Ins>Tax CalculationChange Tax Data

8.You can specify a tax code for country and product category (optional).SAP Supplier Relationship Management>SRM Server>Cross-Application Basic Settings>Tax Calculation>Determine Tax Code for Country/ Product Category

Hope this can be useful for you.

Regards,

Naga.