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SAP Note 63103 - Plants abroad (tax procedure)

Note Language: English Version: 10 Validity: Valid Since 16.01.2013

Summary

Symptom Question:How should tax procedures be defined for "Plants abroad"?What consequences are there for defining the tax codes?

Other termsPlants abroad, tax procedure

Reason and PrerequisitesCurrently, the company code can work with only one tax procedure, namelythe tax procedure that is assigned to the country of the company code.

Currently, you cannot use several tax procedures within a company code.

The "Plants abroad" solution allows you to assign plants of differentcountries to a company code.This results in additional requirements for the specifications of the taxprocedure for this company code and for the specifications of the taxprocedures for the countries of plants that are assigned to this companycode.In particular, also note that tax codes that are set up in different taxprocedures for the same countries are defined in a standard way.

Solution

If A is the country of the company code X, the plant is assigned tocountries B, C, D, and so on.

Alternative 1: - A tax procedure TAXEUR for countries A, B, C, D, and so on. - A general tax procedure TAXEUR is defined that includes the taxspecifications for countries A, B, C, D and so on. - All tax codes requiredin these countries (with a country assignment) must be defined in this taxprocedure.

Alternative 2: - Different tax procedures for countries A, B, C, D, and so on. - Example: - Country A -> Tax procedure TAXA - Country B -> Tax procedure TAXB, and so on - ........ - In the tax procedure TAXA, all tax codes are defined for country A. - In the tax procedure TAXA, all tax codes of the countries are definedthat are required for acquisitions or deliveries in plants abroad, whichare assigned company code X (with a country assignment). - If K3 is a tax code from country B, the plant assigned to company codeA is required. This tax code K3 is defined in the tax procedure TAXB. Thetax code K3 must then also be defined in the tax procedure TAXA (withcountry assignment country B), whereby the definition of tax code K3 in thetax procedure TAXA must be the same as the definition of tax code K3 in the

tax procedure TAXB.

Recommendation:

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SAP Note 63103 - Plants abroad (tax procedure)

- We recommend that you define the tax procedure according to alternative2. Previously, alternative 1 was recommended, in particular, because the"Plants abroad" solution was not yet provided.

Background information: - When you send from a plant located in country B, SD finds a tax code sof the tax procedure that is assigned country B. - This tax code s is transferred from the SD application to the FIapplication. - The FI application interprets this tax code s using the tax procedurethat is assigned to country A of company code A. - As a result, when you use different tax procedures for country A andcountry B, you must ensure that the following applies: S is a tax code that is used in plant B. - Definition of tax code s in the tax procedure TAXA = Definition of the tax code s in tax procedure TAXB

Header Data

Release Status: Released for CustomerReleased on: 16.01.2013 16:10:43Master Language: GermanPriority: Recommendations/additional infoCategory: Consulting

Primary Component: FI Financial Accounting

The Note is release-independent

Related Notes

Number Short Text

10560 Tax determination for plant abroad