FICA Document Conversion from Legacy to SAP FICA Tax Issue

[former_member221838]

Hello Experts,

We want to convert large volume of legacy data/documents into SAP FICA documents. To handle this large volume we are planning to switch off our external tax engine (TAXUSX) during this document conversion and we will switch on internal tax engine using tax procedure TAXUSJ.

In short we will perform below activities -

1. Before Conversion (load data) – 
   1. Maximum address validation will be performed
   2. Conversion will populate correct jurisdiction code on the customer master data (Business Partner & Connection Object address) if correct ZIP code or ZIP+4 exist.

1. During Conversion (load data to SAP) –
   1. SAP internal tax engine with tax procedure TAXUSJ will be enabled (means we need to define all these jurisdiction codes that conversion populated in 1-B & 1-C – SAP internal tax jurisdiction code list)
   2. Conversion loads master data (jurisdiction codes populated by step 1-B & 1-C).
   3. Conversion loads document data with valid tax jurisdiction code populated above and tax code O1.
      

1. Post Conversion – 
   1. Change tax procedure to TAXUSX (external tax engine call enabled)
   2. Report Exceptions

So my first question is - are we following correct approach? I think we should not populate jurisdiction code or tax code for the converted FICA documents.

I want to understand long term impact of populating or not populating tax code and jurisdiction code on the converted documents. Any information would be of great help. Thanks.

Kind Regards,

Nikhil.

[william_eastman]

Nikhil:

I am confused.  During migration, tax is not a real consideration.  All of the old documents have already been taxed and so no new tax processing will take place.  The migration process needs to provide all of the tax data into the interface and it will just be populated into the migration documents.  As such, using internal or external at that stage will not have any beneficial effect. 

It could though cause issues if you think you will have different jurisdictions when using internal vs external.  And after changing back from B to A, you must ensure that those migrated documents can still be accessed - e.g. that all of the document attributes are still available in the system.

regards,

bill.

[former_member221838]

Hi Bill,

Thanks for your quick reply and sorry for the confusion. You are absolutely correct - all these old documents already been taxed (we are not bringing any tax line items but we are bringing whole amount e.g. if legacy has $ 10 document with $ 0.70 tax then we will post $ 10.70 FICA document).

So my question is - is it okay if we don't populate tax jurisdiction code and tax code on $ 10.70 FICA document? In that case I just need to remove tax code flag from EK02 for the conversion specific main/sub.

Please note - we have no requirement to identify tax component.

-

Kind Regards,

Nikhil J.

[former_member221838]

We are using internal tax engine for the conversion because then we can upload all jurisdiction code list in SAP. and whenever conversion loads master data then they don't need to call our external tax system to populate jurisdiction code.