Canadian Tax - Drop ship from USA

[Former Member]

Hi Experts,

Here is a scenario we have and I am not sure how this can be handled in SAP. We have two company codes one is US and another one in Canada. Customer in canada places order to CA company code but the product is shipped out of US company code plant and CA company code bills the customer. The issue is if its shipped out of Plant A in US, customer doesn't pay tax, but if its shipped out of Plant B in US, customer pays tax (GST & HST). Can somebody help me out in this issue. Currently its working if I ship out of CA plant. If I ship out of US plant, I am getting CTXJ 100% but its not getting the tax code's. Am I missing something. I created a access sequence with combination of destination country, region, plant, customer tax classification and material classification, but its still not working.

Thanks.

Best Regards,

Jen

[Former Member]

Hi,

Just curious if you ever found a resolution to this? I have the exact issue and would be very grateful for any advice. Can it be resolved in SAP without customization?

Thanks,

Matt

[Jelena]

Not sure if there is anything different for intercompany, but for Canada we maintain the tax rates in FTXP transaction and then in CTXJ condition we enter the tax code that links it back to the rate. Do you use tax jurisdiction and do you have the right one in the order?

[neeraj_lal]

Jen Amb

Your scenario is Intercompany export scenario.

You mentioned

"I am getting CTXJ 100% but its not getting the tax code's. Am I missing something. I created a access sequence with combination of destination country, region, plant, customer tax classification and material classification, but its still not working."

Can you analyse your pricing and met me know what value you are getting there for Tax condtion. Do these value are same as you maintained in condtio record and expecting. You can see this in pricing analysis tab.

Regards

[Former Member]

Thanks a lot for your reply Neeraj/Moazzam.

Yes it is intercompany export scenario.

I did the analysis, it says condition record is missing for JRC1, JRC2, JRC3 & JRC4, this is when it is shipped from US plant to Canadian Customer. But its working for JRC1,2,3,4 with CTXJ 100% and without maintaining condition record value for JRC1,2,3,4.

Best Regards,

Jen.

[moazzam_ali]

Hi

Try with maintaining a condition record with table having Inco Terms field. What Inco Terms you have maintained in your ship to party master data?

Thank$