Tax code E6 in procedure TAXB is invalid

[Former Member]

Hi,

I am introducing an intercompany flow where a Belgian sales org (and comp code) is selling to the end customer.

The goods are delivered by a French plant (and company code).

When I enter conditions from departure country FR to destination country BE in VK11, I have to chose a tax code from tax procedure TAXF (France).

This looks logical as departure country is FR.

Now when I create a billing doc based on a delivery to a BE customer, the tax code E6 (TAXF) is determined correctly.

However when the billing doc is saved I get the message "Tax code E6 in procedure TAXB is invalid".

What could be the reason TAXB (assigned to BE) is determined and not TAXF (assigned to FR)?

I would expect the tax procedure from the delivering plant would count.

Any suggestions?

Thanks!

Geert

[Former Member · Accepted solution]

Via user exits in sales and billing redetermined country of departure from FR (= del plant) to BE (= sales org)

[Shiva_Ram]

To me it looks the system is correctly functioning since the billing document is created by Belgium entity to send to customer. It is the Belgium entity who needs to submit the tax related reports and France entity needs to submit intercompany related transactions to authorities. So you may need to consult a tax professional on which tax code needs to be added for TAXB to reflect the sourcing from France entity.

Regards,