California sales tax exemption 4.1875

[Former Member]

California is implementing a 4 decimal percent tax exemption on 07/01/2014.   We use standard SAP tax jurisdiction functionality, which only allows a 3 decimal percent rate (6.500%).   Same issue exists both in A/R & A/P tax rates (JR1, JP1E).   We are in ECC6.

Is there any functionality in SAP that supports a 4 decimal tax percent?

Any guidance would be much appreciated.

[Lakshmipathi · Accepted solution]

For any change in statutory requirements, SAP would support that change.  So please raise OSS note so that SAP will guide you.

G. Lakshmipathi

[Former Member · Accepted solution]

Thanks for the guidance, following up with OSS.

[Former Member · Accepted solution]

Hi,

how did you solve this issue? Which is the OSS note?

Thanks

S.

[Former Member · Accepted solution]

Hi Sara,   sorry no solution yet.   I have raised an OSS note with SAP Support Portal and are working through the process.   If you have the same issue I suggest you also report it to the SAP Support Portal to make them aware that their customers are dealing with this issue.

[Former Member · Accepted solution]

Hi,

I found note 1486367 - Rounding problems in tax calculation if more than 4 decimals. This means that we can deal with 4 digits.

Is there any suggestion on where in SPRO this can be monitored?

Thanks

S.

[Former Member · Accepted solution]

In SPRO Sales Tax configuration can be found under Financial Accounting > Financial Accounting Global Settings > Tax on Sales/Purchases > Basic Settings, Calculation, Posting.

In our ECC6 system FTXP allows only 3 decimals on a percentage rate [ex 1.165%] and SAP agrees that is how FTXP currently works.

Thanks.

[Former Member · Accepted solution]

Hi, thanks for your reply.

Despite the rounding problem, my customer wants me to build a TAXUS VAT code that shows both percentages 7,50 and 4.1875 and not a single VAT code with the 3.3125% since he wants the two percentages being shown separatly on invoices and reporting.

Do you have any idea on how fullfill his requirements?

Thanks a lot

S.

[Former Member · Accepted solution]

Hi Sara, I'm still awaiting a response from SAP Support to my latest message.   If I get a solution I'll gladly post it.

My suggestion is that you enter your issue with the SAP Support Portal.  Sorry, I'm not familiar with TAXUS procedure.   We use procedure TAXUSJ Tax Jurisdiction and we do not print sales tax % on invoices, only the calculated amount.

[Former Member · Accepted solution]

SAP has provided 2 notes to resolve this issue:  2056214 & 2056663. 

[Former Member · Accepted solution]

Thank you!!!

[Former Member · Accepted solution]

Note 2056214 was updated on September 12th. 

You can create a new code using FTXP transaction.