PUBLIC

2021-12

Tax and charge configuration

SAP Ariba Procurement solutions
© 2021 SAP SE or an SAP affiliate company. All rights reserved.

THE BEST RUN

Content

Tax and charge configuration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Taxes in SAP Ariba Procurement solutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Third-party tax calculation overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

Enhanced third-party tax calculation for invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Workflow examples of enhanced third-party tax calculation for invoices. . . . . . . . . . . . . . . . . . . . . 15

Taxes and charges on requisitions and orders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26

Taxes and charges on invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

What are indirect and withholding taxes?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29

Tax calculation examples using the basic tax configuration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Before setting up your tax tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32

Topics about managing tax data in Ariba Administrator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

What are tax components? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
What are tax codes?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
What are tax code lookups and tax code lookup field maps?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
How to define tax components in Ariba Administrator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
How to define tax codes in Ariba Administrator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
How to define tax code lookup field maps in Ariba Administrator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

India GST information on requisitions and invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

How to configure India GST data for requisitions and invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

How to add state codes for supplier locations in Ariba Administrator. . . . . . . . . . . . . . . . . . . . . . 50

Tax and charge configuration data import files. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Tax information data setup requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Tax and charge data import sequence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Import Tax Types. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Import Tax Types: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Import Tax Type Translations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Import Tax Type Translations: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Import Tax Type Mappings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Tax and charge configuration

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 Tax Line Type Descriptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Import Tax Type Mappings: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Import Charge Types. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Import Charge Types: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Import Charge Type Translations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Import Charge Type Translations: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Import Tax Components. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Import Tax Components: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60
Import Tax Component Translations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62
Import Tax Component Translations: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Import Tax Codes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Import Tax Codes: files for Generic variants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63
Import Tax Codes: files for SAP variants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Import Tax Codes: files for PeopleSoft variants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Import Tax Code Translations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70
Import Tax Code Translations: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
Import Tax Code Lookups. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
Import Tax Code Lookups: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
Import Tax Code Lookup Field Map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72
Import Tax Code Lookup Field Map: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Import Tax Code Lookup Field Map for Withholding Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Import Tax Code Lookup Field Map for Withholding Taxes: Sample File. . . . . . . . . . . . . . . . . . . . . 74
Import Tax Rates By Tax Code Lookup. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75
TaxRateLookupByTaxCode.csv: PeopleSoft Example. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
TaxRateLookupByTaxCode.csv: SAP Example. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
TaxRateLookupByTaxCode.csv: Generic Example. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Import External Tax Calculation Providers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Import External Tax Calculation Providers: sample files. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76
Import Company Code Tax Registration Numbers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Import Company Code Tax Registration Numbers: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Import Supplier Tax Registration Numbers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Import Supplier Tax Registration Numbers: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Import States for Tax Mapping. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Import States for Tax Mapping: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Import Buyer Tax Registration Numbers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Import Buyer Tax Registration Numbers: Sample files. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82

Site configuration options for charges and taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

Self-service site configuration parameters for charges and taxes. . . . . . . . . . . . . . . . . . . . . . . . . . 87

Generate default withholding tax at the header level. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Include a Tax Code option for invoice tax entry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

Tax and charge configuration

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 Process tax accrual payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Default tax type for invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
Copy tax codes from invoice to IR document. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Third-party tax calculation for buying and invoicing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Enhanced third-party tax calculation for invoicing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Calculate tax for SAP Fieldglass invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .92
Show accounting info for tax line items on invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

Ariba Network tax-related invoice rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

Configuration steps for third-party tax calculation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95

Site configuration options for third-party tax calculation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Export Document Data for External Tax Calculation web service. . . . . . . . . . . . . . . . . . . . . . . . . . . .103
Custom payment posting info in exported payment requests. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
Tax info in payment requests with Enhanced third-party tax calculation for invoicing. . . . . . . . . . . . . 108
Custom fields that influence tax calculation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

Restrictions and caveats for third-party tax calculation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112

Troubleshooting tips for third-party tax calculation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .113

Sample requests and responses in third-party tax calculation. . . . . . . . . . . . . . . . . . . . . . . . . . . .114

Tax and charge configuration

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Tax and charge configuration

This guide is for SAP Ariba administrators responsible for choosing how taxes are calculated and setting up taxes
and charges.

Taxes and charges are supported on requisitions, purchase orders, invoices, and invoice reconciliations, depending
on your site's configuration.

This guide applies to:

● SAP Ariba Buying

● SAP Ariba Buying and Invoicing
● SAP Ariba Invoice Management
● SAP Ariba Contract Invoicing

Related guides

Invoicing data import and administration guide

Procurement data import and administration guide

Invoicing and payment process guide

Tax and charge configuration

Tax and charge configuration PUBLIC 5
Taxes in SAP Ariba Procurement solutions

The ability to add and validate taxes and charges on documents is highly configurable in SAP Ariba Procurement
solutions. Taxes and charges are supported on requisitions, purchase orders, invoices, and invoice reconciliations
depending on your site's configuration.

Tax calculation is available in the following SAP Ariba Procurement solutions:

● SAP Ariba Buying

● SAP Ariba Buying and Invoicing
● SAP Ariba Invoice Management

Three tax configurations: basic, enhanced, and third-party

In the default configuration of SAP Ariba Buying and Invoicing and SAP Ariba Invoice Management, only taxes on
invoices and invoice reconciliations using a basic tax configuration setup are available. The default configuration
doesn't support adding taxes and charges on requisitions and purchase orders.

You can have your site configured to use the enhanced tax computation engine. The enhanced tax computation
engine (sometimes referred to as the total landed cost feature, or TLC) lets you track the cost associated with
business purchases from order generation to payment to gain better visibility into the full financial cost of doing
business, your SAP Ariba Buying and Invoicing and SAP Ariba Buying solution can be configured to allow taxes,
charges, and discounts on requisitions and purchase orders. If you allow taxes and charges on requisitions and
purchase orders, you must configure your tax tables for the enhanced tax computation engine.

The enhanced tax computation engine provides the following features not available in the basic tax configuration:

● Calculates taxes on requisitions and invoice reconciliations using complex tax tables, such as being able to
calculate tax applied on another tax or tax applied on the sum of the net amount of the line item and another
tax
● Required for taxes on requisitions
● Supports tax abatement and applying taxes per unit quantity of the line item
● Supports withholding tax calculation
● Tax codes can be classified as deductible, which excludes the tax amount from budget reservations.

You can also integrate your site with a third-party tax calculation system, giving your site access to tax data
updated in real time. You can use the third-party tax calculation system to validate taxes on requisitions, invoice
reconciliations, or both. Integrating with a third-party tax calculation system gives you access to tax data relevant
for multiple geographies and ensures compliance with constantly changing tax laws.

 Note

Your organization must have an agreement with a third-party tax provider organization to integrate with their
system for management of taxes.

Tax and charge configuration

6 PUBLIC Taxes in SAP Ariba Procurement solutions
Basic tax configuration: taxes on invoice reconciliations

With the basic tax computation configuration, tax amounts are calculated using the following two-step approach:

1. First, the tax code is retrieved from the tax code lookup table based on the line item commodity code, ship
from address (country/region and state), and ship to address (country/region and state).
2. Next, the tax rate is retrieved from the tax rate lookup by tax code table based on the tax code obtained from
the tax code lookup table, the tax type of the tax line, and the plant (SAP only). The tax rate lookup by tax code
table uses these values to determine the final tax amount.

Enhanced tax computation engine: taxes on requisitions and invoice reconciliations

With the enhanced tax computation engine, SAP Ariba Procurement solutions use the following three-step
approach to calculate tax amounts:

1. First, the tax code is retrieved from the tax code lookup table based on the line item commodity code, ship
from address (country/region and state), and ship to address (country/region and state).
2. Next, the tax engine identifies the tax components that are part of the tax codes.
3. The tax components are filtered based on the purchasing units, set IDs, or plants as per the ERP system used
and the taxes are calculated based on the tax rates and tax types specified for the tax components.

Third-party tax calculation: taxes on requisitions and invoice reconciliations

With the enhanced tax computation engine, SAP Ariba Procurement solutions use the following four-step approach
to calculate tax amounts:

1. First, the data on the requisition or invoice reconciliation is exported to the third-party tax calculation system.
2. Next, the third-party system retrieves the tax codes based on the tax-determining fields. Examples of tax-
determining fields at the header level of a document include Company Code and the Document Date.
Similarly, at the line level, tax-determining fields include Commodity Code, Ship To, Partitioned Commodity
Code, Vendor, and other custom fields that are configured as tax-determining fields.
3. The tax engine in the third-party tax calculation system calculates the taxes for the line items on the document
based on the tax rates and the tax types and sends the tax information to the SAP Ariba solution.
4. The SAP Ariba solution applies the taxes to the line items on the approvable document.

Related Information

Taxes and charges on requisitions and orders [page 26]

Taxes and charges on invoices [page 27]

Tax and charge configuration

Taxes in SAP Ariba Procurement solutions PUBLIC 7
Third-party tax calculation overview

Integrating a SAP Ariba Procurement solutions with a third-party tax provider allow buyers to add tax data on
requisitions and invoice reconciliation (IR) documents using taxes calculated in the third-party engine.

Buyers can choose requisitions, IR documents, or both for requiring taxes to be be calculated in the third-party
engine.

Integrating with a third-party tax calculation engine offers buyers the following advantages:

● Provides access to a wide base of country/region-specific tax data hosted in third-party engines
● Reduces manual intervention and updates for tax data when geography-specific taxation rules are revised
● Leverages the benefits of complex tax-calculation logic available in third-party engines
● Ensures better compliance with recording and reporting of tax accounting information

The SAP Ariba solution sends the data on the document to the third-party tax calculation engine using SAP Ariba
web services.

For approvable documents (requisitions or IR documents) that are not configured for tax calculation in the third-
party engine, taxes are calculated by the SAP Ariba enhanced tax computation engine.

What is the tax calculation based on?

The third-party tax calculation engine performs a tax code lookup to determine the taxes based on a combination
of tax-determining fields on a requisition or an invoice reconciliation document.

● Examples of tax-determining fields at the header level of a document are Company Code or Business Unit and
the Document Date.

Tax and charge configuration

8 PUBLIC Third-party tax calculation overview
 ● At the line level, tax-determining fields include Commodity Code, Ship To, Partitioned Commodity Code,
Vendor, and custom fields configured as tax-determining fields.

Taxes applied on requisition line items are copied to purchase orders. When a purchase order is sent to Ariba
Network, the tax types in the tax code applied on the purchase order are replaced by the tax types used in Ariba
Network based on the tax type mappings.

How does third-party tax calculation affect invoice reconciliation and payment?

When you use the feature Third-party tax calculation for buying and invoicing for invoice reconciliation, SAP
Ariba Buying and Invoicing leverages tax information that's constantly updated in the third-party tax calculation
engine. Invoices are validated against the latest jurisdictional tax data, helping ensure compliance with constantly
changing tax laws. SAP Ariba Buying and Invoicing raises tax exceptions based on the results of the validation in the
tax calculation engine.

If you also enable Enhanced third-party tax calculation for invoicing, you get the following enhancements to ease
reconciliation and payment processes:

● Improved handling of summary tax information from suppliers reduces the number of invoice exceptions while
continuing to send the ERP system the granular tax details required.
● Taxes the buyer pays directly to the government based on ship-to location or other factors are flagged and
accrued. (These taxes are often referred to as direct-pay or self-assessed taxes.)
● Accrual taxes are sent to the ERP system with jurisdictional allocation details so buyers know exactly what
they’re responsible for paying the government.
● Line-level credit memos are supported.
● Support for sites configured as PeopleSoft and Generic variants in addition to sites integrated with SAP ERP.

Related Information

Enhanced third-party tax calculation for invoices [page 10]

Configuration steps for third-party tax calculation [page 95]

Tax and charge configuration

Third-party tax calculation overview PUBLIC 9
Enhanced third-party tax calculation for
invoices

Buyers using third-party tax calculation for invoice taxes can enable Enhanced third-party tax calculation for
invoicing. Enhancements include payment posting instructions for accruals, additional details sent to and from the
tax calculation engine, and support for buyer-payable taxes.

The following sections describe system behavior and look-and-feel when Enhanced third-party tax calculation for
invoicing is enabled.

Separate tax calculation engine responses for invoice reconciliation (IR) and payment posting
instructions

Tax data from a third-party tax calculation engine tends to be much more detailed (granular) than the tax
information on the supplier's invoice or tax calculation within SAP Ariba Buying and Invoicing. To prevent
unnecessary exceptions resulting from differing tax granularity, the tax calculation engine sends summarized tax
information for invoice reconciliation if that's what the invoice contains. If the invoice had granular tax details, the
tax calculation engine sends breakdown amounts.

Granular tax details are always viewable on the IR document.

After the invoice IR document is approved, the tax calculation engine sends the granular tax details necessary for
posting payment to the ERP system. The details include tax accrual information such as accruals for taxes the
buyer pays directly to tax authorities.

Flow of tax information

The following table illustrates the difference between Enhanced third-party tax calculation for invoicing and
standard Third-party tax calculation for buying and invoicing with respect to the flow of tax information.

Enhanced third-party tax calculation Standard Third-party tax calculation

Scenario for invoicing for buying and invoicing

Supplier sends summary tax amounts At the reconciliation stage, the tax calcu­ The tax calculation engine sends granu­
lation engine sends a summary tax lar, jurisdiction-level tax details to be
amount if that's what the supplier invoice used during reconciliation, even if the
has, while also sending the details so supplier invoice only has a summary tax
buyers can view the breakdown. amount. This leads to numerous tax ex­
ceptions when matching the tax calcula­
tion results to the invoice.

Tax and charge configuration

10 PUBLIC Enhanced third-party tax calculation for invoices
 Enhanced third-party tax calculation Standard Third-party tax calculation
Scenario for invoicing for buying and invoicing

Transaction involves buyer-payable taxes The tax calculation engine checks for and Buyer-payable taxes are not flagged by
(also known as direct-pay transactions or
flags buyer-payable tax lines (also refer­ the tax calculation engine or the SAP
self-assessed taxes)
red to as direct-pay lines). The invoicing Ariba solution.
solution raises an exception if the sup­
plier invoice includes a tax line that's
buyer-payable.

Supplier sends a line-item credit memo The tax calculation engine sends tax in­ The tax calculation engine doesn't calcu­
formation for line-item credit memos as late taxes for credit memos.
well as standard invoices.

Tax from the tax calculation engine has Regardless of which tax calculation The tax calculation engine sends tax
multiple instances of the same tax type
method you use, the reconciliation proc­ breakdowns like this: Sales Tax 7%, Dis­
for a single tax line
ess doesn't allow multiple instances of trict Tax 3%, District Tax .5%.
the same tax type for a single tax line.
That's because the invoicing solution
uses Tax Type as a unique ID when
matching tax types.

With Enhanced third-party tax

calculation for invoicing, the tax calcula­
tion engine consolidates multiple instan­
ces of the same tax type into a single in­
stance: District Tax 3.5%.

There are tax accruals When the tax calculation engine sends Invoice reconciliation (IR) documents are
tax payment posting instructions, all tax exported without payment posting and
accruals are included. Accrued tax accrual information.
amounts are distributed among multiple
tax authorities as appropriate.

Tax and charge configuration

Enhanced third-party tax calculation for invoices PUBLIC 11
 Enhanced third-party tax calculation Standard Third-party tax calculation
Scenario for invoicing for buying and invoicing

Tax calculation engine calculates reverse Reverse taxes are when the tax calcula­ The tax calculation engine sends the two
taxes
tion engine sends two exact tax lines, one exact tax lines, one with a positive num­
with a positive number and one with a ber and one with a negative number.
negative number.

With Enhanced third-party tax

calculation for invoicing, the tax calcula­
tion engine sends the total (0) but also
stores the individual values.

For example:

The value-added tax (VAT) on a transac­

tion is 10.

The government gives a tax relief of 10 on

the transaction.

The tax calculation engine sends a VAT of

0 in response to the tax calculation re­
quest and stores the tax breakdown of 10
and -10 in the TaxComponents ele­
ment of the response. The tax calculation
engine can send the posting instructions
(for 10 and -10) in response to the re­
quest for payment posting instructions.

User interface differences when Enhanced third-party tax calculation for invoicing is enabled

When users view a line-level tax exception on an IR document, there are links for viewing the tax breakdown of the
amount calculated by the tax calculation engine.

● For all line-level tax exceptions except Buyer Payable Tax, the Expected Tax Amount field has a link that
shows the details in a popup.

● For line-level Buyer Payable Tax exceptions, there is a field called Tax Accrual Amount. This field shows tax
amount to be accrued by the buyer and has a link to the details.

Tax and charge configuration

12 PUBLIC Enhanced third-party tax calculation for invoices
 ● The View Details link displays the tax breakdown in the Tax Info Details section.

The following figure includes an example of a tax breakdown.

In the tax breakdown table:

● The Tax component column shows tax components sent by the third-party tax calculation engine.
● The Description column contains a formula string from the tax calculation engine. Descriptions of more than
1000 characters are truncated.

When header-level taxes are prorated among material lines, the Prorated Header Tax Info table shows the tax
amounts for each line. The table includes a Buyer Payable Tax column to indicate items with a buyer-payable tax.
Rows with that option checked are excluded from proration.

Tax and charge configuration

Enhanced third-party tax calculation for invoices PUBLIC 13
Awaiting Tax Engine Confirmation invoice status

There is a transitional status for invoices, Awaiting Tax Engine Confirmation. This status is used after SAP Ariba
Buying and Invoicing sends approved IR tax data to the tax calculation engine and is awaiting the payment posting
instructions from the tax calculation engine. The only time you're likely to see this status is if an error occurs in the
response from the tax calculation engine. The invoice status remains Awaiting Tax Engine Confirmation until the
tax calculation response is received successfully.

Payment export task for PeopleSoft and Generic variants

The tax calculation engine sends tax accrual information to SAP Ariba Buying and Invoicing. For PeopleSoft and
Generic variants, use the task Export Payment Requests with Advance Payments and Taxes, which exports all
tax-related information in addition to the details of advance payments and funds management accounting
information (if enabled).

 Note

Use this task only if your site is configured to export approved invoices for payment directly from SAP Ariba
Buying and Invoicing to the external ERP system in CSV file format, and not from Ariba Network.

Related Information

Configuration steps for third-party tax calculation [page 95]

Workflow examples of enhanced third-party tax calculation for invoices [page 15]

Tax and charge configuration

14 PUBLIC Enhanced third-party tax calculation for invoices
Workflow examples of enhanced third-party tax
calculation for invoices

The following image and steps describe the high-level workflow of the tax calculation process for invoices on sites
using Enhanced third-party tax calculation for invoicing
(Application.Procure.EnhancedTaxCalculationInExternalSystems).

For each invoice, the third-party tax calculation engine:

1. Calculates the taxes for the invoice line items when the invoice is first submitted. The tax calculation engine
calculates a summary tax amount or a breakdown of several tax amounts, depending on the tax details on the
original invoice.
For example, a supplier invoice might include one sales tax amount of 10 (a summary of all sales tax amounts)
or a breakdown of taxes, such as a province sales tax of 5, district tax of 3, and city tax of 2.
2. Sends jurisdictional tax details in the form of posting instructions. This provides SAP Ariba Buying and
Invoicing with all the details to send to the ERP system. This happens after the IR document is approved.

Tax and charge configuration

Workflow examples of enhanced third-party tax calculation for invoices PUBLIC 15
Information flow for line-level tax calculation for invoices

Figure 1:

1. An invoice is created in one of the following ways:

○ A supplier creates an invoice for a purchase order on Ariba Network.
○ An invoice agent creates an invoice in SAP Ariba Buying and Invoicing.
2. SAP Ariba Buying and Invoicing performs the following actions:
○ Creates an invoice reconciliation (IR) document.

Tax and charge configuration

16 PUBLIC Workflow examples of enhanced third-party tax calculation for invoices
 ○ Exports the invoice data to the tax calculation engine to validate the tax information on the invoice.
3. The tax calculation engine performs the following actions:
○ Checks whether the tax info received is at a summary level or is a granular breakdown of taxes.
○ Calculates the taxes and sends the information to SAP Ariba Buying and Invoicing.
The tax amount sent by the tax calculation engine reflects the granularity on the original supplier invoice:
○ If the tax calculation engine received a summary tax amount, it returns a summary tax amount, along
with details of the tax breakdown for viewing.
○ If the tax calculation engine received a granular breakdown of tax amounts, it returns a granular
breakdown.
4. SAP Ariba Buying and Invoicing performs the following tasks:
○ Receives the tax calculation from the tax calculation engine.
○ Applies the expected tax information to the line items.
○ Raises exceptions as needed based on tax information received from the tax calculation engine.
○ Depending on your configuration, adds a member of the Tax Manager or the Tax Editor group to handle
tax exceptions.
5. The tax manager takes the appropriate action to resolve tax-related exceptions.
6. After all approvers approve the IR document, SAP Ariba Buying and Invoicing exports the data on the IR
document to the tax calculation engine, requesting payment posting instructions.
7. The tax calculation engine sends payment posting instructions to SAP Ariba Buying and Invoicing, with full
jurisdictional tax details.
8. SAP Ariba Buying and Invoicing:
○ Receives the payment posting instructions from the tax calculation engine.
○ Creates a payment request for the reconciled invoice, including the full jurisdictional tax details and accrual
information.
○ Sends the payment request to the ERP system for processing of payments.

Example: supplier sends summary tax amount

1. SAP Ariba Buying and Invoicing receives an invoice and sends the tax information to the tax calculation engine.

Line 1 amount: 100

Line 1 sales tax amount (summary): 10

2. The tax calculation engine calculates the taxes and returns a summary tax amount and the tax breakdown.
3. SAP Ariba Buying and Invoicing receives the calculated taxes and raises tax exceptions as appropriate.

Tax summary from tax cal­

Original tax amount culation engine Tax breakdown components Exception

Line 1 sales tax amount Line 1 sales tax amount State sales tax: 8 Under tax variance
(summary): 10 (summary): 11
County sales tax: 2

City sales tax: 1

4. The tax manager resolves the exceptions, the IR document is fully approved, and SAP Ariba Buying and
Invoicing sends the final IR information to the tax calculation engine.

Tax and charge configuration

Workflow examples of enhanced third-party tax calculation for invoices PUBLIC 17
5. The tax calculation engine processes the IR information and sends payment posting information.
If the tax manager resolved the under tax variance exception by disputing the tax amount on the invoice:

Tax exception information Tax manager action Tax payment info

Invoice tax amount: 10 Accept expected tax amount Original amount: 10

Expected tax amount: 11 Final amount: 11

State sales tax: 8

County sales tax: 2

City sales tax: 1

Accrued and paid to appropriate tax au­

thority: 1

If the tax manager resolved the under tax variance exception by accepting the supplier tax amount:

Tax exception information Tax manager action Tax payment info

Invoice tax amount: 10 Accept invoice tax amount Original amount: 10

Expected tax amount: 11 Final amount: 10

Sales tax: 10

Example: supplier sends tax breakdown

1. SAP Ariba Buying and Invoicing receives an invoice and sends the tax information to the tax calculation engine.

Line 1 amount: 100

Line 1 state sales tax amount: 10

Line 1 city sales tax amount: 1

2. The tax calculation engine calculates the taxes and returns the resulting tax breakdown.
3. SAP Ariba Buying and Invoicing receives the calculated taxes and raises tax exceptions as appropriate.

Tax amounts from tax calculation en­

Original tax for line 1 gine Exception

State sales tax: 10 State sales tax: 8 Over tax variance

City sales tax: 1 City sales tax: 1 None

County sales tax: 2 Under tax variance

4. The tax manager resolves any exceptions, the IR document is fully approved, and SAP Ariba Buying and
Invoicing sends the final IR information to the tax calculation engine.
5. The tax calculation engine processes the IR information and sends payment posting information.

Tax and charge configuration

18 PUBLIC Workflow examples of enhanced third-party tax calculation for invoices
 Suppose the tax manager resolved the under tax variance exception by disputing the tax amount on the
invoice:

Tax exception information Tax manager action Tax payment info

Over tax variance for state sales tax Accept expected tax amount Original state sales tax amount: 10

State sales tax amount: 10

Final state sales tax amount: 8
Expected tax amount: 8

Under tax variance for county sales tax Accept expected tax amount Original county tax amount: 0

County sales tax amount: 0 Final county sales tax amount: 2

Expected tax amount: 2 Accrued, to be paid to county tax au­

thority: 2

No exception for city sales tax None Original city sales tax amount: 1

Final city sales tax amount: 1

Taxes the buyer pays directly to tax authorities

SAP Ariba uses the term buyer-payable tax for item taxes that the buyer pays directly to tax authorities. Depending
on the situation, buyer-payable taxes can also be referred to as direct-pay taxes, self-assessed taxes, or use taxes.
Buyers accrue buyer-payable taxes.

Buyers and suppliers typically have an understanding of the situations in which an item tax is a buyer-payable tax.
Often, the buyer's ship-to location determines this. Suppliers don't usually invoice for taxes the buyer pays directly
because buyers don't owe suppliers for them.

When calculating taxes for IR documents, the tax calculation engine determines whether a tax is a buyer-payable
tax. Here's the workflow:

1. SAP Ariba Buying and Invoicing sends tax information for an invoice to the tax calculation engine.
2. When calculating taxes, the tax calculation engine checks whether any of the taxes are buyer payable and
marks them as such.
3. When SAP Ariba Buying and Invoicing receives calculated taxes that include buyer-payable taxes:
○ If a tax line on the supplier's invoice comes back from the tax calculation engine as buyer payable, a Buyer
Payable Tax exception is raised against the tax line.
The expected tax amount is 0 because buyers don't pay suppliers for a tax that's buyer-payable.
○ Buyer-payable tax details are stored on the IR document.
4. To resolve Buyer Payable Tax exceptions, the tax manager disputes the tax line.
Disputing a tax line means accepting the tax calculation engine's tax amount, 0, by choosing the Accept
Expected option. Buyer Payable Tax exceptions don't include an option to accept the amount on the supplier
invoice.
5. When SAP Ariba Buying and Invoicing sends payment information to the ERP system, buyer-payable tax
information is included as an accrual, with jurisdictional allocation details.

Tax and charge configuration

Workflow examples of enhanced third-party tax calculation for invoices PUBLIC 19
 Info from tax calculation en­ Result in SAP Ariba Buying
Tax on invoice gine and Invoicing Resolution

Line 1 tax amount: 10 Line 1 tax amount: 10 Buyer Payable Tax exception Tax manager accepts ex­
raised against line. pected tax amount.
Buyer-payable tax? Yes
Expected tax: 0 Accrued and paid to appro­
priate tax authority: 10

 Note

Requisitions don't include information specific to buyer-payable taxes, such as use tax or direct-pay location.

Line-item credit memos

● The workflow for taxes on line-item credit memos is the same as the workflow for taxes on standard invoices.
● The third-party tax calculation engine sends negative values for credits. Likewise, accrual values are negative.

Header-level tax calculation in SAP variants

In sites integrated with SAP ERP, if the invoice has header-level taxes, each header tax line is split and prorated
among the material lines and exported as multiple lines in the export of tax payment information. For example, if
the invoice has 2 material lines, header taxes are split proportionally between the two lines based on line amount.

 Note

Header-level taxes are not prorated to line items with buyer-payable taxes. For example, if there are 5 material
lines, and 2 lines have buyer-payable taxes, the header tax is prorated to the 3 lines that don't have buyer-
payable taxes. If all line items have buyer-payable tax, a Buyer Payable Tax exception is raised for the header
tax.

With enhanced third-party tax calculation for invoices:

1. SAP Ariba Buying and Invoicing prorates header taxes before sending the supplier tax information to the tax
calculation engine. A proration algorithm in SAP Ariba Buying and Invoicing determines how the header tax is
distributed among material lines.
For example:

Header tax prorated to lines, sent to tax calculation en­

Supplier invoice with 2 material lines and header tax gine

Material line 1 amount: 100 Material line 1 sales tax amount: 10

Material line 2 amount: 50 Material line 2 sales tax amount: 5

Header-level sales tax amount: 15

2. The tax calculation engine returns tax calculation results for each line.

Tax and charge configuration

20 PUBLIC Workflow examples of enhanced third-party tax calculation for invoices
 3. SAP Ariba Buying and Invoicing validates the amounts and raises header-level exceptions as appropriate,
based on the totals of the lines. (When there's a header tax, there are no line-level exceptions, because the
supplier didn't send line-level taxes.)
Examples of tax calculation responses and the resulting invoice exceptions:

Sample tax calculation responses for

Supplier invoice prorated header tax Exceptions

Material line 1 amount: 100 Sales tax for material line 1: 10 None

Material line 2 amount: 50 Sales tax for material line 2: 5

Header-level sales tax amount: 15

Sales tax for material line 1: 12 Header-level under tax variance

Sales tax for material line 2: 6 Invoice tax amount: 15

Expected tax amount: 18

Sales tax for material line 1: 9 Header-level over tax variance

Sales tax for material line 2: 5 Invoice tax amount: 15

Expected tax amount: 14

4. A tax manager resolves the header tax exceptions. They can view the prorated header tax details on the IR
document under Header Taxes, Charges, and Discounts when the IR is in edit mode.

Tax calculation response and result­

ing exception Tax manager action Final tax amount on IR document

Sales tax for material line 1: 12 Disputes supplier header tax by choos­ Header tax: 18
ing the Accept Expected option
Sales tax for material line 2: 6 Proration info:
○ Sales tax for material line 1: 12
Header-level exception: Under tax var­
iance (Tax calculation engine total = 18, ○ Sales tax for material line 2: 6

supplier invoice tax = 15)

Accepts supplier header tax Header tax: 15

Proration info:
○ Sales tax for material line 1: 10
○ Sales tax for material line 2: 5

Accrued taxes

The third-party tax calculation engine uses a hierarchy of jurisdictions to determine how your organization pays tax
authorities for accrued taxes.

● Payment posting instructions sent by the tax calculation engine include tax accruals.
● When an under tax variance exception arises, if the tax manager accepts the expected amount (that is, the tax
calculation amount), SAP Ariba Buying and Invoicing accrues the difference between the tax the supplier
charged on the invoice and the tax calculated by the tax calculation engine.

Tax and charge configuration

Workflow examples of enhanced third-party tax calculation for invoices PUBLIC 21
  Note

This point reflects the behavior on most sites. The behavior depends on the parameters
Application.Invoicing.TaxAccrualExceptions and
Application.Invoicing.ProcessPaymentsForTaxAccrual, which affect accrued tax payments. For
information about these parameters, see Invoice exception types for accrued tax payments and Process
tax accrual payments [page 88].

● Buyer-payable taxes are always accrued because they're not paid to the supplier.
● When the reconciled IR document has a tax accrual (due to a disputed under tax variance exception, for
example), payment information exported to the ERP system includes information for paying the appropriate
tax authorities.
● With tax accruals, one tax line on the supplier's invoice can be split into multiple tax payment lines based on tax
jurisdiction and other factors. For example, one summary sales tax on the supplier's invoice might be split into
separate tax payment lines for state sales tax, district sales tax, and city sales tax.
● Tax authority payment information can be more granular than the accrual amount. For example, an accrual
amount of 5 can be split into multiple tax authorities such as a state sales tax of 3 and a city sales tax of 2.
The tax amount accrued in this scenario might not be accurate. The tax calculation engine calculated the tax
from the supplier's perspective (seller user tax), but the accrual is being paid from the buyer's perspective
(consumer use tax). Calculation for seller and consumer use tax might not be the same. This means there
might be a discrepancy between the tax amount displayed during reconciliation and the tax amount sent to the
ERP system. For example:

Tax on supplier invoice 10

Tax from tax calculation engine (calculated as seller user 12

tax)

Exception Under tax variance

Tax manager action Accept expected amount, 12

Tax accrual amount on the IR document 2

Tax accrual from tax calculation engine (calculated as con­ 1.80

sumer use tax)

Tax accrual sent to ERP system 1.80

When value-added tax (VAT) lines on the invoice differ from the calculation

For Value Added Tax (VAT) lines, as with other tax lines, it's possible that the tax calculation engine will return a
different tax amount from what's on the invoice. In the interest of VAT compliance, your organization must decide
how the Accounts Payable (AP) department will handle this situation. Technically, the person reconciling the
invoice has three choices: Reject the invoice, accept (pay) the amount on the invoice, or accept (pay) the calculated
amount. There is no way to manually enter an amount, such as 0. In most VAT counties, short-paying a supplier is
not allowed. Therefore, we recommend instructing AP to either accept (pay) the amount on the invoice; or reject
the invoice and resolve the difference through a credit, debit, or a corrected invoice.

Reverse-charge VAT is a negative amount. The external tax calculation engine marks reverse-charge VAT as a
buyer-payable tax. In countries/regions where the invoice must reflect what happens in terms of payment, for
reverse-charge VAT, the tax rate on the invoice must be 0% to show that the buyer doesn't pay the supplier

Tax and charge configuration

22 PUBLIC Workflow examples of enhanced third-party tax calculation for invoices
anything for that tax. If the supplier's invoice includes a tax line that turns out to be a reverse-charge VAT, the buyer
either rejects or accepts the invoice.

Following is an example flow when an invoice contains a tax line that turns out to be a reverse-charge VAT:

1. Suppose the supplier's invoice includes a VAT of 8%.

2. The external tax calculation engine marks the tax line as a buyer-payable tax.
3. In SAP Ariba Buying and Invoicing, a Buyer Payable Tax exception is raised on the line.
The expected tax amount is 0 because buyers don't pay suppliers for a tax that's buyer-payable.
4. The buyer either accepts the tax on the invoice or rejects the invoice.
5. If the buyer accepted the tax on the invoice:
○ The posting call response includes a VAT of 8% and a VAT of -8%. The ACCOUNT_INSTRUCTION field
carries the payment information used for reverse-charge VAT in the ERP system.
○ The supplier can issue a credit memo to rectify the discrepancy.

Additional tax calculation examples

Tax from tax calculation engine (exam­ Result in SAP Ariba Buying and Invoic­
Tax on supplier invoice ples) ing

State tax, county tax, city tax State tax, county tax Over Tax Variance invoice exception for
city tax
(city tax is not applicable for the item, ac­
cording to the tax calculation engine)

State tax, county tax, city tax State tax and county tax with non-zero Over Tax Variance invoice exception for
values city tax.

City tax with 0 amount The other taxes might have an exception
if there is a discrepancy between supplier
tax and tax calculation engine tax.

One line with sales tax of 100 GST of 90, PST of 10 Tax Calculation Failed invoice exception

(2 ExternalTaxItems in the tax cal­

culation response instead of both GST
and PST under a single sales tax)

State tax, county tax, city tax State tax, county tax, city tax, municipal­ Under Tax Variance invoice exception
ity tax due to municipality tax

When tax codes differ between the IR document and the posting instructions

Depending on your tax configuration, the tax code in the posting instructions might differ from the tax code on the
IR document. For example:

● The tax code on the IR document be a placeholder tax code that simply reflects whether the tax is paid to the
supplier, accrued, or a combination of the two.
The default tax code used depends on whether the buyer accepts the tax on the invoice or accepts the
calculated (expected) tax.

Tax and charge configuration

Workflow examples of enhanced third-party tax calculation for invoices PUBLIC 23
● The posting instructions contain the actual tax codes used for payment. The tax code in the posting
instructions is exported in payment requests.

This section includes two examples that use the following default tax codes for the IR tax calculation.

Table 1: Example set of default tax codes for IR tax calculation

Tax payment Tax code

Taxes paid to vendor I1 Taxes paid to the supplier as part of the

invoice

Buyer accrued taxes U1 Taxes the buyer fully accrues

Partially accrued taxes P1 Taxes paid on this line item are a combi­
nation of taxes paid to the vendor and
taxes accrued by the buyer

Table 2: Example 1: supplier invoice tax amount = 10, tax calculation amount = 12
IR tax calculation call Buyer's decision Posting call

The tax engine calculates the expected The buyer decides between paying the After the buyer decides how to respond
tax for the invoice, which in this example invoice amount or the tax engine to the IR tax calculation, and the IR is ap­
is 12. amount. proved, the posting call gets the actual
tax code.
● Option 1: accept the invoice amount
○ The buyer decides to pay the 10
on the invoice.
○ All of this tax is paid to the sup­
plier. Nothing is accrued.
○ Default tax code: I1.
● Option 2: accept the expected
amount from the tax engine
○ The buyer pays the 10 on the in­
voice.
○ The buyer expects to accrue
the remaining 2.
○ Some of this tax is paid to the
supplier and some is accrued
by the buyer.
○ Default tax code: P1.

Tax and charge configuration

24 PUBLIC Workflow examples of enhanced third-party tax calculation for invoices
Table 3: Example 2: supplier invoice tax amount = 0, tax calculation amount = 10
IR tax calculation call Buyer's decision Posting call

The tax engine calculates the expected The buyer decides between paying the After the buyer decides how to respond
tax for the invoice, which in this example invoice amount or the tax engine to the IR tax calculation, and the IR is ap­
is 10. amount. proved, the posting call gets the actual
tax code.
● Option 1: accept the invoice amount
○ The buyer decides to pay the 0
on the invoice.
○ No tax is accrued.
○ Default tax code: I1.
● Option 2: accept the expected
amount from the tax engine
○ The buyer expects 10 to be ac­
crued.
○ All of this tax is accrued. No tax
is paid to the supplier.
○ Default tax code: U1.

Tax and charge configuration

Workflow examples of enhanced third-party tax calculation for invoices PUBLIC 25
Taxes and charges on requisitions and orders

The way taxes and charges are added and processed on requisitions and orders

Taxes and charges on requisitions

Depending on the tax computation engine, taxes are applied on requisitions in the following ways:

● Enhanced tax computation engine: taxes get automatically applied on requisition line based on the tax code
lookup tables and tax components you define. Users can also manually apply or edit these tax codes if they are
a member of the Tax Editor or Tax Manager groups. Only one indirect tax code can be applied on a requisition
line item.
● Third-party tax calculation: if requesters are members of the Tax Editor or Tax Manager groups, they can can
manually apply tax codes on the line items while creating requisitions using the tax codes defined in the SAP
Ariba solution. However, the SAP Ariba solution exports the data on requisitions to the third-party system to
calculate taxes for the line items in the following cases:
○ Tax managers or tax editors while creating requisitions or editing requisitions initiate tax calculation by
clicking the Update Taxes button
○ Users submit requisitions for approval
○ The last approver in the approval flow of a requisition approves the requisition
Based on the tax calculation response received from the third-party system, taxes get automatically applied on
requisition line items, overriding any previously entered tax codes. Unlike the enhanced tax computation
engine, tax editors or tax managers cannot edit the externally calculated taxes on requisitions.

Users can manually add charges to line items while creating requisitions.

Taxes and charges on purchase orders

Taxes applied on requisition line items get copied to purchase order line items. When a purchase order is sent to
Ariba Network, the tax types in the tax code applied on the purchase order are replaced by the tax types used in
Ariba Network based on the tax type mappings you have defined.

Similarly, the charge types applied on the purchase order are replaced by the charge types used in Ariba Network
based on the charge type mappings. Discounts applied on purchase order line items are sent to Ariba Network as
allowances with the type discount.

In SAP Ariba Invoice Management, if ERP copy orders include taxes, charges, or discounts, SAP Ariba Invoice
Management ignores the tax, charge, and discount data. ERP copy orders are orders generated in the external ERP
and sent through Ariba Network to your SAP Ariba invoicing solution.

Tax and charge configuration

26 PUBLIC Taxes and charges on requisitions and orders
Taxes and charges on invoices

The way taxes and charges are added and processed on invoices depends on several factors: site configuration,
Ariba Network business rules, and how the invoice is created.

Taxes and charges on invoices created by suppliers on Ariba Network

When suppliers create a PO-based invoice in Ariba Network, an Ariba Network business rule you set in your Ariba
Network buyer account controls if tax information is copied from the order to the invoice, or if suppliers must
manually add taxes to the invoice.

Charges on a purchase order are copied to the invoice and suppliers can edit these charges if the required business
rules are enabled in Ariba Network. Charges from ERP copy orders aren't carried over to invoices or service sheets.
Charges that the supplier adds to the invoice don't show up in SAP Ariba Buying and Invoicing.

When suppliers add or modify tax information on the invoices on Ariba Network, they select the tax category when
entering taxes. The value of the tax category gets replaced in your SAP Ariba invoicing solution by the tax type
mapping you have defined. If the invoice contains an unmapped tax type, the default tax type configured for your
site is used.

Likewise, charge types on invoices from Ariba Network are mapped to the charge types you have defined for your
SAP Ariba invoicing solution. If the invoice contains an unmapped charge type, the default charge type Other
Charges is used with the Ariba Network charge type appended to it. For example, if a supplier added a charge type
Priority Delivery to the invoice in Ariba Network and this charge type is not mapped to any charge type in your SAP
Ariba invoicing solution, then the charge type for the charge is displayed as Other Charges - Priority Delivery.

Taxes and charges on invoices created in SAP Ariba Invoice Management or SAP Ariba Buying
and Invoicing

By default, when invoice entry users create PO-based invoices based on paper invoices they receive from suppliers,
tax and charge information from the purchase order is not copied to the invoice. Invoice entry users enter taxes
and charges at the header or line level of the invoice. They use tax types, tax codes, and charge types that reflect
the information on the supplier's paper invoice. SAP Ariba can configure SAP Ariba Buying and Invoicing sites to
copy tax, discount, and charge type information from the purchase order by enabling feature SINV-6818: PO-based
defaulting of taxes, charges, and discounts on manual invoices.

Taxes and charges on auto-generated invoices (evaluated receipt settlement)

When the evaluated receipt settlement feature is enabled, invoices are auto-generated for line items flagged for
evaluated when a goods receipt has been fully approved. Taxes, charges, and discount information is copied from
the purchase order to the invoice.

Tax and charge configuration

Taxes and charges on invoices PUBLIC 27
Taxes on invoice reconciliation (IR) documents

The invoice reconciliation process uses tax code lookup tables to calculate the expected tax amount.

Tax codes are auto-generated for invoice line items on the IR document based on the tax code lookup tables you
have defined to calculate the expected tax amount. If the tax information on the original invoice differs from the
expected tax information per your configuration, your SAP Ariba invoicing solution generates tax invoice exceptions
that will require a tax manager's attention.

Indirect taxes are always auto-generated at the line-item level in the IR document. Header-level tax is calculated on
each taxable line item and then aggregated to give a total header-level tax amount. This amount is applied to the
default line item and is used during reconciliation if header-level reconciliation is required.

Withholding taxes are auto-generated at either the header level or the line-item level depending if the original
invoice included withholding taxes on the header or line item level. If an invoice with eligible line items does not have
withholding taxes applied, then during invoice reconciliation withholding taxes are applied by default on the line
level. You can change your site configuration to generate withholding taxes on header level if required.

To calculate taxes on SAP Fieldglass invoices, the Calculate tax for SAP Fieldglass invoices
(Application.Invoicing.CalculateTaxForFieldglassInvoices) parameter must be set to Yes so that
applicable tax codes are added to IR documents.

Tax and charge configuration

28 PUBLIC Taxes and charges on invoices
What are indirect and withholding taxes?

SAP Ariba Procurement solutions support two tax categories: indirect tax and withholding tax.

● Indirect taxes include taxes levied on services and goods. These taxes are added to the total invoice amount
and paid to the supplier, who in turn pays them to the government.
Users can apply indirect taxes on requisitions, invoices, and invoice reconciliation documents.
● Withholding taxes are not included in the invoice amount payable to the supplier. Buyers are responsible to pay
withholding taxes directly to the government.
Withholding taxes can only be applied on invoices and invoice reconciliation documents.

Indirect and withholding tax types, tax components, and tax codes

When importing your tax types, you define if a tax type is an indirect tax or withholding tax.

Tax components can be indirect tax components or withholding tax components. Withholding tax components are
mapped to withholding tax types while indirect tax components are mapped to indirect tax types. Withholding tax
components have a negative tax rate.

Tax codes can be indirect tax codes or withholding tax codes. You can assign only withholding tax components to a
withholding tax code and only indirect tax components to an indirect tax code. In addition, a tax code cannot have
more than one tax component of the same tax type effective at the same time.

Tax and charge configuration

What are indirect and withholding taxes? PUBLIC 29
Tax calculation examples using the basic tax
configuration

The tax calculation examples use sample tax code and tax rate lookup tables to illustrate how tax is calculated for
line items.

A line item’s commodity code and rank are used to determine the initial tax code, and then the tax rate is
determined in the tax rate lookup table using the tax code and rank.

 Note

This process does not apply to sites using the enhanced tax computation engine or a third-party tax calculation
system.

Multiple tax rates and types

When using the basic tax computation engine, multiple tax rates can be attached to one tax code if the invoice line
item references multiple tax types. Each tax rate has an associated rank, which is used to determine which tax rate
to use when a line item matches more than one tax rate. The tax rate with the highest rank (lowest number) is used.

Wildcard (partial) matching

When using the basic tax computation engine, you can configure entries in the tax code table to specify which tax
codes and rates allow wildcard or partial matching by leaving values empty (null). You can also configure a default
rate when no other matches apply. The values are case-sensitive. For example, a state value of “CA” does not
match “Ca”.

The following table shows examples of tax code table entries:

ShipFromCount ShipFromStat ShipToCount ShipToSta

Rank CommodityCode ry e ry te TaxCode

0 OFFICE:CALENDAR US MI US CA TC1

0 EQUIP:PROTO US MI US California TC2

0 MFG:CABLE US Washington US CA TC3

1 MFG:CABLE GB GB TC4

1 OFFICE:CALENDAR Canada Alberta Canada Ontario TC5

1 OFFICE:CALENDAR GB US CA TC6

2 OFFICE:CALENDAR GB Canada TC7

Tax and charge configuration

30 PUBLIC Tax calculation examples using the basic tax configuration
 ShipFromCount ShipFromStat ShipToCount ShipToSta
Rank CommodityCode ry e ry te TaxCode

2 DE TC8

2 CA TC9

3 TC10

The next table shows examples of tax rate lookup by tax code table entries:

Rank Tax Code Tax Type Tax Rate Effective Date

0 TC1 SalesTax 0.10 Sun Jan 01 00:00:00 GMT+05:30 2003

0 TC1 SalesTax 0.15 Wed Mar 01 00:00:00 GMT+05:30 2004

0 TC2 SalesTax 0.25 Wed Mar 01 00:00:00 GMT+05:30 2004

0 TC3 SalesTax 0.05 Wed Mar 01 00:00:00 GMT+05:30 2004

0 TC4 VATTax 0.175 Wed Mar 01 00:00:00 GMT+05:30 2004

0 TC5 GST 0.07 Wed Mar 01 00:00:00 GMT+05:30 2004

0 TC5 PST 0.08 Wed Mar 01 00:00:00 GMT+05:30 2004

0 TC6 VATTax 0.08 Wed Mar 01 00:00:00 GMT+05:30 2004

0 TC7 VATTax 0.07 Wed Mar 01 00:00:00 GMT+05:30 2004

0 TC8 VATTax 0.195 Wed Mar 01 00:00:00 GMT+05:30 2004

0 TC9 SalesTax 0.7 Wed Mar 01 00:00:00 GMT+05:30 2004

0 TC10 SalesTax 0.0825 Wed Mar 01 00:00:00 GMT+05:30 2004

Using the previous tax tables, the following situations occur:

● Partial matching: A line item with commodity code OFFICE:CALENDAR and shipped to DE matches to tax code
TC8 in the tax code lookup table and tax rate 0.195 in the tax rate lookup by tax code table. This line item is a
partial match because only the ShipToCountry value is matched.
● Multiple row matching: A line item with commodity code OFFICE:CALENDAR and shipped from GB matches
rows with tax code TC6 and TC7 in the tax code lookup table. The row with the highest rank (lowest number) is
used. Therefore, from the tax rate lookup by tax code table, the tax rate 0.08 is used.
● Multiple tax types: A line item with commodity code OFFICE:CALENDAR, shipped to Canada, and shipped from
Canada matches tax code TC5 in the tax code lookup table. In the tax rate lookup by tax code table, TC5 with
tax type GST uses the tax rate 0.07. Similarly, for the same line item, in the tax rate lookup by tax code table,
TC5 with tax type PST uses the tax rate 0.08.
● Use of effective date: A line item with commodity code OFFICE:CALENDAR, shipped from US (state MI), and
shipped to US (state CA) matches one row in the tax code lookup table (TC1) and two rows in the tax rate
lookup by tax code table (0.10 and 0.15). The row with the later effective date is used (0.15).
● Default rate: The default rate in this example is 0.0825 (TC10).

Related Information

Taxes in SAP Ariba Procurement solutions [page 6]

Tax and charge configuration

Tax calculation examples using the basic tax configuration PUBLIC 31
Before setting up your tax tables

Before you start defining your tax configuration, make sure you understand how tax data flows across SAP Ariba
Procurement solutions, external systems, and Ariba Network, and any configuration options that impact the tax
configuration.

Members of the Customer Administrator and Tax Manager groups can import tax and charge data using the Tax
Manager and Site Manager workspaces in Ariba Administrator. Tax components, tax codes, and tax code lookup
field maps can also be created and managed using the user interface.

Decide which tax configuration to use

If your business processes don't require taxes and charges on requisitions and purchase orders and requires simple
tax tables for invoices and invoice reconciliations, you can use the basic tax configuration.

If you require taxes and charges using complex tax tables for requisitions, purchase orders, invoices, and invoice
reconciliations, you can use the enhanced tax configuration or choose to integrate with third-party tax providers to
calculate taxes in their systems. Compared to the enhanced tax configuration engine, integrating with third-party
tax providers offers the following advantages:

● Provides access to a wide base of country/region-specific tax data hosted in third-party systems
● Reduces manual intervention and updates for tax data when geography-specific taxation rules are revised
● Leverages the benefits of complex tax-calculation logic available in third-party systems
● Ensures better compliance with recording and reporting of tax accounting information

If you use the evaluated receipt settlement feature in SAP Ariba Buying and Invoicing, make sure you allow taxes
and charges on requisitions and purchase orders. SAP Ariba Buying and Invoicing uses the tax information on
purchase orders when it auto-creates the invoice after the goods receipt has been approved.

Integration with ERP Systems and third-party tax providers

When approvable documents are sent to an ERP system or a third-party system, tax amounts might have to be
recalculated externally in the ERP system or third-party system using the tax codes in the exported documents. To
ensure this, the tax codes defined in SAP Ariba Procurement solutions must match the tax codes defined in your
external systems. In most cases, the ERP system will be the source of truth when importing tax codes for the
enhanced tax computation engine and the third-party system for external tax calculation.

Integration with Ariba Network

For seamless exchange of purchase orders and invoices containing taxes and charges between Ariba Network and
SAP Ariba Procurement solutions, the tax types and charge types defined in SAP Ariba Procurement solutions

Tax and charge configuration

32 PUBLIC Before setting up your tax tables
must be mapped to the tax types and charge types defined in Ariba Network. Any unmapped charge or tax types
are mapped to a default value. The tax type default value is configurable.

Business rules in Ariba Network help buyers and suppliers avoid errors during data entry or submittal of
documents. Rules can prevent suppliers from adding certain information, make it optional, or require them to
provide certain information. Review your Ariba Network business rules that control tax and charge data entry to
ensure they support your business requirements.

Review your site's configuration settings

A number of configuration parameters set the default behavior for tax and charges handling. Most of the
configuration parameters are not available for customer self-service. Contact SAP Ariba Customer Support if you
need to modify your site's tax and charge-related configuration parameters.

Related Information

Site configuration options for charges and taxes [page 84]

Tax and charge configuration

Before setting up your tax tables PUBLIC 33
Topics about managing tax data in Ariba
Administrator

You can manage tax and charge tables for SAP Ariba Procurement solutions using the Tax Manager and Site
Manager workspaces in Ariba Administrator. The data you manage depends on whether your site uses basic,
enhanced, or third-party tax computation.

What are tax components? [page 34]

What are tax codes? [page 37]

What are tax code lookups and tax code lookup field maps? [page 39]

How to define tax components in Ariba Administrator [page 42]

How to define tax codes in Ariba Administrator [page 43]

How to define tax code lookup field maps in Ariba Administrator [page 44]

Related Information

Before setting up your tax tables [page 32]

What are tax components?

Tax components are used by the enhanced tax computation engine. They are individual components of tax codes
that are applied on line items. Examples of tax components include VAT, service tax, and sales tax.

You can create tax components using the user interface or you can import them using CSV files.

Each tax component has a specific tax rate and can be defined for a specific country/region and state. If a country/
region has different tax rates for a tax type, then you need to create different tax components, one for each tax rate.
For example, if you have different tax rates for VAT, say 10%, 14%, 18%, 20%, and 25%, you need to create five
different tax components for these. Also, you need to create different tax components for each country/region.

The following table describes the attributes of a tax component. These are displayed as fields on the Create Tax
Component page.

Field Description

Name The user-specified name of the tax component. Multiple tax

components can have the same name but it is advised to pro­
vide a uniquely identifiable name to every tax component.

Tax and charge configuration

34 PUBLIC Topics about managing tax data in Ariba Administrator
Field Description

Description Information about the tax component, such as its purpose and
applicability

Is Withholding Tax Specifies whether the tax component is a witholding tax. This
check-box cannot be cleared once it is selected.

Tax Type The tax type mapped to the tax component. Though you can
edit the tax type of a tax component after creating it, it's ad­
vised to not edit it if you've applied the tax component on any
requisition or invoice.

Rate The percentage or per unit rate of the tax component. For with­
holding taxes, the rate must be a negative value.

Applied As Specifies whether the rate is to be applied as a percentage or

on a per unit basis. For withholding this, the rate can only be
applied as a percentage.

Abatement Percentage of the net amount on which the tax is applied. For
example, some import duties are applied on an amount more
than the item’s price; say twice the price. In such cases, abate­
ment is 200 percent.

Country The country/region for which the tax component is applicable.

If you specify a country/region, the tax component can only be
assigned to tax codes defined for that country/region. If you do
not specify a country/region, the tax component can be as­
signed to any tax code. This field is mandatory if you are creat­
ing tax components using the user interface.

State The state for which the tax component is applicable. This ena­
bles you to define different tax components for different states
in the same country/region. For example, sales tax can vary
across different states in a country/region.

Effective Date The date from which the tax component is effective. This ena­
bles you to define a tax component that will become effective
in the future, say the next financial year. If you apply a tax code
that includes a tax component which is not yet effective, the
tax component is not considered when calculating taxes for
the item.

Expiry Date The date on which the tax component expires. Expired tax
components are not considered while calculating the tax on an
item, even if they are part of the tax code applied on that item.

Tax and charge configuration

Topics about managing tax data in Ariba Administrator PUBLIC 35
Field Description

Purchasing Unit/Plant/Set ID The unit in the company for which the tax component is appli­
cable. For generic variants, specify a purchasing unit, for SAP
variants, specify the plant, and for PeopleSoft variants, specify
the Set ID for which the tax component is applicable. If you
specify a value for this field, the tax component is not applied
to line items from other units.

Is Deductible Specifies whether the tax component is deductible. Deductible

tax components can have separate accounting information to
simplify their tracking and refunds. If you clear this check box
after specifying the accounting information, changes made to
the accounting fields are lost. This field is not applicable for
withholding taxes.

Accounting You can specify separate accounting details for deductible tax
components. If you do not specify separate accounting details,
deductible tax components use the default accounting details
defined for all deductible tax components. If these too are not
defined, they use the accounting details of the line item. If a de­
ductible tax component is applied on a charge, it uses the ac­
counting details of the line item. Deductible tax components
use only one set of accounting details even if the line item on
which they are applied uses split accounting. Non-deductible
tax components use the accounting details and splits of the
line item, even if you specify separate accounting details for
them while creating them.

 Tip

The date based on which taxes are calculated in invoice reconciliation documents is customizable. By default,
the system uses the creation date of the invoice reconciliation document to determine applicable tax
components based on the effective date; but for more acurate tax calculations, SAP Ariba recommends that
you have your site configured to use the invoice date.

If you want to change the effective date for tax calculation on invoice reconciliations configured for your site,
contact SAP Ariba Customer Support.

Related Information

What are tax codes? [page 37]

How to define tax components in Ariba Administrator [page 42]

Tax and charge configuration

36 PUBLIC Topics about managing tax data in Ariba Administrator
What are tax codes?
Tax codes are sequenced collections of one or more tax components that define the tax rates applied on line items
and how to calculate the tax amount. Only one tax code can be applied on a line item.

Tax codes are used in the enhanced tax engine configuration and also in third-party tax calculation systems. Tax
codes in the basic tax configuration simply define the name, description, and the country/region.

For line items that are exempted from tax, instead of not applying a tax code, apply a tax code that has a tax
component with zero tax rate. The description of this tax code should clearly indicate that the item is exempted
from tax.

The following table describes the attributes of a tax code. These are displayed as fields on the Create Tax Code
page in Ariba Administrator.

Field Description

ID User-specified unique identifier of the tax code.

Is Withholding Tax Specifies whether the tax code is a withholding tax code.

Name User-specified name of the tax code. Multiple tax codes can
have the same name, though it is advised to provide a uniquely
identifiable name to every tax code.

Description Information about the tax code, such as its purpose and applic­
ability.

Country The country/region for which the tax code is applicable. If you
specify a country/region, the tax code can be applied only on
line items being shipped to that country/region. If you do not
specify a country/region, the tax code can be applied on all line
items. This field is mandatory while creating tax codes using
the user interface.

State The state for which the tax code is applicable. This enables you
to define different tax codes for different states in the same
country/region. For example, tax on petroleum products can
vary across different states in a country/region.

Tax Components The tax components that are assigned to the tax code. You can
assign up to 702 tax components to a tax code to include the
different taxes applicable on a line item. For example, you can
assign tax components VAT, service tax, and CESS to a tax
code defined for assembled machinery. You cannot assign
more than one tax component of the same tax type that is ef­
fective at the same time to a tax code. Also, you cannot assign
indirect tax components to withholding tax codes or withhold­
ing tax components to indirect tax codes.

Tax and charge configuration

Topics about managing tax data in Ariba Administrator PUBLIC 37
Field Description

Sequence Specifies the sequence in which tax components must be ap­

plied to a line item to calculate tax. Every tax component as­
signed to a tax code has a unique sequence, which is a set of
one or more upper-case Latin letters. For example, A, B, C, or
AA, AB, ZZ. Sequences enable you to define complex tax struc­
tures.

Applied On Specifies the amount on which the tax rate must be applied to
calculate taxes. This field can take any mathematical formula.

You can use the following keywords in this formula:

● Quantity: This is used to apply taxes on the quantity of

the item. This is used when the tax component has a per
unit tax rate.
● NetAmount: This is used to apply taxes on the dis­
counted price of an item.
● BaseAmount: This is used to apply taxes on the original
or contract price of the item.

You can also use the sequence of another tax component to

apply tax on taxes. For example:

● NetAmount*0.5: To apply tax on 50% of the item's net

amount
● NetAmount+A: To apply tax on the sum of the item's net
amount and the tax amount of the tax component with se­
quence A.
● A: To apply tax only on the tax amount of the tax compo­
nent with sequence A.

The table below explains how you can use the Applied On field to apply a tax on another tax or on the base amount
plus a tax. In the example below, let us assume the BaseAmount of the line item to be USD100 and the quantity to
be 10.

Applied On Applied On

(specified for­ (calculated

Sequence Tax Component Tax Rate mula) Abatement value) Tax Amount

A VAT 20% BaseAmount 100% $100 $20

B Service Tax 10% BaseAmount 100% $100 $10

C Cess 2% B 100% $10 $0.2

D Custom Duty 20% BaseAmount 200% $200 $40

E Excise Duty $1 per unit Quantity 100% 10 $10

Tax and charge configuration

38 PUBLIC Topics about managing tax data in Ariba Administrator
 Applied On Applied On

(specified for­ (calculated

Sequence Tax Component Tax Rate mula) Abatement value) Tax Amount

Total Tax Amount $80.2

You can also use formulas to define the Applied On amount for a tax component. For example, in Japan,
withholding taxes are calculated based on the tier in which the amount lies. A 10% tax is applicable on amounts up
to JPY 1,000,000 while a 20% tax rate is applicable on amounts greater than JPY 1,000,000. The total withholding
tax is calculated by adding the tax amounts for the two tiers. In this case, you can specify the formula
min(BaseAmount,1000000)*10% + max(BaseAmount-1000000,0)*20% in the Applied On field.

Related Information

How to define tax codes in Ariba Administrator [page 43]

What are tax components? [page 34]
What are tax code lookups and tax code lookup field maps? [page 39]

What are tax code lookups and tax code lookup field
maps?
Tax code lookups enable automatic application of tax codes on requisitions and invoice reconciliation documents
using the enhanced tax computation engine or externally in the third-party tax calculation systems.

Tax Code Lookups

Tax code lookup field maps define the mapping between tax code lookup fields and line item fields of requisitions,
invoices, and invoice reconciliation documents. For sites enabled to use the enhanced tax computation engine, tax
managers and customer administrators can define tax code lookup field maps using CSV file import on the Tax
Manager user interface.

For indirect taxes, the tax code lookup fields are mapped to requisition, invoice, or invoice reconciliation line item
fields. Based on this mapping, system applies indirect tax codes on requisition, invoice, or invoice reconciliation line
items. For withholding taxes, the tax code lookup fields are mapped to invoice and invoice reconciliation line item
fields. Based on this, the system applies withholding tax codes at the header or line-item level on invoices and
invoice reconciliation documents.

The following table illustrates how tax codes are automatically identified based on the values of different line item
fields. You can see that the tax code TAX-US1 is applicable on a line item having commodity code 10001, which is
being shipped from USA to USA. This tax code will get applied if the automatic tax application occurs between
January 1, 2014 and December 31, 2020.

Tax and charge configuration

Topics about managing tax data in Ariba Administrator PUBLIC 39
 Commodity­ ShipFrom­ ShipToCoun­
Description Rank Code Country try EffectiveDate ExpiryDate TaxCode

TCL-1 1 10001 IE US 1/1/2014 12/31/2020 TAX-IE1

TCL-2 1 10001 US US 1/1/2014 12/31/2020 TAX-US1

TCL-3 1 10001 DE US 1/1/2014 12/31/2020 TAX-DE1

TCL-4 1 10024 DE US 1/1/2014 12/31/2020 TAX-DE2

TCL-5 2 10024 DE US 1/1/2014 12/31/2020 TAX-DE3

If multiple tax codes are specified for the same combination of line item field values, then the tax code to be applied
is selected based on its rank. If the ranks are also the same, then any of tax codes is considered to be a applicable
on the line item. In the table above, the tax code TAX-DE2 will be applied on the line item.

About Adding Custom Fields to the Tax Code Lookup

You can add custom fields to the tax code lookup to enable tax calculation based on additional criteria. To do this,
you need to contact your SAP Ariba customer support administrator.

The SAP Ariba customer support administrator can add custom fields to the tax code lookup by creating new fields
in the TaxCodeLookup class, using the Customization Manager Field Configuration workspace in Ariba
Administrator.

After a custom field is added to the tax code lookup, a customer administrator or tax manager must map it to a line
item field by creating a tax code lookup field map for the custom field.

Tax Code Lookup Field Maps

For indirect taxes, tax code lookup field maps map tax code lookup fields to line item fields of requisitions, invoices,
and invoice reconciliation documents. For withholding taxes, tax code lookup field maps map tax code lookup fields
to line item fields of invoices and invoice reconciliation documents.

Default tax code lookup field maps are defined in the system for all the out-of-the-box tax code lookup fields. You
can edit, activate, or deactivate this default mapping or define new tax code lookup field maps for custom fields in
the tax code lookup using the Tax Manager workspace.

The following table describes the default mapping defined in the system for all the out-of-the-box tax code lookup
fields. For information on the out-of-the-box tax code lookup fields, see Import Tax Code Lookups [page 70].

Tax and charge configuration

40 PUBLIC Topics about managing tax data in Ariba Administrator
 Line Item Field

For Invoice Reconciliation

Tax Code Lookup Field For Requisition Line Item For Invoice Line Item Line Item

CommodityCode NA CommodityCode

SystemCommodityCode Description.CommonCo Description.CommonCo Description.CommonCo

mmodityCode mmodityCode mmodityCode

ShipFromCountry SupplierLocation.Cou ShipFrom.PostalAddre ShipFrom.PostalAddre

ntry ss.Country ss.Country

ShipFromState SupplierLocation.Sta ShipFrom.PostalAddre ShipFrom.PostalAddre

te ss.State ss.State

ShipToCountry ShipTo.Country ShipTo.PostalAddress ShipTo.PostalAddress

.Country .Country

ShipToState ShipTo.State ShipTo.PostalAddress ShipTo.PostalAddress

.State .State

SupplierLocation LineItemCollection.S LineItemCollection.S LineItemCollection.S

upplierLocation upplierLocation upplierLocation

ProcurementUnit ProcureLineItemColle ProcureLineItemColle ProcureLineItemColle

ction.ProcurementUni ction.ProcurementUni ction.ProcurementUni
t t t

Related Information

How to define tax code lookup field maps in Ariba Administrator [page 44]

Tax and charge configuration

Topics about managing tax data in Ariba Administrator PUBLIC 41
How to define tax components in Ariba
Administrator
If your SAP Ariba solution is configured to calculate taxes using the enhanced tax computation engine, you can
create, edit, and delete tax components using the Tax Manager workspace in Ariba Administrator.

Prerequisites

● You must be a member of the Tax Manager or Customer Administrator group.

● Tax types must be defined in the site.

Procedure

1. On the dashboard, click Manage Core Administration .

2. Click Tax Manager Tax Components .

3. On the Tax Components page, click Create New.
4. On the Create Tax Component page, on the General tab, specify the details of the tax component.

 Note

If you specify a value for the Purchasing Unit, Plant, or Set ID field, the tax component is only applied to
line items from the specified purchasing unit, plant, or set ID.

For information on the fields on the Create Tax Component page, see What are tax components? [page
34].

5. If the tax component is deductible, specify its accounting details on the Accounting tab.

 Note

If you do not define the accounting details for a deductible tax component, it picks up the accounting
details applicable to all deductible tax components. If this too is not defined, the tax component uses the
accounting details of the requisition line item.

6. Click Save.

The tax component is created and listed on the Tax Components page.
7. To edit a tax component, on the Tax Components page, click Edit, edit the fields displayed on the Edit Tax
Component page, and click Save.

 Note

It is advised not to edit the tax type if you have applied the tax component on any requisition or invoice.

8. To delete a tax component, on the Tax Components page, select the tax component and click Delete.

Tax and charge configuration

42 PUBLIC Topics about managing tax data in Ariba Administrator
Related Information

How to define tax codes in Ariba Administrator [page 43]

What are tax components? [page 34]

How to define tax codes in Ariba Administrator

You can create, edit, activate, and deactivate tax codes using the Tax Manager workspace in Ariba Administrator.

Prerequisites

● You must be a member of the Tax Manager or Customer Administrator group.

● Tax components must be defined in the site.

Procedure

1. On the dashboard, click Manage Core Administration .

2. Click Tax Manager Tax Codes .

3. On the Tax Codes page, click Create New.
4. On the Create Tax Code page, on the General tab, specify the details of the tax code.

For information on the fields on the General tab, see What are tax codes? [page 37].
5. Click the Details tab.
6. Click Assign Component.

 Note

You can assign upto 702 tax components to a tax code.

You cannot assign more than one tax component of the same tax type, that is effective at the same time, to
a tax code.

A new row is added to the table with sequence A. This sequence value is incremented for every tax component
you assign to the tax code.
7. Select a tax component using the chooser displayed in the Tax Component column.

 Note

The tax component chooser displays only the tax components that have been defined for the country/
region selected for the tax code and the ones which do not have a country/region associated with them.

Tax and charge configuration

Topics about managing tax data in Ariba Administrator PUBLIC 43
8. Specify the Applied On value.

 Note

The Applied On value must only be Quantity if the tax is applied per unit, or it must be BaseAmount,
NetAmount, or a valid formula if the tax is applied as a percentage. To apply a tax component on another
tax component, specify a valid formula using defined sequences. For example, (A+B).

9. If required, move the tax components up or down in the sequence using the Move Up and Move Down buttons.

 Note

To apply a tax, say Cess, on another tax, say VAT, the tax component for VAT must assigned to the tax code
before assigning the tax component for Cess. For more information on defining complex tax structures, see
What are tax codes? [page 37].

10. Click Save.

The tax code is created and listed on the Tax Codes page.

11. To edit a tax code, on the Tax Codes page, click Actions Edit .

12. To activate a tax code, on the Tax Codes page, click Actions Activate .

13. To deactivate a tax code, on the Tax Codes page, click Actions Deactivate .

Related Information

How to define tax components in Ariba Administrator [page 42]

What are tax codes? [page 37]

How to define tax code lookup field maps in Ariba

Administrator
If your SAP Ariba solution is configured to calculate taxes using the enhanced tax computation engine, you can
manage the tax code lookup field maps for indirect and withholding taxes used by the tax engine.

Prerequisites

● You must be a member of the Tax Manager or Customer Administrator group.

● Tax codes must be defined in the site.

Tax and charge configuration

44 PUBLIC Topics about managing tax data in Ariba Administrator
Context

By default, fields in the tax code lookup are mapped to the respective line items fields. You can change this default
mapping using the Tax Manager workspace in Ariba Administrator. You can create, edit, activate, and deactivate
tax code lookup field maps.

Procedure

1. On the dashboard, click Manage Core Administration .

2. Click Tax Manager Tax Code Lookup Field Map to define mappings for indirect taxes or Tax Manager
Tax Code Lookup Field Map for Withholding Taxes to define mappings for withholding taxes.
3. To create a new tax code lookup field map, click Create New.
4. On the General tab, select the field in the tax code lookup, using the Tax Code Lookup Field pull-down menu.
5. From the Line Item Type pull-down menu, select the type of line item for which you want to define the tax code
lookup field map.

 Note

For indirect taxes, you can map tax code lookup fields to line item fields of requisitions, invoices, and
invoice reconciliation documents. For withholding taxes, you can map tax code lookup fields to line item
fields of invoices and invoice reconciliation documents.

6. Click the (select) link to select the line item or approvable field.
7. Click Save.
8. To edit a tax code lookup field map, on the Tax Code Lookup Field Map or Tax Code Lookup Field Map for
Withholding Taxes page, click Actions Edit .
9. To activate a tax code lookup field map, on the Tax Code Lookup Field Map or Tax Code Lookup Field Map for
Withholding Taxes page, click Actions Activate .
10. To deactivate a tax code lookup field map, on the Tax Code Lookup Field Map or Tax Code Lookup Field Map
for Withholding Taxes page, click Actions Deactivate .

You cannot delete a tax code lookup field map.

Related Information

What are tax code lookups and tax code lookup field maps? [page 39]
How to define tax codes in Ariba Administrator [page 43]

Tax and charge configuration

Topics about managing tax data in Ariba Administrator PUBLIC 45
India GST information on requisitions and
invoices

All businesses operating in the states and the union territories of India must adhere to the India Goods and
Services Tax (GST) act of 2016, effective from July 1, 2017.

Under GST, all goods and services transacted in India are classified under the Harmonized System of Nomenclature
(HSN) system and the Service Accounting Code (SAC) system. GST for goods and services is determined based on
the HSN code or the SAC code of an item.

The GST information on requisitions includes the classification codes assigned to the line items. The Classification
Code for an item is based on the SAC or the HSN code mapped to the commodity code of the item.

Invoices compliant with India GST rules must include the following information:

● Buyer GST ID: The GST registration number of the buyer organization.
● Supplier GST ID: The GST registration number of the supplier organization.
● Tax Invoice Number: A consecutive serial number, unique for a financial year.

Components of GST

Depending on whether a trading transaction is intra-state or inter-state, the components of GST are determined as
follows:

● SGST and UTGST: State GST or SGST is a tax levied by the respective state government on supplies of goods
and services within the state. The previous state taxes, such as the value-added tax (VAT), entertainment tax,
luxury tax, and entry tax are subsumed under SGST.
Similar to SGST, UTGST or Union Territory GST is a tax levied by the respective union territory.
● CGST: Central GST or CGST refers to taxes levied by the central government on supplies of goods and services
within a state. The previous central taxes, such as the central excise duty, additional excise duty, special excise
duty, central sales tax, and service tax are subsumed under CGST.
● IGST: Integrated GST or IGST is the tax levied on the supply of goods and services on inter-state trade across
India. The taxes collected under IGST is shared by the central and the respective state governments based on
the rates specified by the central government.

Tax and charge configuration

46 PUBLIC India GST information on requisitions and invoices
The following image illustrates how SGST, CGST, and IGST are applied on goods and services:

Prerequisites

● All businesses with an annual turnover exceeding a specific limit must be registered under GST in each state or
union territory where they operate. The threshold limit varies depending on whether a state or a union territory
is classified as a special category state.
● Buyer and supplier organizations must have separate GST identification numbers (GSTIN) for each state where
they have registered their business. GSTIN refers to a unique, state-wise, 15-character identification code for
tax payers in India under the new GST regime. The first two digits of this identification code represent the state
code. For example, "29" in the GSTIN "29BFEQB4818G1Z5" is the state code for Karnataka.

Related Information

Adding India goods and services tax (GST) on invoices

How to add India GST information on an invoice
Central Board of Excise and Customs website

Tax and charge configuration

India GST information on requisitions and invoices PUBLIC 47
How to configure India GST data for
requisitions and invoices

Configuring data for India Goods and Services Tax (GST) involves mapping state codes to supplier locations and
defining and mapping HSN and SAC codes.

Prerequisites

● Members of the Customer Administrator group can perform this task.

● All businesses with an annual turnover exceeding a specific limit must be registered under GST in each state or
union territory where they operate. The threshold limit varies depending on whether a state or a union territory
is classified as a special category state. For more information about the registration requirements, see the
Central Board of Excise and Customs website: http://www.cbec.gov.in/htdocs-cbec/gst .
● Buyer and supplier organizations must have separate GST identification numbers (GSTIN) for each state where
they have registered their business. GSTIN refers to a unique, state-wide, 15-character identification code for
tax payers in India under the new GST regime. The first two digits of this identification code represent the state
code. For example, "29" in the GSTIN "29BFEQB4818G1Z5" is the state code for Karnataka.

Procedure

1. Import the state codes by running the Import States for Tax Mapping data import task.
2. Add the state code values to the addresses of the supplier locations in India using one of the following options:

○ Import Suppliers data import task. For details about defining supplier locations, see Supplier location data
(consolidated file) data import or Supplier data import (legacy import).
○ From the Supplier Manager Suppliers task in Ariba Administrator.
3. (For SAP ERP only) Define the state codes for the plants using the Import Plants Data task. For more
information, see Import Plants Data.
4. Define the HSN and SAC codes in the CommodityCode.csv file used by the Import System Commodity
Codes task, and then run the task.

 Note

The domain name for the HSN and SAC codes in the SAP Ariba solution is HSNSAC.

The Import System Commodity Codes data import task creates hierarchical relationships between related
commodity codes.

The following is a sample of the CommodityCode.csv file consisting of the HSN and SAC codes:

"UTF-8"
Domain,UniqueName,Name,ParentUniqueName,Enabled,AdhocClassification

Tax and charge configuration

48 PUBLIC How to configure India GST data for requisitions and invoices
 HSNSAC,"All","All Commodities",,"Yes",
HSNSAC,6205,MEN'S OR BOY'S SHIRTS,All,Yes,
HSNSAC,620520,MEN'S OR BOYS' SHIRTS OF COTTON,6205,Yes,
HSNSAC,62052000,MEN'S OR BOYS' SHIRTS OF COTTON NOS,620520,Yes,
HSNSAC,620530,MEN'S OR BOYS' SHIRTS OF MAN‐MADE FIBRES,6205,Yes,
HSNSAC,62053000,MEN'S OR BOYS' SHIRTS OF MAN‐MADE FIBRES NOS,620530,Yes,
HSNSAC,620590,SHIRTS OF OTHER TEXTILE MATERIALS,6205,Yes,
HSNSAC,62059010,MEN'S OR BOY'S SHIRTS OF SILK,620590,Yes,

5. Define the mapping between the United Nations Standard Products and Services Code (UNSPSC) code and
the HSN and SAC codes in the ClassificationCodeMap.csv file used by the Import Classification Code
Relationship task.

The following is a sample of the ClassificationCodeMap.csv file consisting of HSN and SAC codes:

"UTF-8"
DomainFrom,ValueFrom,DomainTo,ValueTo
"HSNSAC","620520","unspsc","53101602"
"HSNSAC","620590","unspsc","531016"
"HSNSAC","84713010","unspsc","432115"
"HSNSAC","84713010","unspsc","43211507"
"HSNSAC","84714120","unspsc","43211512"

6. Run the Import Classification Code Relationship task to import the ClassificationCodeMap.csv file
consisting of the HSN and SAC codes. The Import Classification Code Relationship data import task maps
commodity codes in the UNSPSC and the HSNSAC domains.

Related Information

How to add state codes for supplier locations in Ariba Administrator [page 50]
Import States for Tax Mapping [page 81]
India GST information on requisitions and invoices [page 46]

Tax and charge configuration

How to configure India GST data for requisitions and invoices PUBLIC 49
How to add state codes for supplier locations in
Ariba Administrator

The state code for a supplier location is part of the supplier location address. You can add a state code using the
Supplier Manager Suppliers task in Ariba Administrator.

Prerequisites

Members of the Customer Administrator group can perform this task.

Import the state codes first by running the Import States for Tax Mapping data import task.

Context

You can also add state codes using the Import Suppliers data import task, see Supplier data import (consolidated
file import) or Supplier data import (legacy import).

State codes are required for configuring India Goods and Services Tax (GST) data for supplier locations in India.

Procedure

1. In Ariba Administrator, click Supplier Manager Suppliers and search for a supplier.
2. Click the link for the appropriate supplier in the search results.
3. On the Partioned Suppliers tab, click the name of the supplier.
4. On the Supplier Locations tab, click the link for a supplier location.
5. On the Supplier Address tab, select the appropriate value for the State Code dropdown.

Related Information

Import States for Tax Mapping [page 81]

Tax and charge configuration

50 PUBLIC How to add state codes for supplier locations in Ariba Administrator
Tax and charge configuration data import files

Members of the Tax Manager and Customer Administrator groups can import tax and charge data. This tax and
charge data is used to apply taxes and charges on requisitions, invoices, and invoice reconciliation line items and
approvables.

Tax information data setup requirement [page 51]

Tax and charge data import sequence [page 53]

Import Tax Types [page 55]

Import Tax Type Translations [page 56]

Import Tax Type Mappings [page 56]

Import Charge Types [page 58]

Import Charge Type Translations [page 59]

Import Tax Components [page 60]

Import Tax Component Translations [page 62]

Import Tax Codes [page 63]

Import Tax Code Translations [page 70]

Import Tax Code Lookups [page 70]

Import Tax Code Lookup Field Map [page 72]

Import Tax Code Lookup Field Map for Withholding Taxes [page 73]

Import Tax Rates By Tax Code Lookup [page 75]

Import External Tax Calculation Providers [page 76]

Import Company Code Tax Registration Numbers [page 79]

Import Supplier Tax Registration Numbers [page 80]

Import States for Tax Mapping [page 81]

Import Buyer Tax Registration Numbers [page 81]

Tax information data setup requirement

The following table lists the tax-related data import tasks required for the basic, enhanced, and third-party tax
configurations.

If your site is enabled for taxes and charges on requisitions and purchase orders using the enhanced tax
computation engine, you must load or manually set up all data required for tax computation.

If your site uses third-party tax computation for either requisitions or invoice reconciliations (but not both), you
must complete the data import tasks required for both the enhanced tax computation engine and the third-party

Tax and charge configuration

Tax and charge configuration data import files PUBLIC 51
tax computation system. This ensures that taxes can be calculated using the enhanced tax computation engine for
the document type (requisition or invoice reconciliation) for which taxes are not calculated externally.

Required for basic tax

configuration (applica­
ble to invoices and in­
voice reconciliations Required for enhanced tax Required for third-party
Task name only) computation tax calculation

Import Tax Types No Yes Yes

Import Tax Type Mappings Yes Yes No

Import Tax Components No Yes No

Import Tax Codes Yes Yes Yes

Import Tax Code Lookups Yes Yes No

Import Tax Code Lookup Field Map No Yes No

Import Tax Code Lookup Field Map for No Yes (if withholding taxes are Yes (if your site calcu­
Withholding Taxes applicable) lates withholding taxes
using the enhanced tax
computation engine,
controlled by
Application.Invoi
cing.UseNativeTax
EngineForWithhold
ingTax, which SAP
Ariba sets for you)

Import Tax Rates By Tax Code Lookup Yes No No

Import External Tax Calculation No No Yes

Providers

Import Company Code Tax Registration No No Yes

Numbers (Only for sites integrated with
SAP ERP)

Import Buyer Tax Registration Numbers No No Yes

(Only for sites integrated with PeopleSoft
ERP or Generic ERP)

Import Supplier Tax Registration No No Yes

Numbers

Related Information

Tax and charge data import sequence [page 53]

Tax and charge configuration

52 PUBLIC Tax and charge configuration data import files
Taxes in SAP Ariba Procurement solutions [page 6]
Before setting up your tax tables [page 32]
Topics about managing tax data in Ariba Administrator [page 34]

Tax and charge data import sequence

To successfully import tax and charge data, you run the import tasks in a defined sequence. After your tax and
charge data is defined, you can start importing requisitions containing taxes, discount, and charges.

Sequence for switching from the basic tax configuration to the enhanced tax computation
engine

The master data used by these import tasks must already be defined in your site before you run these tasks. For
example, purchasing units must be defined in your site before you import tax components.

If you're using third-party tax calculation, see also Tax information data setup requirement [page 51]. That topic
describes which tax-related import tasks are required.

1. Import Tax Types

2. Import Tax Type Translations
3. Import Tax Type Mappings
4. Import Charge Types
5. Import Charge Type Translations
6. Import Tax Components
7. Import Tax Component Translations
8. Import Tax Codes
9. Import Tax Code Translations
10. Import Tax Code Lookups
11. Import Tax Code Lookup Field Map
12. Import Tax Code Lookup Field Map for Withholding Taxes
13. Import Purchase Order ID with Line Numbers (SAP variants)
14. Import Change Purchase Order ID with Line Numbers (SAP variants)

Sequence for new SAP Ariba sites

If your site is new and doesn't have any transactional data yet, follow the sequence in the following table to import
tax data and related master data.

If you're using third-party tax calculation, see also Tax information data setup requirement [page 51]. That topic
describes which tax-related import tasks are required.

Tax and charge configuration

Tax and charge configuration data import files PUBLIC 53
Generic ERP System SAP ERP PeopleSoft ERP

1. Import Tax Types (required for en­ 1. Import Tax Types (required for en­ 1. Import Tax Types (required for en­
hanced tax computation only) hanced tax computation only) hanced tax computation only)
2. Import Tax Type Translations 2. Import Tax Type Translations 2. Import Tax Type Translations
3. Import Tax Type Mappings 3. Import Tax Type Mappings 3. Import Tax Type Mappings
4. Import Charge Types 4. Import Charge Types 4. Import Charge Types
5. Import Charge Type Translations 5. Import Charge Type Translations 5. Import Charge Type Translations
6. Import Purchasing Units 6. Import Purchasing Units 6. Import Purchasing Units
7. Import Accounts 7. Import Company Codes 7. Import SetIDs
8. Import Companies 8. Import Account Categories 8. Import Account Types
9. Import Business Units 9. Import Assets 9. Import Accounts
10. Import Cost Centers 10. Import Cost Centers 10. Import Departments
11. Import Products 11. Import General Ledgers 11. Import Products
12. Import Projects 12. Import Internal Order Codes 12. Import Projects
13. Import Accounting Regions 13. Import WBS Elements 13. Import Supplier Organizations
14. Import Subaccounts 14. Import Plants Data 14. Import Payment Terms
15. Import Tax Components (required 15. Import Tax Components (required 15. Import Suppliers
for enhanced tax computation only) for enhanced tax computation only) 16. Import ERP Commodity Codes
16. Import Tax Component 16. Import Tax Component 17. Import Business Units
Translations Translations 18. Import GL Business Units
17. Import Tax Codes 17. Import Tax Codes 19. Import Statistics
18. Import Tax Code Translations 18. Import Tax Code Translations 20. Import Tax Components (required
19. Import ERP Commodity Codes 19. Import ERP Commodity Codes for enhanced tax computation only)
20. Import Payment Terms 20. Import Supplier Organizations 21. Import Tax Codes
21. Import Supplier Organizations 21. Import Payment Terms 22. Import Tax Code Translations
22. Import Suppliers 22. Import Suppliers 23. Import Tax Code Lookups
23. Import Tax Code Lookups 23. Import Tax Code Lookups 24. Import Tax Rates by Tax Code
24. Import Tax Rates by Tax Code 24. Import Tax Rates by Tax Code Lookup (required for basic tax con­
Lookup (required for basic tax con­ Lookup (required for basic tax con­ figuration only)
figuration only) figuration only) 25. Import Tax Code Lookup Field Map
25. Import Tax Code Lookup Field Map 25. Import Tax Code Lookup Field Map (required for enhanced tax compu­
(required for enhanced tax compu­ (required for enhanced tax compu­ tation only)
tation only) tation only) 26. Import Tax Code Lookup Field Map
26. Import Tax Code Lookup Field Map 26. Import Tax Code Lookup Field Map for Withholding Taxes (required for
for Withholding Taxes (required for for Withholding Taxes (required for enhanced tax computation only)
enhanced tax computation only) enhanced tax computation only)

Related Information

Before setting up your tax tables [page 32]

Tax information data setup requirement [page 51]
Taxes in SAP Ariba Procurement solutions [page 6]
Topics about managing tax data in Ariba Administrator [page 34]

Tax and charge configuration

54 PUBLIC Tax and charge configuration data import files
Import Tax Types
Use this task to import tax types for SAP Ariba Procurement solutions. You use tax types to create tax components
or to add taxes to invoices. To succesfully send and receive purchase orders and invoices containing taxes to and
from Ariba Network, also import tax type mappings using the Import Tax Type Mappings task.

Related Information

Import Tax Type Translations [page 56]

Import Tax Type Mappings [page 56]
Tax and charge data import sequence [page 53]

Import Tax Types: Sample File

The table below describes the fields in the TaxType.csv file required to run this task. This file can be used for all
variants.

Field Required Description Sample Value

UniqueName Yes String. The unique name of EducCESS

the tax type defined in SAP
Ariba Procurement solutions

Name Yes MultiLingualString. The name Education CESS

of the tax type. This is dis­
played on the user interface.

Category Yes Integer. The category of the 2

tax type. This value is 2 for in­
direct taxes and 64 for with­
holding taxes.

Tax and charge configuration

Tax and charge configuration data import files PUBLIC 55
Import Tax Type Translations
This task enables you to import translations for the tax types imported using the Import Tax Types task. The
translated tax type names are displayed on the user interface. Before you run this task, ensure that tax types have
been defined in the site.

Import Tax Type Translations: Sample File

The table below describes the fields in the TaxType.csv file used to import translations for tax types. This file can
be used for all ERP systems.

Field Required Description Sample Value

UniqueName Yes String. The unique identifier of EducCESS

the tax type. This value must
match a value in the
TaxType.csv file used to
import tax types.

Name No MultiLingualString. The trans­ SalesTax

lated name of the tax type.
This is displayed on the user
interface.

Language Yes String. The language to which French

the tax type name has been
translated.

Import Tax Type Mappings

The Import Tax Type Mappings data import task maps the tax types defined in SAP Ariba Procurement solutions
to those defined in Ariba Network. It reads data from the TaxTypeMap.csv file. This task is required for
successfully exchanging purchase orders and invoices between SAP Ariba Procurement solutions and Ariba
Network.

Tax and charge configuration

56 PUBLIC Tax and charge configuration data import files
Tax Line Type Descriptions

The following table describes the tax-related procurement line types in the default configuration.

Tax Line Type Description

SalesTax (SAP and Generic only) Sales tax. A tax that is imposed on retail sales of tangible personal prop­
erty and certain services.

UseTax (SAP and Generic only) Use tax. A tax that is imposed on the use, storage, or consumption of
tangible personal property.

SUTTax (PeopleSoft only) Sales/use tax. Sales tax is a tax that is imposed on retail sales of tangible per­
sonal property and certain services. Use tax is a tax that is imposed on the use, storage, or con­
sumption of tangible personal property.

VATTax Value-added tax (VAT). A general consumption tax that is assessed on the value added to goods
and services at each stage in the production and distribution chain.

GSTTax Goods and services tax (GST). A value-added tax on the sale of goods and services that exists
some geographies.

PSTTax Provincial sales tax (PST). A tax imposed on the consumers of goods and services in Canadian
provinces.

HSTTax Harmonized sales tax. A single harmonized value-added tax that replaced the provincial sales
taxes and the federal goods and services taxes in Nova Scotia, New Brunswick, Newfoundland,
and Labrador.

QSTTax Quebec provincial sales tax (QST). A sales tax imposed on retail sales in Quebec.

WHTTax Withholding tax. In certain geographies, this type of tax is required for self-employed suppliers
and is generally paid by the buying organization to the state or government tax authorities on
behalf of the supplier. The tax percentage rate or tax amount must be entered as a negative
amount.

Withholding taxes are subtracted from the invoice total. Withholding taxes cannot be applied at
the header level and accruals do not apply to withholding tax, therefore, accrual payments are
not created.

Import Tax Type Mappings: Sample File

The table below describes the fields in the TaxTypeMap.csv file required to run this task. This file can be used for
all variants.

Field Required Description Sample Value

Name Yes String. The unique name of sales

the tax type in SAP Ariba Pro­
curement solutions

TaxLineType Yes String. The unique name of SUTTax

the tax line type.

Tax and charge configuration

Tax and charge configuration data import files PUBLIC 57
Following is an example of the TaxTypeMap.csv file for sites integrated with generic ERP systems:

UTF8
Name,TaxLineType
sales,SalesTax
vat,VATTax
gst,GSTTax
pst,PSTTax
hst,HSTTax
qst,QSTTax
withholdingTax,WHTTax

Following is an example of the TaxTypeMap.csv file for sites integrated with SAP ERP systems:

UTF8
Name,TaxLineType
sales,SalesTax
vat,VATTax
gst,GSTTax
pst,PSTTax
hst,HSTTax
qst,QSTTax
withholdingTax,WHTTax

Following is an example of the TaxTypeMap.csv file for sites integrated with PeopleSoft ERP systems:

UTF8
Name,TaxLineType
sales,SUTTax
vat,VATTax
gst,GSTTax
pst,PSTTax
hst,HSTTax
qst,QSTTax
withholdingTax,WHTTax

Import Charge Types

This task enables you import charge types using a CSV file. You can then use these charge types to apply charges
on requisitions and invoices.

Import Charge Types: Sample File

The table below describes the fields in the ChargeType.csv file used to import charge types. This file can be used
for all ERP systems.

Tax and charge configuration

58 PUBLIC Tax and charge configuration data import files
 Field Name Required Description Sample Value

UniqueName Yes String. The unique name of HMHCharge

the charge type. Charge types
can be updated or deleted
based on their unique name.

Name Yes MultiLingualString. The name Hazardous Material Handling

of the charge. This value is dis­
played on the user interface.

Description No MultiLingualString. The de­ Charge type for hazardous

scription of the charge type, materials such as radioactive
such as its purpose and ap­ materials and chemicals
plicability

ANChargeName No String. The unique name used HazardousMatHandling

for the charge type in Ariba
Network. If this value is not
specified during the import
operation, the UniqueName
specified for the charge type is
used as its AN Charge Name.

Import Charge Type Translations

This new import task enables you to import translations for the charge types imported using the Import Charge
Types task. The translated charge type names are displayed on the user interface.

Import Charge Type Translations: Sample File

The table below describes the fields in the ChargeType.csv file used to import translations for charge type names
and descriptions. This file can be used for all ERP systems.

Field Name Required Description Sample Value

UniqueName Yes String. The unique identifier of ShippingCharge

the charge type. This value
must match a value in the
ChargeType.csv file used
to import charge types.

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Tax and charge configuration data import files PUBLIC 59
Field Name Required Description Sample Value

Description Yes MultiLingualString. The trans­ Frais de port

lated description of the charge
type. This is displayed on the
user interface.

Name Yes MultiLingualString. The trans­ Frais de port

lated name of the charge type.
This is displayed on the user
interface.

Language Yes String. The language to which French

the charge type name and de­
scription has been translated.

Import Tax Components

This task enables you to import tax components. The imported tax components are displayed on the Tax
Components page in the Tax Manager workspace. You can view and edit these tax components using the user
interface. You can also add these tax components to tax codes. When updating the tax components, avoid
changing the tax type assigned to the tax components. Though this action is allowed, it could lead to invoice
exceptions in the invoices that are being reconciled. Before you run this task, you must import the tax types.

Import Tax Components: Sample File

The table below describes the fields in the CSV file required to import tax components. This file can be used for all
ERP systems.

Field Required Description Sample Value

UniqueName Yes String. The unique name of USA_Excise_Petroleum

the tax component. A tax
component can be updated or
deactivated using this unique
name.

Name Yes MultiLingualString. The user- Excise_Petroleum

specified name for the tax
component. Multiple tax com­
ponents can have the same
name.

Tax and charge configuration

60 PUBLIC Tax and charge configuration data import files
 Field Required Description Sample Value

Description No MultiLingualString. Additional 5 USD per unit excise duty ap­

information about the tax plicable on petroleun products
component, such as its pur­ in USA
pose or applicability

TaxType Yes String. The unique name of Excise

the tax type. The value speci­
fied here must match a tax
type defined using the Import
Tax Types task. It is advised
not to modify this value during
the update operation.

TaxRate Yes BigDecimal. The per unit or 12

percentage rate using which
the tax is calculated. For with­
olding taxes, this value must
be less than or equal to zero.

AbatementPercent No BigDecimal. The percentage of 100

the base amount on which the
tax is applied

AppliedAs Yes Integer. Defines how the tax 0

rate is applied to calculate tax
amounts. This can be percent­
age or per unit. 0 denotes per­
centage while 1 denotes per
unit.

Country Yes String. The unique name of US

the country/region for which
the tax component is applica­
ble

State No String. The state for which the Tx

tax component is applicable.
This must be the unique name
of the state for states in the
USA.

EffectiveDate Yes Date. The date from which the 1/1/2014

tax component is effective, in
MM/DD/YYYY format

ExpiryDate No Date. The date on which the 12/31/2015

tax component expires, in
MM/DD/YYYY format

Tax and charge configuration

Tax and charge configuration data import files PUBLIC 61
Field Required Description Sample Value

IsDeductible No Boolean. Specifies whether Yes/No

the tax component is deducti­
ble. You can specify account­
ing information for deductible
tax components.

Purchasing Unit/ No String. The unique identifier of US003

Plant/SetID the purchasing unit for which
the tax component is applica­
ble. The field name varies
based on the ERP system
used. For generic ERP system,
it is Purchasing Unit, for SAP,
it is Plant, and for PeopleSoft,
it is Set ID. If you specify a
value in this field, the tax com­
ponent is not applied on line
items or approvables from
other purchasing units, plants,
or Set IDs.

Accounting fields No These fields can be used to

specify accounting informa­
tion for deductible tax compo­
nents. Accounting information
specified for non-deductible
tax components is ignored.
The field names of accounting
fields vary based on the ERP
system used.

Import Tax Component Translations

This task enables you to import the translated names of tax components using a CSV file. Before you run this task,
ensure that tax components have been defined in the system.

Import Tax Component Translations: Sample File

The table below describes the fields in the TaxComponentTranslations.csv file used to import translations for
tax components' names. This file can be used for all ERP systems.

Tax and charge configuration

62 PUBLIC Tax and charge configuration data import files
 Field Name Required Description Sample Value

UniqueName Yes String. The unique name of SalesTax_Petroleum

the tax component as defined
in the
ImportTaxComponent.c
sv file.

Description Yes MultiLingualString. The trans­ La taxe de vente pour les pro­
lated description of the tax duits pétroliers
component. This is displayed
on the user interface

Name Yes MultiLingualString. The trans­ TC_USA_Tx-USA_Oh_10001

lated name of the tax compo­
nent. This is displayed on the
user interface.

Language Yes String. The language to which French

the name and description
have been translated

Import Tax Codes

You can import tax codes using the TaxCodeHeader.csv and TaxCodeDetails.csv files. The imported tax
codes are displayed on the Tax Codes page in the Tax Manager workspace. You can view and edit these tax codes
using the user interface. Before you import tax codes, ensure that the tax components used by the tax codes have
been defined in the system.

Import Tax Codes: files for Generic variants

Field descriptions for the files TaxCodeHeader.csv and TaxCodeDetails.csv explain the data that defines tax
codes in sites configured as Simple Generic variants.

TaxCodeHeader.csv file

The table below describes the fields in the TaxCodeHeader.csv file required to import tax codes for generic ERP
systems.

Tax and charge configuration

Tax and charge configuration data import files PUBLIC 63
Field Name Required Description Sample Value

UniqueName Yes String. The unique name of TC_USA_Tx-USA_Oh_10001

the tax code. A tax code can
be updated or deactivated us­
ing this unique name.

Name No MultiLingualString. The user- USA_TexasToOhio

specified name of the tax
code. This is displayed on the
user interface. Multiple tax co­
des can have the same name.

Description No MultiLingualString. Additional Tax code for IT equipment

information about the tax shipped from Texas, USA to
code, such as its purpose or Ohio, USA
applicability

Country No String. The unique identifier of US

the country for which the tax
code is applicable.

State No String. The state for which the OH

tax code is applicable. This
must be the unique name of
the state for states in the USA.

PurchasingUnit No String. The unique identifier of US003

the purchasing unit for which
the tax code is applicable. Cur­
rently, the value specified for
this field is not used by the
system.

TaxCodeDetails.csv file

The table below describes the fields in the TaxCodeDetails.csv file required to import tax codes for generic ERP
systems.

Field Name Required Description Sample Value

Parent.UniqueName Yes String. The unique name of TC_USA_Tx-USA_Oh_10001

the tax code defined in the
TaxCodeHeader.csv file

Tax and charge configuration

64 PUBLIC Tax and charge configuration data import files
 Field Name Required Description Sample Value

Sequence Yes String. The sequence of a tax B

component in the tax code.
Sequences enable you to de­
fine tax on tax and cumulative
taxes. The sequence must be
a single uppercase Latin letter
or a combination of two up­
percase Latin letters. This
value must be unique for a tax
code.

Component Yes String. The unique name of CESS_USA_24

the tax component

AppliedOn Yes String. The amount on which BaseAmount+A

the tax is applied. You can
specify a formula here using
the keywords BaseAmount,
NetAmount, Quantity, or
the sequences of other tax
components in the tax code.
BaseAmount refers to the
amount before applying the
discount while NetAmount is
the amount after applying the
discount.

Import Tax Codes: files for SAP variants

Field descriptions for the files TaxCodeHeader.csv and TaxCodeDetails.csv explain the data that defines tax
codes sites integrated with SAP ERP.

TaxCodeHeader.csv file

The table below describes the fields in the TaxCodeHeader.csv file required to import tax codes for SAP ERP
systems.

Tax and charge configuration

Tax and charge configuration data import files PUBLIC 65
Field Name Required Description Sample Value

MWSKZ Yes String. The unique name of TC_USA_Tx-USA_Oh_10001

the tax code. A tax code can
be updated or deactivated us­
ing this unique name.

Name No MultiLingualString. The user- USA_TexasToOhio

specified name of the tax
code. This is displayed on the
user interface. Multiple tax co­
des can have the same name.

TEXT1 No MultiLingualString. Additional Tax code for IT equipment

information about the tax shipped from Texas, USA to
code, such as its purpose and Ohio, USA
applicability

LAND1 Yes String. The unique identifier of US

the country/region for which
the tax code is applicable

State No String. The state for which the OH

tax code is applicable. This
must be the unique name of
the state for states in the USA.

TaxCodeDetails.csv file

The table below describes the fields in the TaxCodeDetails.csv file required to import tax codes for SAP ERP
systems.

Field Name Required Description Sample Value

MWSKZ No String. The unique name of TC_USA_Tx-USA_Oh_10001

the tax code as defined in the
TaxCodeHeader.csv file.

Tax and charge configuration

66 PUBLIC Tax and charge configuration data import files
 Field Name Required Description Sample Value

Sequence Yes String. The sequence of a tax B

component in the tax code.
Sequences enable you to de­
fine tax on tax and cumulative
taxes. The sequence must be
a single uppercase Latin letter
or a combination of two up­
percase Latin letters. This
value must be unique for a tax
code.

Component Yes String. The unique name of CESS_USA_24

the tax component

AppliedOn Yes String. The amount on which BaseAmount+A

the tax is applied. You can
specify a formula here using
the keywords BaseAmount,
NetAmount, Quantity, or
the sequences of other tax
components in the tax code.
BaseAmount refers to the
amount before applying the
discount while NetAmount is
the amount after applying the
discount.

Import Tax Codes: files for PeopleSoft variants

Field descriptions for the files TaxCodeHeader.csv and TaxCodeDetails.csv explain the data that defines tax
codes sites integrated with PeopleSoft.

TaxCodeHeader.csv file

The table below describes the fields in the TaxCodeHeader.csv file required to import tax codes for PeopleSoft
ERP systems.

Tax and charge configuration

Tax and charge configuration data import files PUBLIC 67
Field Name Required Description Sample Value

TAX_CD Yes String. The unique name of TC_USA_Tx-USA_Oh_10001

the tax code. A tax code can
be updated or deactivated us­
ing this unique name.

TAX_CD_DESCR_ Yes MultiLingualString. The user- USA_TexasToOhio

specified name of the tax
code. This is displayed on the
user interface. Multiple tax co­
des can have the same name.

SETID Yes String. The unique internal FEDRL

identifier of a SetID for the tax
code. The SetID must be de­
fined in the SetId.csv file.

SETID_TAX_CD_ Yes String. The concatenated FEDRL:TC_USA_Tx-

value of the SetID and the USA_Oh_10001
unique name of the tax code

DESCR No MultiLingualString. Additional Tax code for IT equipment

information about the tax shipped from Texas, USA to
code, such as its purpose or Ohio, USA
applicability

Country No String. The unique identifier of US

the country/region for which
the tax code is applicable

State No String. The state for which the OH

tax code is applicable. This
must be the unique name of
the state for states in the USA.

TaxCodeDetails.csv file

The table below describes the fields in the TaxCodeDetails.csv file required to import tax codes for PeopleSoft
ERP systems.

Tax and charge configuration

68 PUBLIC Tax and charge configuration data import files
 Field Name Required Description Sample Value

SETID_TAX_CD_ No String. The concatenated FEDRL:TC_USA_Tx-

value of the SetID and the USA_Oh_10001
unique name of the tax code,
as defined in the
TaxCodeHeader.csv file

Sequence Yes String. The sequence of a tax B

component in the tax code.
Sequences enable you to de­
fine tax on tax and cumulative
taxes. The sequence must be
a single uppercase Latin letter
or a combination of two up­
percase Latin letters. This
value must be unique for a tax
code.

Component Yes String. The unique name of CESS_USA_24

the tax component

AppliedOn Yes String. The amount on which BaseAmount+A

the tax is applied. You can
specify a formula here using
the keywords BaseAmount,
NetAmount, Quantity,
and the sequences of other
tax components in the tax
code. BaseAmount refers to
the amount before applying
the discount while
NetAmount is the amount
after applying the discount.

Tax and charge configuration

Tax and charge configuration data import files PUBLIC 69
Import Tax Code Translations
This task enables you to import translations for the names of the tax codes imported using the Import Tax Codes
task. The translated tax code names are displayed on the user interface. Before you run this task, ensure that tax
codes have been defined in the site.

Import Tax Code Translations: Sample File

The table below describes the fields in the TaxCode.csv file used to import translations for tax codes. This file can
be used for all ERP systems.

Field Name Required Description Sample Value

UniqueName Yes String. The unique name of TC_USA_Tx-USA_Oh_10001

the tax code as defined in the
TaxCodeHeader.csv file.

Description Yes MultiLingualString. The trans­ Taxes pour les produits pétro­
lated description of the tax liers en USA
code. This is displayed on the
user interface

Name Yes MultiLingualString. The trans­ TC_USA_Tx-USA_Oh_10001

lated name of the tax code.
This is displayed on the user
interface.

Language Yes String. The language to which French

the name and description
have been translated

Import Tax Code Lookups

This task enables you to import tax code lookups. The system applies tax codes on requisition, invoice, and invoice
reconciliation line items and approvables, based on the tax code lookup.

Import Tax Code Lookups: Sample File

The table below describes the fields in the TaxCodeLookup.csv file required to import tax code lookups.
Additional customizable fields can be added to this file.

Tax and charge configuration

70 PUBLIC Tax and charge configuration data import files
 Field Name Required Description Sample Value

Description No MultiLingualString. Additional Tax code applicable on IT

information about the tax equipment being shipped
code lookup, such as, the sce­ from Texas, USA to Ohio, USA
nario in which a specific tax
code is applicable

CommodityCode Yes String. The commodity code 10001

of the line item

PurchasingUnit No String. The unique identifier US003

of the purchasing unit of the
line item.

ShipFromCountry Yes String. The unique identifier US

of the country/region from
which the item is shipped.
This is typically the country/
region where the supplier is
located.

ShipFromState Yes String. The state from which Tx

the item is shipped. This is
typically the state where the
supplier is located.

ShipToCountry Yes String. The unique identifier US

of the country/region to which
the item is shipped

ShipToState Yes String. The state to which the OH

item is shipped

SupplierLocation No String. The unique internal 4815

identifier of a supplier loca­
tion. This value must match a
supplier location defined in
the
SupplierLocation.csv
file. This field is mainly used
to identify the withholding
taxes applicable on a line item
or approvable.

Rank Yes Integer. The priority of the tax 100

code lookup entry in case of
multiple matches. Lower the
rank, higher the priority.

Tax and charge configuration

Tax and charge configuration data import files PUBLIC 71
Field Name Required Description Sample Value

EffectiveDate No Date. The date from which the 1/1/2014

tax code lookup is effective

ExpiryDate No Date. The date on which the 31/12/2015

tax code lookup expires

IsAccrual No Boolean. Specifies whether Yes/No

this tax needs to be accrued.
Accrued taxes are not paid to
the supplier, and are stored in
a separate account and paid
directly by the buyer.

TaxCode Yes String. The unique identifier TC_USA_Tx-USA_Oh_10001

of the tax code that should be
applied to the line item or ap­
provable if the above fields
match

SystemCommodityCode No String. The unique internal 12001

identifier of the system com­
modity code

This field is available only for

generic ERP systems.

SystemCommodityCodeD No String. The domain of the sys­ unspsc

omain tem commodity code

This field is available only for

generic ERP systems.

Import Tax Code Lookup Field Map

This task lets you import tax code lookup field maps to map the custom fields in the tax code lookup to line item
fields or to change the default mapping defined for the standard tax code lookup fields.

Default tax code lookup field maps are defined in the system for standard tax code lookup fields.

The system uses this mapping information to apply indirect tax codes on requisition, invoice, and invoice
reconciliation line items. The imported tax code lookup field maps are displayed on the Tax Code Lookup Field
Maps page in the Tax Manager workspace. You can view, edit, activate, and deactivate these tax code lookup field
maps using the user interface. Before you import tax code lookup field maps, ensure that the tax code lookups
have been defined in the system.

Tax and charge configuration

72 PUBLIC Tax and charge configuration data import files
Import Tax Code Lookup Field Map: Sample File

The table below describes the fields in the TaxCodeLookupFieldMapping.csv file required to import tax code
lookup field maps. This file can be used for all ERP systems. For information on the default tax code lookup field
maps defined in the system, see What are tax code lookups and tax code lookup field maps? [page 39].

Field Name Required Description Sample Value

LineItemType Yes String. The type of the line ariba.purchasing.core.ReqLi­

item – requisition, invoice, or neItem
invoice reconciliation. Valid
values for this field are
ariba.purchasing.cor
e.ReqLineItem,
ariba.purchasing.cor
e.InvoiceLineItem, and
ariba.purchasing.cor
e.InvoiceReconciliat
ionLineItem.

DottedFieldPath Yes String. The dotted path of the ProcureLineItemCollec­

line item field that needs to be tion.ProcurementUnit
mapped to the tax code
lookup field

FieldName Yes String. The tax code lookup ProcurementUnit

field for which you want to de­
fine mapping information. The
value specified here must
match a field name defined in
the TaxCodeLookup.csv
file.

Import Tax Code Lookup Field Map for Withholding

Taxes
This task lets you import tax code lookup field maps for withholding taxes to define customized mapping for the
fields in the tax code lookup to line item fields of invoices and invoice reconciliation documents.

The system uses this mapping information to apply withholding tax codes on invoices and invoice reconciliation
documents at the header and line item level. The imported tax code lookup field maps are displayed on the Tax
Code Lookup Field Map for Withholding Taxes page in the Tax Manager workspace.

You can view, edit, activate, and deactivate these tax code lookup field maps using the user interface. Before you
import tax code lookup field maps for withholding taxes, ensure that the tax code lookups have been defined in the
system.

Tax and charge configuration

Tax and charge configuration data import files PUBLIC 73
Import Tax Code Lookup Field Map for Withholding Taxes:
Sample File
The table below describes the fields in the WHTLookupFieldMapping.csv file required to import tax code lookup
field maps for withholding taxes. This file can be used for all ERP systems. For information on the default tax code
lookup field maps defined in the system, see What are tax code lookups and tax code lookup field maps? [page 39]

Field Name Required Description Sample Value

ApprovableType Yes String. The approvable line ariba.purchasing.cor

item type for which you want e.InvoiceReconciliat
to define the tax code lookup ionLineItem
field map. Valid values for this
field are
ariba.purchasing.cor
e.InvoiceLineItem and
ariba.purchasing.cor
e.InvoiceReconciliat
ionLineItem.

DottedFieldPath Yes String. The dotted path of the SupplierLocation

line item field that needs to be
mapped to the tax code
lookup field

FieldName Yes String. The tax code lookup SupplierLocation

field for which you want to de­
fine mapping information. The
value specified here must
match a field name defined in
the TaxCodeLookup.csv
file.

Tax and charge configuration

74 PUBLIC Tax and charge configuration data import files
Import Tax Rates By Tax Code Lookup
This task defines the tax rate lookup using the tax code table. It reads data from the
TaxRateLookupByTaxCode.csv file.

TaxRateLookupByTaxCode.csv: PeopleSoft Example

TaxRateLookupByTaxCode.csv has six columns: SETID_TAX_CD_, TAX_PCT, SETID, Rank, EFFDT, and
TAX_TYPE.

Following is an example of TaxRateLookupByTaxCode.csv for PeopleSoft:

UTF8
SETID_TAX_CD_,TAX_PCT,SETID,Rank,EFFDT,TAX_TYPE
FEDRL:ALC,0.02500000,FEDRL,0,1/1/1900,SUTTax
FEDRL:BOS,0.05000000,FEDRL,0,1/1/1900,SUTTax
FEDRL:CA,0.06000000,FEDRL,0,1/1/1900,SUTTax
FEDRL:CCC,0.01500000,FEDRL,0,2/25/2002,SUTTax

TaxRateLookupByTaxCode.csv: SAP Example

TaxRateLookupByTaxCode.csv has seven columns: Rank, TaxCode, Country, TaxType, Plant, TaxRate, and
EffectiveDate.

Following is an example of TaxRateLookupByTaxCode.csv for SAP:

UTF8
Rank,TaxCode,Country,TaxType,Plant,TaxRate,EffectiveDate
0,I0,US,SalesTax,,0,Wed Mar 01 00:00:00 GMT+05:30 2000
0,I1,US,SalesTax,3000,0.04,Wed Mar 01 00:00:00 GMT+05:30 2000
0,I1,US,SalesTax,3002,0.06,Wed Mar 01 00:00:00 GMT+05:30 2000
0,I1,US,SalesTax,3500,0.0625,Wed Mar 01 00:00:00 GMT+05:30 2000
0,U0,US,UseTax,,0,Wed Mar 01 00:00:00 GMT+05:30 2000
0,U1,US,UseTax,3000,0.04,Wed Mar 01 00:00:00 GMT+05:30 2000
0,V1,JP,VATTax,,0.05,Wed Mar 01 00:00:00 GMT+05:30 2000
0,V0,JP,VATTax,,0,Wed Mar 01 00:00:00 GMT+05:30 2000

TaxRateLookupByTaxCode.csv: Generic Example

TaxRateLookupByTaxCode.csv has seven columns: Rank, TaxCode, TaxType, TaxRate, EffectiveDate,
TaxName, and PurchasingUnit.

Following is an example of TaxRateLookupByTaxCode.csv for Generic:

UTF8
Rank,TaxCode,TaxType,TaxRate,EffectiveDate,TaxName,PurchasingUnit

Tax and charge configuration

Tax and charge configuration data import files PUBLIC 75
 0,CA - Sales Tax,SalesTax,0.0825,Wed Mar 01 00:00:00 GMT+05:30 2000,CA - Sales Tax,
600:OU
0,CA VAT TAX,VATTax,0.05,Wed Mar 01 00:00:00 GMT+05:30 2002,CA VAT TAX,600:OU
0,SEN SALES TAX10,SalesTax,0.1,Wed Mar 01 00:00:00 GMT+05:30 2000,SEN SALES
TAX10,600:OU

Import External Tax Calculation Providers

The Import External Tax Calculation Providers task specifies the company codes and the approvable documents
associated with the company codes for which taxes need to be determined in third-party tax calculation systems.

This task uses the TaxCalculationProvider.csv file to import the details of the external tax calculation
providers and the company codes eligible for external tax calculation.

Import External Tax Calculation Providers: sample files

Sample excerpts of the TaxCalculationProviderExport.csv file show the data to import for defining third-
party tax calculation systems if your site is integrated with them.

Sample TaxCalculationProviderExport.csv file format for SAP variants

The following table describes the fields in the TaxCalculationProviderExport.csv file for sites integrated
with SAP ERP:

Field name Required Type and description Sample value

COMPANYCODE Yes String. The unique internal 3000

identifier of a company code.
 Note
We recommend that you
define the mappings for
SAP ERP-integrated sites
based on the company
code, instead of the
PROCUREMENTUNIT
field.

Tax and charge configuration

76 PUBLIC Tax and charge configuration data import files
 Field name Required Type and description Sample value

TAXSOURCE Yes String. The name of the third- ThomsonReuters or

party system that provides the Vertex
tax calculation service.
 Note
For custom implementa­
tion, specify the value as
Custom.

PROCUREMENTUNIT No String. The unique internal US2001

identifier of a purchasing unit.
This value must match a pur­
chasing unit defined in the
PurchasingUnit.csv file
used by the Import
Purchasing Units task.

APPROVABLENAME Yes String. The approvable type ariba.purchasing.core.Requisi­

for which tax can be calcu­ tion
lated in an external tax calcu­
lation system.

Example:

"UTF-8"
COMPANYCODE,TAXSOURCE,PROCUREMENTUNIT,APPROVABLENAME
"3000","ThomsonReuters",,"ariba.invoicing.core.InvoiceReconciliation"
"3000","ThomsonReuters",,"ariba.purchasing.core.Requisition"

Sample TaxCalculationProviderExport.csv file format for PeopleSoft variants

The following table lists the fields in the TaxCalculationProviderExport.csv file for sites integrated with
PeopleSoft ERP:

Field name Required Type and description Sample value

GLBusinessUnit Yes String. The unique internal 3000

identifier of a company code.

Tax and charge configuration

Tax and charge configuration data import files PUBLIC 77
Field name Required Type and description Sample value

TAXSOURCE Yes String. The name of the third- ThomsonReuters or

party system that provides the Vertex
tax calculation service.
 Note
For custom implementa­
tion, specify the value as
Custom.

PROCUREMENTUNIT No String. The unique internal US2001

identifier of a purchasing unit.
This value must match a pur­
chasing unit defined in the
PurchasingUnit.csv file
used by the Import
Purchasing Units task.

APPROVABLENAME Yes String. The approvable type ariba.purchasing.core.Requisi­

for which tax can be calcu­ tion
lated in an external tax calcu­
lation system.

Example:

"UTF-8"
PROCUREMENTUNIT,GLBusinessUnit,APPROVABLENAME,TAXSOURCE
"","US003","ariba.invoicing.core.InvoiceReconciliation","Vertex"
"","US003","ariba.purchasing.core.Requisition","Vertex"

Sample TaxCalculationProviderExport.csv file format for Generic variants

The following table lists the fields in the TaxCalculationProviderExport.csv file for sites configured as
Simple Generic variants:

Field name Required Type and description Sample value

PROCUREMENTUNIT Yes String. The unique internal US2001

identifier of a purchasing unit.
This value must match a pur­
chasing unit defined in the
PurchasingUnit.csv file
used by the Import
Purchasing Units task.

Tax and charge configuration

78 PUBLIC Tax and charge configuration data import files
 Field name Required Type and description Sample value

TAXSOURCE Yes String. The name of the third- ThomsonReuters or

party system that provides the Vertex
tax calculation service.
 Note
For custom implementa­
tion, specify the value as
Custom.

APPROVABLENAME Yes String. The approvable type ariba.purchasing.core.Requisi­

for which tax can be calcu­ tion
lated in an external tax calcu­
lation system.

Example:

"UTF-8"
PROCUREMENTUNIT,APPROVABLENAME,TAXSOURCE
"US100","ariba.invoicing.core.InvoiceReconciliation","Vertex"
"US100","ariba.purchasing.core.Requisition","Vertex"

Import Company Code Tax Registration Numbers

(Applicable only for sites integrated with SAP ERP) This task imports tax registration numbers for combinations of
company codes and countries/regions from SAP ERP.

The Import Company Code Tax Registration Numbers task uses the
CompanyCodeTaxRegistrationExport.csv file to import the tax registration numbers for company codes
associated with the appropriate country codes.

Import Company Code Tax Registration Numbers: Sample

File

The following table lists the fields in the CompanyCodeTaxRegistrationExport.csv file:

Field name Required Type and description Sample value

CompanyCode Yes String. The unique internal 3000

identifier for a company code.

Country Yes String. The unique country US

code for a country/region.

Tax and charge configuration

Tax and charge configuration data import files PUBLIC 79
Field name Required Type and description Sample value

TaxRegistrationNumbe Yes String. The tax registration VAT234432565

r number for the combination of
company code and
country.

The corresponding data export task named Export Company Code Tax Registration Numbers is available on the
Exports tab in the Data Import/Export task on Ariba Administrator.

Import Supplier Tax Registration Numbers

The Import Supplier Tax Registration Numbers task imports tax registration numbers for supplier-country/region
combinations from the external ERP system.

This task uses the SupplierTaxRegistration.csv file to import the tax registration numbers for the suppliers
based on their country codes.

Import Supplier Tax Registration Numbers: Sample File

The following table lists the fields in the SupplierTaxRegistration.csv file:

Field name Required Type and description Sample value

Supplier Yes String. The unique internal 0000000001

identifier for a supplier.

Country Yes String. The unique country US

code for a unique country/
region.

TaxRegistrationNumbe Yes String. The tax registration VAT234432565

r number for the combination of
supplier and country.

The corresponding data export task named Export Supplier Tax Registration Numbers is available on the Exports
tab in the Data Import/Export task on Ariba Administrator.

Tax and charge configuration

80 PUBLIC Tax and charge configuration data import files
Import States for Tax Mapping
The Import States for Tax Mapping task imports the states in India for which goods and services tax (GST)
information needs to be included on approvable documents.

Import States for Tax Mapping: Sample File

The Import States for Tax Mapping task uses the State.csv file to import the states and the state codes. The
following table lists the fields in the State.csv file:

Field name Required Type and description Sample value

Country Yes String. The unique country IN

code of the country/region to
which the state belongs.

Name Yes String. The name of the state. Karnataka

Uniquename Yes String. The unique internal IN-KA

identifier of the state based on
ISO 3166-2 standards for the
subdivisions or states of a
country.

The following is a sample of the State.csv file:

"UTF-8"
Country,Name,UniqueName
IN,Karnataka,IN-KA
IN,Maharashtra,IN-MH
IN,Tamil Nadu,IN-TN

 Note

This task is associated with a corresponding data export task under the Export tab on the Data Import/Export
page on Ariba Administrator.

Import Buyer Tax Registration Numbers

(Applicable for sites configured as PeopleSoft or Generic variants) This task imports tax registration numbers for
combinations of buyer organization units and countries/regions from the ERP system.

The Import Buyer Tax Registration Numbers task uses the BuyerTaxRegistration.csv file to import the tax
registration numbers for the organizational units associated with the appropriate country codes.

Tax and charge configuration

Tax and charge configuration data import files PUBLIC 81
Import Buyer Tax Registration Numbers: Sample files

Sample BuyerTaxRegistration.csv file format for PeopleSoft variants

The following table lists the fields in the BuyerTaxRegistration.csv file for sites integrated with PeopleSoft
ERP:

Field name Required Type and description Sample value

GLBusinessUnit Yes String. The unique internal 4000

identifier of a business unit.

Country Yes String. The unique country for US

a country/region.

TaxRegistrationNumbe Yes String. The tax registration TXIN234432565

r number for the combination of
GLBusinessUnit and
Country.

Example:

"UTF-8"
GLBusinessUnit,Country,TaxRegistrationNumber
"4000","US","TXIN234432565"

Sample BuyerTaxRegistration.csv file format for Generic variants

The following table lists the fields in the BuyerTaxRegistration.csv file for sites integrated with Generic ERP:

Field name Required Type and description Sample value

ProcurementUnit Yes String. The unique internal 4000

identifier of a purchasing unit.
This value must match a pur­
chasing unit defined in the
PurchasingUnit.csv file
used by the Import
Purchasing Units task.

Country Yes String. The unique country for US

a country/region.

Tax and charge configuration

82 PUBLIC Tax and charge configuration data import files
 Field name Required Type and description Sample value

TaxRegistrationNumbe Yes String. The tax registration TXIN234432565

r number for the combination of
GLBusinessUnit and
Country.

Example:

"UTF-8"
ProcurementUnit,Country,TaxRegistrationNumber
"4000","US","TXIN234432565"

The corresponding data export task named Export Buyer Tax Registration Numbers is available in the
Data Import/Export task in Ariba Administrator.

Tax and charge configuration

Tax and charge configuration data import files PUBLIC 83
Site configuration options for charges and
taxes

Some of the functionality for supplier contacts is controlled by configuration options that SAP Ariba Support sets
for you. These parameters apply to SAP Ariba Buying and Invoicing and SAP Ariba Invoice Management.
Application.Charge.Enabled (set by SAP Ariba Support)
This parameter specifies whether charge reconciliation is enabled in the user interface. If
this parameter is set to Yes, the commands and screens associated with charge
reconciliation are visible in the user interface. If this parameter is set to No, the commands
and screens associated with charge reconciliation are hidden in the user interface. The
default value is Yes.
Application.Charge.OverdueChargesWarningPeriod (set by SAP Ariba Support)
Specifies the number of days that SAP Ariba Buying and Invoicing waits before sending an
overdue charges notification message. The parameter takes an integer value. The default
value is 7.
Application.Invoicing.CalculateTaxesOnNetAmount (set by SAP Ariba Support)
Specifies whether line-level discounts are taken into account when percentage taxes are
calculated on invoices. This parameter does not apply to invoice reconciliation (IR)
documents.

● When set to Yes, percentage taxes are calculated on the invoice net amount (the invoice
base amount minus the discount). The taxable amount includes the discount.
● When set to No, percentage taxes are calculated on the invoice base amount.

Application.Invoicing.AllowExportingTaxSplitAccountings (set by SAP Ariba Support)

In SAP variants, specifies whether tax line split accounting is included in exported payment
requests. When set to Yes, split accounting information for all tax lines in the invoice
reconciliation document is included. This parameter applies to the following export tasks:
Export Payment Requests, Export Payment Requests with Advance Payments, Export
Payment Requests Asynchronously. It’s also applicable to sites using SAP Ariba Cloud
Integration Gateway.
Application.Invoicing.CXML.SendTaxCodeInIRCXML (set by SAP Ariba Support)
This parameter specifies whether or not tax codes are included in the tax summary section
of cXML invoice reconciliations sent to Ariba Network. If this parameter is set to Yes, the tax
codes are included in the tax summary. This parameter only applies to SAP-integrated sites
where Application.Invoicing.SendIRtoAN is set to Yes. The default value is No.

Application.Invoicing.EnableTaxesOnShippingAndHandlingItems (set by SAP Ariba Support)

This parameter specifies whether or not users can add shipping and special handling lines
on invoices and specify taxes for those lines. When this parameter is set to Yes, the Add
Shipping Item and Add Special Handling Item buttons appear on the Add Items page
when users are creating invoices. To add taxes to a shipping or special handling line, the
user selects Add Taxes at Line Level, which causes the Add Taxes button to appear next to
each line. The default setting is No.

Tax and charge configuration

84 PUBLIC Site configuration options for charges and taxes
  Restriction

Taxes cannot be added to charges at header-level.

Application.Invoicing.IgnoreZeroHeaderTax (set by SAP Ariba Support)

This parameter specifies whether zero amount header level tax lines are allowed on cXML
invoices. When this parameter is set to Yes, zero amount tax lines are not created at the
header level. The default value is Yes.
Application.Invoicing.TaxIDDomains (set by SAP Ariba Support)

This parameter is a comma-separated list of strings that defines list of the valid tax
identification (ID) domains for the invoicing site. The value can be any string token that
represents a type of tax ID, such as vatID, gstID, hstID, federalTaxID, stateTaxID,
or provincialTaxID. The default value is: vatID, gstID, supplierTaxID

If a supplier sends an invoice with tax ID other than this, for example, hstID, the system
takes the default tax set on your realm using
Application.Invoicing.DefaultTaxTypeName parameter.

Application.Invoicing.UseTLCTaxEngine (set by SAP Ariba Support)

This parameter is used to specify if you want to use the enhanced tax computation engine
or a third-party tax calculation engine for taxes applied on invoices.

 Note

If Application.Invoicing.CopyTaxCodesFromInvoiceToIR is set to Yes, the tax

code on an invoice tax line is copied to the corresponding IR tax line regardless of
whether the site is using the enhanced tax computation engine.

Application.Procure.EnableTaxesChargesAndDiscount (set by SAP Ariba Support)

This parameter is used to enable or disable the support for adding taxes, charges, and
discount to requisitions and purchase orders. If set to Yes, taxes are automatically applied
to requisition line items and copied to purchase orders, and users can view and edit taxes,
charges, and discounts on requisition line items.

If your site includes SINV-6818, PO-based defaulting of taxes, charges, and discounts on
manual invoices, this parameter must be to Yes.
Application.Procure.CopySplitAccountingForDeductibleTaxWithoutAccounting (set by SAP Ariba Support)

Specifies whether the split accounting information for a line item on an approvable
document (requisition or invoice reconciliation document) is copied to its child tax line, if
the tax code applied to the line item includes a deductible tax component that does not
have any accounting information.

If set to No, users must manually enter the accounting information for a child tax line
associated with a line item on an approvable document if the deductible tax component
applied to the parent line does not include any accounting information.

The default value of this parameter is No.

Application.Procure.EnableTaxCalculationInExternalSystems (set by SAP Ariba Support)
This parameter specifies whether taxes are calculated for approvable documents, such as
requisitions and invoice reconciliations in a third-party tax calculation system integrated

Tax and charge configuration

Site configuration options for charges and taxes PUBLIC 85
 with the SAP Ariba solution. If set to Yes (enabled), taxes are calculated for the approvable
documents when tax managers initiate tax calculation for the documents or when users
submit the documents for approval.

The default value of this parameter is No.

This parameter must be enabled along with the

Application.Procure.EnableTaxesChargesAndDiscount parameter to ensure that
taxes for requisitions are calculated in third-party tax calculation systems.
Application.Invoicing.UseNativeTaxEngineForWithholdingTax (set by SAP Ariba Support)

Specifies whether withholding taxes for invoice reconciliation documents are calculated
natively using the enhanced tax computation engine, while the SAP Ariba solution is
configured to calculate indirect taxes for such documents using tax information in third-
party tax calculation systems.

 Note

Together with this parameter, the following parameters must also be enabled:

● Application.Tax.Enabled: To enable calculation of taxes for the line items on

invoices during invoice reconciliation.
● Application.Procure.EnableTaxCalculationInExternalSystems: To
allow calculation of indirect taxes for invoice reconciliation documents using tax
data in external systems.

Application.Procure.IncludeCountrySpecificTaxInformation (set by SAP Ariba Support)

Specifies whether approvable documents, such as requisitions and invoices must include
tax information applicable for a specific country/region. For example, goods and services
tax (GST) for India.

The default value of this parameter is No.

Related Information

Self-service site configuration parameters for charges and taxes [page 87]

Tax and charge configuration

86 PUBLIC Site configuration options for charges and taxes
Self-service site configuration parameters for
charges and taxes

Generate default withholding tax at the header level [page 87]

Include a Tax Code option for invoice tax entry [page 88]

Process tax accrual payments [page 88]

Default tax type for invoices [page 89]

Copy tax codes from invoice to IR document [page 90]

Third-party tax calculation for buying and invoicing [page 90]

Enhanced third-party tax calculation for invoicing [page 91]

Calculate tax for SAP Fieldglass invoices [page 92]

Show accounting info for tax line items on invoices [page 92]

Related Information

Site configuration options for charges and taxes [page 84]

Generate default withholding tax at the header level

By default, computed withholding taxes are added at the header level of invoice reconciliation documents. If this
parameter is set to No, withholding taxes are added at the line level instead. This parameter is applicable if the
parameter Application.Invoicing.UseTLCTaxEngine is set to Yes.

ID Application.Invoicing.DefaultWithholdingTaxOnIRHeader

Name Generate default withholding tax at the header level

Default value No

The parameter Application.Invoicing.UseTLCTaxEngine, which SAP Ariba sets for you, specifies whether
to use the enhanced tax computation engine or a third-party tax calculation engine for taxes applied on invoices. To
change the setting, have your Designated Support Contact (DSC) submit a Service Request (SR).

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Tax and charge configuration

Self-service site configuration parameters for charges and taxes PUBLIC 87
Related Information

Intelligent Configuration Manager administration

Include a Tax Code option for invoice tax entry

Determines whether users can add a tax based on tax code when entering an invoice. If set to Yes, the field for
adding a tax to an invoice lets users choose either Tax Type or Tax Code. If set to No, taxes are always based on tax
type.

ID Application.Invoicing.EnableInvoiceTaxBasedOnTaxCode

Name Include a Tax Code option for invoice tax entry

Default value Yes

● When this parameter is set to Yes, the Add Tax page for an invoice includes a Tax field where users choose
either Tax Type or Tax Code.
● When set to No, the Add Tax page doesn't include a Tax field for choosing Tax Type or Tax Code. Taxes added
to the invoice are always based on tax type.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Intelligent Configuration Manager administration

Process tax accrual payments

When set to Yes, tax difference is accrued for invoice exceptions listed in the parameter Invoice exception types
for accrued tax payments (Application.Invoicing.TaxAccrualExceptions) if the computed tax amount is
more than invoice tax, and the invoice exception handler disputes the invoice tax amount by accepting the
expected tax amount. Payment request documents contain accrual tax amounts.

ID Application.Invoicing.ProcessPaymentsForTaxAccrual

Name Process tax accrual payments

Default value Yes

When set to No, tax difference is not accrued.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Tax and charge configuration

88 PUBLIC Self-service site configuration parameters for charges and taxes
.

Related Information

Intelligent Configuration Manager administration

Default tax type for invoices

Specifies the default tax type to use on invoices when the cXML invoice doesn't include a tax category. The tax type
name you specify must be a tax type that exists in your site. To get the unique names, export your tax type
mappings.

ID Application.Invoicing.DefaultTaxTypeName

Name Default tax type for invoices

Default value sales

This parameter is applicable to invoices received from Ariba Network.

To export tax type mappings so you know what the valid choices are, choose Manage Core Administration ,
choose Site Manager Data Import/Export , and run the Export Tax Type Mappings task. Tax type names
are defined in the Name column of the file TaxTypeMap.csv.

For more information about tax types and tax type mappings, see:

● Import Tax Types [page 55]

● Import Tax Type Mappings [page 56]
A member of the Customer Administrator group sets this parameter in the Intelligent Configuration
Manager workspace.

Related Information

Intelligent Configuration Manager administration

Tax and charge configuration

Self-service site configuration parameters for charges and taxes PUBLIC 89
Copy tax codes from invoice to IR document
Determines whether the tax codes for tax lines on invoice reconciliation (IR) documents originate from the
corresponding tax line on the invoice.

ID Application.Invoicing.CopyTaxCodesFromInvoiceToIR

Name Copy tax codes from invoice to IR document

Default value No

Possible values for this parameter are Yes and No.

● If set to Yes, the tax code on an invoice tax line is copied to the corresponding IR tax line. If there's no valid tax
code that matches the invoice line, tax calculation fails on the IR.
If an invoice tax line has no tax code specified, the tax code for the IR is determined by a tax code lookup.
● If set to No (the default), the tax code on the IR might be different from that on the invoice. The tax code is
calculated using a lookup. The lookup used depends on which tax computation engine your site is using, as
determined by Application.Invoicing.UseTLCTaxEngine.

 Note

If the tax code on an IR is different from what’s expected, it might be because the site’s tax configuration needs
correcting. Address any tax configuration issues before you consider setting this parameter to Yes.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Intelligent Configuration Manager administration

Third-party tax calculation for buying and invoicing

Specifies if your site is integrated with a third-party tax calculation engine to calculate taxes for approvable
documents such as requisitions and invoice reconciliations. If set to Yes, taxes are calculated when tax managers
initiate tax calculation for the documents or when users submit the documents for approval. If set to Yes, you can
set another parameter to turn on enhanced third-party tax calculation for invoicing,
Application.Procure.EnhancedTaxCalculationInExternalSystems.

ID Application.Procure.EnableTaxCalculationInExternalSystems

Name Third-party tax calculation for buying and invoicing

Default value No

If you set this parameter to Yes, we recommend that the parameter

Application.Procure.EnableTaxesChargesAndDiscount be set to Yes to ensure that taxes for requisitions

Tax and charge configuration

90 PUBLIC Self-service site configuration parameters for charges and taxes
are calculated in the third-party tax calculation engine. SAP Ariba sets
Application.Procure.EnableTaxesChargesAndDiscount for you.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Intelligent Configuration Manager administration

Enhanced third-party tax calculation for invoicing [page 91]
Third-party tax calculation overview [page 8]

Enhanced third-party tax calculation for invoicing

On sites integrated with a third-party tax calculation engine, specifies if tax calculation includes enhanced tax
information for reconciliation and payment processes. Enhancements include improved handling of summary and
granular tax details, buyer-payable taxes, and accrual taxes. Applicable if Third-party tax calculation for buying
and invoicing (Application.Procure.EnableTaxCalculationInExternalSystems) is set to Yes.

ID Application.Procure.EnhancedTaxCalculationInExternalSystems

Name Enhanced third-party tax calculation for invoicing

Default value No

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Intelligent Configuration Manager administration

Third-party tax calculation for buying and invoicing [page 90]
Third-party tax calculation overview [page 8]
Enhanced third-party tax calculation for invoices [page 10]

Tax and charge configuration

Self-service site configuration parameters for charges and taxes PUBLIC 91
Calculate tax for SAP Fieldglass invoices
Determines whether tax calculation applies to SAP Fieldglass invoices. Set this parameter to Yes to ensure that
invoice reconciliation documents for Fieldglass invoices include applicable tax codes. This parameter applies to
sites using the enhanced tax computation engine.

ID Application.Invoicing.CalculateTaxForFieldglassInvoices

Name Calculate tax for SAP Fieldglass invoices

Default value No

Possible values for this parameter are Yes and No.

● If set to Yes, taxes on Fieldglass invoices are calculated during the reconciliation process. The invoice
reconciliation document includes the resulting tax codes.
Taxes on Fieldglass invoices are always calculated with the enhanced tax computation engine. Third-party tax
calculation isn't supported for Fieldglass invoices.
● If set to No, taxes on Fieldglass invoices aren't calculated during the reconciliation process. Invoice
reconciliation documents for Fieldglass invoices don't include tax codes.

Regardless of the parameter setting, no exceptions are raised for Fieldglass invoices.

This parameter is applicable when the parameter Application.Invoicing.UseTLCTaxEngine is set to Yes.

This parameter controls the enhanced tax computation engine.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Intelligent Configuration Manager administration

Copy SAP Fieldglass invoices to ERP

Show accounting info for tax line items on invoices

Specifies whether to show or hide accounting fields for tax line items on invoices and invoice reconciliation
documents. This parameter applies to sites integrated with an SAP ERP system.

ID Application.Invoicing.ShowAccountingForTaxLineItems

Name Show accounting info for tax line items on invoices

Default value Yes

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Tax and charge configuration

92 PUBLIC Self-service site configuration parameters for charges and taxes
Related Information

Intelligent Configuration Manager administration

Tax and charge configuration

Self-service site configuration parameters for charges and taxes PUBLIC 93
Ariba Network tax-related invoice rules

Your Ariba Network account has business rules to help your suppliers submit error-free invoices. Following are
some of the key rules that can impact tax configurations in your SAP Ariba solution.

For a complete list of Ariba Network invoicing rules, see Invoice rule reference.

● Copy tax from purchase order to invoice.

● Line item tax on invoice is view-only. (If you enable the rule Copy tax from the purchase order to the
invoice, and you disable the rule Line item tax on invoice is view-only, then suppliers can modify the tax
informationon the purchase order.)
● Allow suppliers to add allowances and charges to invoices.
● Require suppliers to choose from your list of valid tax values. (If you enable this rule, you must configure
valid tax types and rates in your Ariba Network account).
● Allow suppliers to create a tax rate and type for invoices and credit memos. (If you allow supplier to create
their own tax types and rates, and if a tax type is not defined in your system, the default tax type will be
applied).
● Allow suppliers to add shipping and special handling costs and tax details as separate invoice lines.
● Require suppliers to enter taxes at line item level. (If this rules is unchecked, then suppliers can enter taxes
at the header or line level.)
● Require tax amounts in local currency. (VAT is required in either the buyer’s or supplier’s local currency.
When this rule is checked, Ariba Network requires the supplier to choose the buyer’s currency when generating
invoices.)
● Allow suppliers to change Ship To information as shown on purchase orders. and Allow Ship To
information in BPOs to be changed in invoices. (Allowing suppliers to change the Ship-To address might
result in tax variance invoice exceptions if taxes are calculated on orders, and the ship to address change
results in a different tax rate based on your tax tables configuration.)

Tax and charge configuration

94 PUBLIC Ariba Network tax-related invoice rules
Configuration steps for third-party tax
calculation

A member of the Customer Administrator group ensures that the SAP Ariba Buying and Invoicing site is set up for
third-party tax calculation. The following table provides an overview of the steps required.

Table 4: Configuration steps to integrate with third-party tax calculation engines

Step Description and considerations Topics with more information

Implementation planning

Plan your configuration Make a plan that includes the order in Tax and charge data import sequence
which the configuration steps are per­ [page 53]
formed, the data needed for each sys­
Tax information data setup requirement
tem, and primary contacts from each
[page 51]
team.

Ensure that the buying organization Your organization must have an agree­
meets the requirements for this feature ment with a third-party tax provider or­
before beginning implementation. ganization to integrate with their calcula­
tion engine for management of taxes.

Feature enablement

Turn on the features for third-party tax The administrator for SAP Ariba Buying Third-party tax calculation for buying and
and Invoicing sets the following parame­
calculation. invoicing [page 90]
ters in Intelligent Configuration Manager:

● Third-party tax calculation for Enhanced third-party tax calculation for

buying and invoicing invoicing [page 91]
(Application.Procure.Enab
Intelligent Configuration Manager admin­
leTaxCalculationInExtern
istration
alSystems)
● (Optional) Enhanced third-party
tax calculation for invoicing
(Application.Procure.Enha
ncedTaxCalculationInExte
rnalSystems)

(SAP Ariba step) Set the site configura- An SAP Ariba representative sets addi­ Site configuration options for third-party
tion parameters that determine tax cal­ tional parameters. tax calculation [page 101]
culation.

Master data preparation

Tax and charge configuration

Configuration steps for third-party tax calculation PUBLIC 95
Step Description and considerations Topics with more information

Map data for tax calculation Administrators for SAP Ariba Buying and Import External Tax Calculation Providers
[page 76]
Invoicing and the ERP system ensure
that you have mapped the company co­
des and the approvable types (requisi­
tions and invoice reconciliation docu­
ments) that must undergo tax calculation
in the third-party tax calculation engine.

Synchronize tax types and tax codes The tax types and tax codes must be
synchronized across SAP Ariba Buying
and Invoicing, the ERP system, and the
third-party tax calculation engine.

Tax and charge configuration

96 PUBLIC Configuration steps for third-party tax calculation
 Step Description and considerations Topics with more information

Import the tax-related data required for A member of the Tax Manager or the Import Tax Types [page 55]
this feature Customer Administrator group com­
Import Tax Type Mappings [page 56]
pletes the following data import tasks:
Import Tax Components [page 60]
● Import Tax Types
● Import Tax Type Mappings Import Tax Codes [page 63]
● Import Tax Components Import Tax Code Lookups [page 70]
● Import Tax Codes
Import Tax Code Lookup Field Map [page
● Import Tax Code Lookup
72]
(Required if tax calculation for either
Import Tax Code Lookup Field Map for
requisition or invoice reconciliation
Withholding Taxes [page 73]
is performed natively using the en­
hanced tax computation engine in­ Import Tax Rates By Tax Code Lookup
stead of using third-party tax calcu­ [page 75]
lation.)
Import External Tax Calculation Providers
● Import Tax Code Lookup Field [page 76]
Maps
Import Company Code Tax Registration
(Required if tax calculation for either Numbers [page 79]
requisition or invoice reconciliation
Import Buyer Tax Registration Numbers
is performed natively using the en­
[page 81]
hanced tax computation engine in­
stead of using third-party tax calcu­ Import Supplier Tax Registration Num­
lation.) bers [page 80]
● Import Tax Code Lookup Field
Maps for Withholding Taxes (Re­
quired if you're using a third-party
tax engine that doesn't calculate
withholding taxes.)
● Import Tax Rates By Tax Code
Lookup
● Import External Tax Calculation
Providers
● (Only for sites integrated with SAP
ERP) Import Company Code Tax
Registration Numbers
● (Only for sites integrated with Peo­
pleSoft ERP or Generic ERP) Import
Buyer Tax Registration Numbers
● Import Supplier Tax Registration
Numbers

Configure invoice exception types

Tax and charge configuration

Configuration steps for third-party tax calculation PUBLIC 97
Step Description and considerations Topics with more information

Activate invoice exception type Buyer Applicable to Enhanced third-party tax Taxes the buyer pays directly to tax au­
thorities [page 19]
Payable Tax calculation for invoicing only.

An invoicing administrator activates the

Buyer Payable Tax exception. Buyer-pay­
able taxes are tax lines the buyer pays di­
rectly to tax authorities rather than pay­
ing the supplier. A Buyer Payable Tax ex­
ception is raised if the supplier invoice in­
cludes a tax line that the tax calculation
engine marks as a buyer-payable tax.

Configure other tax-related invoice ex­ An invoicing administrator configures Invoice exception types reference
other invoice exception types as needed.
ception types as needed.

Add custom tax fields to requisitions and invoices (optional)

(SAP Ariba step) To add custom tax fields To include custom tax fields on requisi­
to requisitions and invoices, ask your tions and invoices and also include such
Designated Support Contact (DSC) to log fields for tax calculation, SAP Ariba Sup­
a service request. port must select the Include field for
external tax calculation option from the
list of public customization APIs for
requisitions and invoices in the
ProcureLineItemCollection,
Supplier, and ProcureLineItem
classes. This option is available in the ad­

vanced mode in the Customization

Manager Field Configuration task

in Ariba Administrator.

The supported field types for custom tax

fields are String, Integer, Boolean,
Money, and Date.

ERP integration

Configure integration mappings. Applicable to third-party tax calculation Enhanced third-party tax calculation for
invoices [page 10]
for invoice reconciliation documents.

Build custom integration between SAP

Ariba Buying and Invoicing and the ERP
system. Map payment posting instruc­
tions to fields in your ERP system for
payment export.

Tax and charge configuration

98 PUBLIC Configuration steps for third-party tax calculation
 Step Description and considerations Topics with more information

Configure end points for the Export A member of the Integration Admin Export Document Data for External Tax
Document Data for External Tax group configures end points and enables Calculation web service [page 103]
Calculation web service. the Export Document Data for External
Tax Calculation web service task in SAP
Ariba Buying and Invoicing.

Accept the data definition changes to the A member of the Integration Admin Topics about managing changes to inte­
gration events
export tasks to include any new fields group accepts changes to the data defini-
added to support third-party tax calcula­ tion for affected integration tasks under
tion. Integration Manager Data

Definition .

(PeopleSoft and Generic variants only, Applicable to Enhanced third-party tax About payment request data export
partially an SAP Ariba step) Configure
calculation for invoicing only. tasks
your site to use the following task for pay­
ment request export: Export Payment A member of the Integration Admin or
Requests with Advance Payments and Customer Administrator group config-
Taxes.
ures the export task Export Payment
Requests with Advance Payments and
Taxes instead of the export task they're
currently using. Configuring the task in­
volves setting the end point (for web
services), enabling the task, and disa­
bling the task previously used.

SAP Ariba sets parameter

Application.Invoicing.Payab
lePushEvent to
PaymentRealTimeExport_v3.

User permissions and approval flows

Give the appropriate users permission to Applicable to third-party tax calculation How to manage groups in Ariba Adminis­
update taxes on requisitions and IR docu­ for invoice reconciliation documents. trator
ments. SAP Ariba Procurement solutions group
A member of the Customer
descriptions table
Administrator or Customer User Admin
group adds users to the Tax Manager
and Tax Editor groups.

Adjust approval processes as necessary A member of the Invoicing Approval process management guide
Administrator or Customer
Administrator group modifies approval
processes to include the Tax Manager
and Tax Editor group as needed.

Communicate the tax calculation process to users

Tax and charge configuration

Configuration steps for third-party tax calculation PUBLIC 99
Step Description and considerations Topics with more information

Inform users who approve requisitions If you're using third-party tax calculation Third-party tax calculation overview
for requisitions, let users know what to
[page 8]
expect.

Inform users who reconcile invoices of Applicable to Enhanced third-party tax Managing taxes and tax exceptions on an
any new processes calculation for invoicing. invoice reconciliation document

Let invoice reconcilers know how to:

● View the breakdown of the expected

tax amount for a line-level invoice ex­
ception
● Handle a Buyer Payable Tax excep­
tion
● View proration information for
header-level taxes

Inform tax managers and tax editors Applicable to third-party tax calculation
for invoice reconciliation documents.

Let members of the Tax Manager and

Tax Editor group know how to handle
tax-related invoice exceptions. For more
information, see Managing taxes and tax
exceptions on an invoice reconciliation
document.

Site configuration options for third-party tax calculation [page 101]

Export Document Data for External Tax Calculation web service [page 103]

Custom payment posting info in exported payment requests [page 108]

Tax info in payment requests with Enhanced third-party tax calculation for invoicing [page 108]

Custom fields that influence tax calculation [page 111]

Related Information

Before setting up your tax tables [page 32]

Third-party tax calculation overview [page 8]
Tax and charge configuration data import files [page 51]
Restrictions and caveats for third-party tax calculation [page 112]
Troubleshooting tips for third-party tax calculation [page 113]
Sample requests and responses in third-party tax calculation [page 114]

Tax and charge configuration

100 PUBLIC Configuration steps for third-party tax calculation
Site configuration options for third-party tax
calculation
Third-party tax calculation requires configuration.

Some of the functionality for this feature is controlled by site configuration parameters.

● Self-service parameters can be changed by your administrator in Ariba Administrator under Intelligent
Configuration Manager Manage Configurations .
● Parameters and other options that are not self-service are set by SAP Ariba and require a Service Request
(SR).

Parameter settings

Parameter Setting

Yes
Enhanced third-party tax calculation for invoicing
Application.Procure.EnhancedTaxCalculation
InExternalSystems

This is a self-service parameter.

Yes
Third-party tax calculation for buying and invoicing
Application.Procure.EnableTaxCalculationIn
ExternalSystems

This is a self-service parameter.

Application.Procure.EnableTaxesChargesAndD Yes
iscount

Application.Invoicing.UseNativeTaxEngineFo Yes
rWithholdingTax

Application.Invoicing.UseTLCTaxEngine Yes

PeopleSoft and generic variants: PaymentRealTimeExport_v3

Application.Invoicing.PayablePushEvent

To see tax exceptions on line-item credit memos, the following two site parameters must be configured:

Parameter Setting

Application.Invoicing.LineCreditMemoExcept include TaxCharge

ionLineCategories

Tax and charge configuration

Configuration steps for third-party tax calculation PUBLIC 101
Parameter Setting

Application.Invoicing.SkipLineCreditMemoEx No
ceptions

Parameter descriptions

For details about the self-service parameters listed above, see:

Enhanced third-party tax calculation for invoicing [page 91]

Third-party tax calculation for buying and invoicing [page 90]

Following are descriptions of the parameters set by SAP Ariba:

Application.Procure.EnableTaxesChargesAndDiscount (set by SAP Ariba Support)

This parameter is used to enable or disable the support for adding taxes, charges, and
discount to requisitions and purchase orders. If set to Yes, taxes are automatically applied
to requisition line items and copied to purchase orders, and users can view and edit taxes,
charges, and discounts on requisition line items.

If your site includes SINV-6818, PO-based defaulting of taxes, charges, and discounts on
manual invoices, this parameter must be to Yes.
Application.Invoicing.UseNativeTaxEngineForWithholdingTax (set by SAP Ariba Support)

Specifies whether withholding taxes for invoice reconciliation documents are calculated
natively using the enhanced tax computation engine, while the SAP Ariba solution is
configured to calculate indirect taxes for such documents using tax information in third-
party tax calculation systems.

 Note

Together with this parameter, the following parameters must also be enabled:

● Application.Tax.Enabled: To enable calculation of taxes for the line items on

invoices during invoice reconciliation.
● Application.Procure.EnableTaxCalculationInExternalSystems: To
allow calculation of indirect taxes for invoice reconciliation documents using tax
data in external systems.

Application.Invoicing.UseTLCTaxEngine (set by SAP Ariba Support)

This parameter is used to specify if you want to use the enhanced tax computation engine
or a third-party tax calculation engine for taxes applied on invoices.

 Note

If Application.Invoicing.CopyTaxCodesFromInvoiceToIR is set to Yes, the tax

code on an invoice tax line is copied to the corresponding IR tax line regardless of
whether the site is using the enhanced tax computation engine.

Application.Invoicing.PayablePushEvent (set by SAP Ariba Support)

Tax and charge configuration

102 PUBLIC Configuration steps for third-party tax calculation
 Specifies which payment export task the site uses. The setting determines which data is
included payment request export. Following are the valid values:

● PaymentRealTimeExport: Enables the Export Payment Requests task. This task

exports payment request details to the external system.
● PaymentRealTimeExport_v2: Enables the Export Payment Requests with Advance
Payments task. This task exports payment request details including details of advance
payments and Funds Management accounting information (if enabled) to the external
system.
● PaymentRealTimeExport_v3: Enables the Export Payment Requests with Advance
Payments and Taxes task. This task exports payment request details including details
of advance payments and Funds Management accounting information (if enabled) and
taxes to the external system.

Application.Invoicing.LineCreditMemoExceptionLineCategories (set by SAP Ariba Support)

This legacy parameter specifies which categories of line items are validated for exceptions
in line-item credit memos. It's applicable if legacy parameter
Application.Invoicing.SkipLineCreditMemoExceptions is set to No.
Administrators can now configure this functionality themselves in the Invoice Exception
Types UI. To fully enable customer configuration:

● Set Application.Invoicing.SkipLineCreditMemoExceptions to No.

● Add all categories to
Application.Invoicing.LineCreditMemoExceptionLineCategories. Valid
values (not case sensitive): RegularLine, HandlingCharge, SpecialCharge,
Discount, FreightCharge, TaxCharge, WHTTax
● Configure the desired behavior in the Invoice Exception Types UI in Ariba
Administrator.

Application.Invoicing.SkipLineCreditMemoExceptions (set by SAP Ariba Support)

This legacy parameter specifies whether line-level credit memos raise exceptions during
invoice reconciliation. Administrators can now configure this functionality themselves in the
Invoice Exception Types UI. To fully enable customer configuration:

● Set Application.Invoicing.LineCreditMemoExceptions to No.

● Add all categories to
Application.Invoicing.LineCreditMemoExceptionLineCategories.
● Configure the desired behavior in the Invoice Exception Types UI in Ariba
Administrator.

Export Document Data for External Tax Calculation

web service
The Export Document Data for External Tax Calculation web services task exports data from approvables such
as requisitions and invoice reconciliation (IR) documents to a third-party engine for calculation of taxes.

This task sends tax-determining fields to the third-party tax calculation engine based on which taxes need to be
calculated for a requisition or an IR document.

Tax and charge configuration

Configuration steps for third-party tax calculation PUBLIC 103
The third-party tax calculation engine calculates taxes and sends payment posting instructions.

The SAP Ariba solution sends a tax calculation request when any of the following actions occur:

● A user clicks the Update Taxes button on a requisition.

● The SAP Ariba solution creates an IR document.
● A user clicks the Recalculate Taxes button on an IR document.
● A user submits a requisition or IR document for approval.
● A user approves a requisition or an invoice reconciliation document.
● An IR document is fully approved.

For information about the WSDL elements included in requests sent to the tax calculation engine and in responses
from the tax calculation engine, view the WSDL for the Export Document Data for External Tax Calculation task.
In Ariba Administrator, choose Integration Manager Integration Configuration , find and open the task, and
click View WSDL.

Enhanced third-party tax calculation for invoicing

Enhanced third-party tax calculation changes the web service requests and responses that are part of the Export
Document Data for External Tax Calculation web services task.

Table 5: Additional elements in requests sent to the tax calculation engine

Element Description Possible values

RequestType Tells the tax calculation engine what in­ TaxCalculation: returns the tax cal­
formation to return: tax calculations for
culation for the invoice reconciliation.
the invoice reconciliation or tax payment
details that SAP Ariba Buying and Invoic­ ERPPosting: returns the tax payment
ing will send to the ERP system.
details.

IsRetry In ERPposting requests, IsRetry in­ ● true: either SAP Ariba Buying and
dicates whether this is the first posting Invoicing previously received a suc­
request the tax calculation engine has re­ cess response from the tax calcula­
ceived for this IR document. tion engine for an ERPPosting, or
there was an unexpected error (such
The IsRetry element provides a way to
as a network connection error) while
handle situations in which payment fails,
transmitting the request or re­
such as when the ERP system rejects the
sponse.
payment. After payment fails, the invoic­
● false: either this is the first time
ing user can edit the IR document and re­
SAP Ariba Buying and Invoicing is
submit it. When the IR document goes
sending this ERPPosting request,
through the workflow again, SAP Ariba
Buying and Invoicing requests the pay­ or SAP Ariba Buying and Invoicing

ment posting instructions a second time. received an error response from the
tax calculation engine previously.

DocumentSubType The type of invoice document. standard,

lineLevelCreditMemo,
creditMemo,
lineLevelDebitMemo

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104 PUBLIC Configuration steps for third-party tax calculation
 Element Description Possible values

For line-item credit and debit memos: Holds the unique name of the IR docu­ IR1234
RelatedDocument ment associated with the original invoice
that the line-item credit memo or debit
memo is for.

For line-item credit and debit memos: The invoice date of the original invoice 2020-04-14T20:09:00Z
RelatedDocumentDate referenced in the RelatedDocument
field. Applicable to line-item credit
memos and line-item debit memos.
Sending the invoice date of the original
invoice ensures the correct tax calcula­
tion.

For each item: ShipFromAddress Holds the ship from address for the item. Same as other address fields.
Some buyers use the ship from address
to indicate whether tax for the item is
payable by the buyer.

In address elements: Line1, Line2, All address elements (ship from, ship to, Examples: street address, apartment
Line3 billing, and supplier location) include number, suite number.
these additional lines to hold complete
address information for more accurate
tax calculation.

In the LineType element: Category The line category specified for the invoice -1 (catalog item)
line, represented by an integer. 2 (tax)
4 (shipping)
8 (handling charge)
16 (special category)
32 (discount)
64 (withholding tax)

SupplierID A unique ID for the supplier. The unique sid567

name of the partitioned supplier is used
for this.

In the Parent element: The sequence number of the line's parent <Parent><NumberInCollection
NumberInCollection line on the invoice, relative to other lines >1</NumberInCollection></
in same collection. The combination of Parent>
item.NumberInCollection and
item.Parent.NumberInCollect See also Sample requests and responses
ion identifies the line by sequence. in third-party tax calculation [page 114].

OriginalSupplierAmount The amount specified on the original in­ 100.00

voice. This element is included for all line
amounts sent to the tax calculation en­ 25
gine.

Tax and charge configuration

Configuration steps for third-party tax calculation PUBLIC 105
Element Description Possible values

For each material line: Taxes element Applicable when RequestType is See Sample requests and responses in
ERPPosting. Holds the tax information third-party tax calculation [page 114].
for the material line on the approved IR
document. Both requests and responses
send tax information with each line item.

The Taxes element includes:

● TaxType: The tax type. This ele­

ment already existed.
● OriginalSupplierAmount:
Holds the actual tax amount from
the supplier's invoice.
● FinalAmount: The final tax
amount in the approved IR docu­
ment.
Comparing
OriginalSupplierAmount
with FinalAmount reveals
whether the tax manager performed
an action that changed the amount.

If the invoice includes taxes at the header

level, the Taxes section holds the pro­
rated values for each line.

The response from the tax calculation engine, TaxServiceAPIResponse, has two sections for each item inside
ExternalTaxItem:

● TaxComponents (optional): contains the breakdown of granular tax details during the reconciliation call, which
is when initial tax calculation happens. It is ignored during posting call. The purpose of this element is to allow
the tax calculation engine to send a summary tax amount while also sending the detailed tax breakdown.
● PostingComponents: contains detailed payment posting instructions during the posting call, which happens
after the IR document is approved. It is ignored during the reconciliation call.

Table 6: Additional elements in responses from the tax calculation engine

In the ExternalTaxItem element: An optional element that holds details See Sample requests and responses in
TaxComponents about the jurisdictional breakdown of the third-party tax calculation [page 114].
tax. Some possible elements within
TaxComponents are:
● TaxAmount
● Description
● TaxableAmount

In responses to TaxCalculation re­

quests, holds the calculated taxes for the
material line.

Tax and charge configuration

106 PUBLIC Configuration steps for third-party tax calculation
 IsBuyerPayableTax Indicates whether tax for this line item is True
a buyer-payable tax.
False

In the ExternalTaxItem element: In responses to ERPPosting requests, See Sample requests and responses in
PostingComponents holds payment posting information for third-party tax calculation [page 114].
the jurisdiction-level breakdown of the
tax. Possible elements within
PostingComponents:
● TaxAmount
● TaxableAmount
● FormulaString: the tax calcula­
tion engine's description of the tax.
● TaxCode: usually specified at line
level, but can be specified for each
item in PostingComponents.
● PostingInstructions: in­
structions for paying the tax line.
Possible elements within
PostingInstructions:
AccountInstruction: Ex­
ported to the ACCOUNT_INSTRUC­
TION field.
TaxAuthority: the tax authority
to be paid. Exported to the TAX_AU­
THORITY field.
TXJCD: the tax jurisdiction code as­
sociated with the tax. Exported to
the TAX_JURISDICTION field.
IsAccrual: Boolean specifying
whether the tax amount is to be ac­
crued.

Related Information

Enhanced third-party tax calculation for invoices [page 10]

Tax and charge configuration

Configuration steps for third-party tax calculation PUBLIC 107
Custom payment posting info in exported payment
requests
With third-party tax calculation for invoices, you can have additional, custom payment posting information included
in exported payment requests.

● The third-party tax calculation engine can pass additional payment posting instructions to custom fields in
your SAP Ariba solution.
● The SAP Ariba solution can include the custom fields in exported payment requests.

Adding custom fields for additional payment posting instructions requires an SAP Ariba customization. For more
information, have your Designated Support Contact (DSC) submit a Commercial Request with your SAP Ariba
Customer Engagement Executive or Account Manager. When SAP Ariba finishes the customization, remember to
accept changes to the data definition for the Export Payment Requests task. Also, prepare your ERP system to
consume the new field.

The customization involves creating a new expression-based field under TaxDistribution. The following excerpt
shows a sample customization for transferring custom key-value pairs from the posting call response to the
exported payment request:

<inClass name="ariba.invoicing.core.TaxDistribution">
<derived>
<field expression="getPostingInstruction("PostingKey")"
name="cus_PostingKey">
<type class="java.lang.String" length="100"/>
<properties label="PostingKey"/>
<templates>
<template name="StringField" operator="add"/>
<template name="PaymentExportableField" operator="add"/>
</templates>
</field>
</derived>
</inClass>

With this example, the column name in the PaymentTaxExport.csv file is

InvoiceReconciliation_TaxDistributionVector_cus_PostingKey.

Tax info in payment requests with Enhanced third-

party tax calculation for invoicing
On sites using Enhanced third-party tax calculation for invoicing, exported payment requests include payment
posting instructions for accruals.

When the reconciled invoice has a tax accrual (for example, a tax line with an Under Tax Variance exception that
the tax manager disputed), payment posting instructions from the tax engine include tax authority information for
the accrual.

The payment instructions can include distribution of the accrual among multiple tax authorities. For example, a
sales tax accrual amount of 5 might be split, with 2 for a city tax authority and 3 for a state tax authority. This
breakdown of accrued taxes at the line level is included in exported payment requests.

Tax and charge configuration

108 PUBLIC Configuration steps for third-party tax calculation
  Note

If there's no accrual amount to send, the third-party tax calculation engine sends an accrued tax amount of 0.
Also, SAP Ariba Buying and Invoicing doesn't validate accrual information from the tax engine.

Tax accrual payment instructions from the tax engine (SAP variants)

 Note

On sites that use the standard Third-party tax calculation for buying and invoicing feature, the following tax
payment fields were populated by values in SAP Ariba Buying and Invoicing, not values from the third-party tax
engine.

Web services: element in Populated by this element in

File channel: column in Payment_PaymentTaxExport_It ExternalTaxItem.PostingComp
PaymentTaxExport.csv em onents WSDL from tax engine

IS_ACCRUAL <IsAccrual> PostingInstructions.IsAccru

al

ACCRUAL_TAX_AMOUNT <AccrualTaxAmount><Amount> TaxAmount (for lines where

PostingInstructions.Name =
IsAccrual and
PostingInstructions.Value =
true)

ACCOUNT_INSTRUCTION <AccountInstruction> PostingInstructions.Name.Ac

countInstruction

TAX_AUTHORITY <TaxAuthority> PostingInstructions.Value.T

axAuthority

TAX_JURISDICTION <TXJCD> PostingInstructions.Value.T

axJurisdiction

Tax accrual payment instructions from the tax engine (PeopleSoft and Generic variants)

SAP Ariba sites configured as PeopleSoft or Generic variants have a payment request export task specifically for
third-party tax integration.

Export Payment Requests with Advance Payments and Taxes exports payment request details, including details
of advance payments, Funds Management accounting information (if enabled) and taxes to the ERP system. This
task is similar to the task Export Payment Requests with Advance Payments, except it includes tax details in a
separate CSV file (PaymentTaxExport.csv) or web services element (<Payment_PaymentTaxExport_Item>).

Tax and charge configuration

Configuration steps for third-party tax calculation PUBLIC 109
Table 9: Exported tax accrual details in PeopleSoft variants
Populated by this element in
File channel: column in PaymentTaxEx­ Web services: element in <Pay­ ExternalTaxItem.PostingComp
port.csv ment_PaymentTaxExport_Item> onents WSDL from tax engine

IS_ACCRUAL <IsAccrual> PostingInstructions.IsAccru

al

ACCRUAL_TAX_AMOUNT <AccrualTaxAmount><Amount> TaxAmount (for lines where

PostingInstructions.Name =
IsAccrual and
PostingInstructions.Value =
true)

ACCOUNT_INSTRUCTION <AccountInstruction> PostingInstructions.Name.Ac

countInstruction

TAX_AUTHORITY <TaxAuthority> PostingInstructions.Value.T

axAuthority

TAX_JURISDICTION <TXJCD> PostingInstructions.Value.T

axJurisdiction

Table 10: Exported tax accrual details in Generic variants

Populated by this element in
File channel: column in PaymentTaxEx­ Web services: element in <Pay­ ExternalTaxItem.PostingComp
port.csv ment_PaymentTaxExport_Item> onents WSDL from tax engine

IsAccrual <IsAccrual> PostingInstructions.IsAccru

al

AccrualTaxAmount <AccrualTaxAmount><Amount> TaxAmount (for lines where

PostingInstructions.Name =
IsAccrual and
PostingInstructions.Value =
true)

AccountInstruction <AccountInstruction> PostingInstructions.Name.Ac

countInstruction

TaxAuthority <TaxAuthority> PostingInstructions.Value.T

axAuthority

TAX_JURISDICTION <TXJCD> PostingInstructions.Value.T

axJurisdiction

Tax source field indicates where taxes were calculated

The Export Payment Requests task includes a field in the payment request header to indicate where the taxes
were calculated.

● For the file channel, the file PaymentHeaderExport.csv has a column called TAX_SOURCE.
● For the web services channel, the InvoiceReconciliation element includes a field called TaxSource.

Tax and charge configuration

110 PUBLIC Configuration steps for third-party tax calculation
Possible tax source values are:

● ETE: taxes were calculated by a third-party, or external, tax engine.

● ARIBA: taxes were calculated using tax tables defined in SAP Ariba Buying and Invoicing.

Related Information

Enhanced third-party tax calculation for invoices [page 10]

Configuration steps for third-party tax calculation [page 95]

Custom fields that influence tax calculation

SAP Ariba can configure custom fields to be taken into account during tax calculation. These fields are sometimes
referred to as tax-determining fields or tax influencer fields. Custom tax influencer fields are included in tax
calculation requests sent to the tax calculation engine.

For example, some governments give a tax break to businesses set up in a Special Economic Zone (SEZ).
Organizations inside a SEZ can configure their IR documents to include a custom field that conveys this
information to the third-party tax calculation engine. Every tax calculation request will include that SEZ field so the
tax break gets applied.

To turn a custom field into a tax influencer field, SAP Ariba Support chooses Include field for external tax
calculation on the Advanced tab of field configuration. After that, the buyer must accept changes to the data
definition for the payment request export event they're using.

Custom tax-determining fields use a template field called TaxInfluencer. Sites using third-party tax calculation
support the use of the TaxInfluencer template with custom fields but not with standard (default) fields. Using
TaxInfluencer with standard fields causes a change to the WSDL used for communicating with the tax
calculation engine.

 Note

The addition of custom tax influencer fields must be discussed and agreed upon by all entities involved: the
buyer, SAP Ariba, and the third-party tax organization.

Tax and charge configuration

Configuration steps for third-party tax calculation PUBLIC 111
Restrictions and caveats for third-party tax
calculation

● When SAP Ariba Buying and Invoicing is integrated with a third-party tax calculation engine, the tax
information displayed in the user interface is from the third-party tax organization you have an agreement with.
● All tax information is advisory only.
● On the invoice reconciliation (IR) document, you can't manually overwrite the values sent by the tax calculation
engine. If you think the tax information is incorrect, contact the third-party tax organization, explain the issue,
and have them check your configuration.
● Externally calculated taxes are applied for all line items on requisitions and invoice reconciliation documents.
You cannot choose specific line items on the documents and apply taxes on them.
● This feature doesn't support header-level credit memos.
● A single IR document can't use a combination of both third-party and SAP Ariba tax tables. All IR lines are
subject to the same tax calculation engine.
● Advance payments are not applied to taxes.

Caveats specific to Enhanced third-party tax calculation for invoicing

● In certain instances, there might be a variation in the tax types and amounts you see in the user interface and
the taxes that are eventually transferred to your ERP system. This is because the tax engine further refines the
tax information based on the action taken by your AP team during invoice reconciliation.
● This feature requires custom data mappings between SAP Ariba Buying and Invoicing and your ERP system.
No native integration is available at this time.
This feature is supported by SAP Ariba cloud integration 9.0 or later. SAP Ariba Cloud Integration Gateway
does not support this feature at this time.

Tax and charge configuration

112 PUBLIC Restrictions and caveats for third-party tax calculation
Troubleshooting tips for third-party tax
calculation

Third-party tax calculation error messages let you know whether to contact SAP Ariba or your tax provider if issues
occur in sending tax information.

When the ERP system fails to import payment information

When the ERP system imports payment information from SAP Ariba Buying and Invoicing, if there is a failure on the
ERP side, the corresponding IR document in SAP Ariba Buying and Invoicing gets a status of Paying Failed. When
this happens, SAP Ariba Buying and Invoicing resends the IR document to the tax calculation engine to refresh the
payment posting instructions.

Invoice exceptions for failed tax calculations

If there's an error during the tax calculation call, SAP Ariba Buying and Invoicing adds a temporary tax line to the
header of the invoice reconciliation (IR) document, and Tax Calculation Failed exception is raised on that line. The
temporary tax line is Sales tax (auto-generated).

When this happens, click Recalculate Tax to start the tax calculation call again. If tax calculation is successful this
time, the Tax Calculation Failed exception is cleared, and the temporary line is removed.

The Recalculate Tax button is always available on sites that support third-party tax calculation.

If the error is on the SAP Ariba side, the SAP Ariba Buying and Invoicing solution retries the tax calculation call
automatically when the IR document is loaded.

Tax calculation failures might be due to incorrect data in tax tables. If you think that's the case, contact your tax
provider.

Tax and charge configuration

Troubleshooting tips for third-party tax calculation PUBLIC 113
Sample requests and responses in third-party
tax calculation

View sample requests and responses to get an idea of how information flows between the SAP Ariba solution and
the third-party tax calculation system.

Sample request for initial tax calculation

 Sample Code

<soap:Envelope xmlns:soap="http://schemas.xmlsoap.org/soap/envelope/"
xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns:xsi="http://www.w3.org/2001/
XMLSchema-instance">
<soap:Header><Headers xmlns="urn:Ariba:Buyer:vrealm_2"><variant>vrealm_2</
variant><partition>prealm_2</partition></Headers></soap:Header>
<soap:Body><TaxServiceExportRequest xmlns="urn:Ariba:Buyer:TaxAPI"
variant="vrealm_2" partition="prealm_2">
<ProcureLineItemCollection_TaxServiceAPIRequest_Item>
<item>
<CompanyCode><UniqueName>3000</UniqueName></CompanyCode>
<DocumentDate>2018-11-14T08:44:50Z</DocumentDate>
<DocumentSubType>standard</DocumentSubType>
<LineItems>
<item>
<BillingAddress>
<PostalAddress>
<City>NEW YORK</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>000 Broadway</Line1><Line2/><Line3/>
<PostalCode>10001</PostalCode>
<State>NY</State>
</PostalAddress>
</BillingAddress>
<Description><UnitOfMeasure><UniqueName>EA</UniqueName></
UnitOfMeasure></Description>
<IncoTermsDetail/>
<LineType><Category>1</Category><UniqueName>_NonCatalogItem</
UniqueName></LineType>
<NetAmount><Amount>100.00000</Amount><Currency><UniqueName>USD</
UniqueName></Currency></NetAmount>
<NumberInCollection>1</NumberInCollection>
<OriginalSupplierAmount>
<Amount>100.00000</Amount><Currency><UniqueName>USD</
UniqueName></Currency>
</OriginalSupplierAmount>
<ParentLineNumber>-1</ParentLineNumber>
<Quantity>10.00000</Quantity>
<ShipFromAddress>
<PostalAddress>
<City>Paris</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>An der Welle 00</Line1><Line2/><Line3/>
<PostalCode>94089</PostalCode>
<State>CA</State>
</PostalAddress>
</ShipFromAddress>

Tax and charge configuration

114 PUBLIC Sample requests and responses in third-party tax calculation
 <ShipTo>
<PostalAddress>
<City>NEW YORK</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>000 Broadway</Line1><Line2/><Line3/>
<PostalCode>10001</PostalCode>
<State>NY</State>
</PostalAddress>
</ShipTo>
<SupplierID>0000000100</SupplierID>
<SupplierLocation>
<PostalAddress>
<City>Berlin</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>Kolping Str. 00</Line1><Line2/><Line3/>
<PostalCode>94536</PostalCode>
<State>CA</State>
</PostalAddress>
</SupplierLocation>
<TaxExclusion>false</TaxExclusion>
</item>
<item>
<BillingAddress>
<PostalAddress>
<City>NEW YORK</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>000 Broadway</Line1><Line2/><Line3/>
<PostalCode>10001</PostalCode>
<State>NY</State>
</PostalAddress>
</BillingAddress>
<IncoTermsDetail/>
<LineType><Category>2</Category><UniqueName>StateSalesTax</
UniqueName></LineType>
<NetAmount><Amount>10.00000</Amount><Currency><UniqueName>USD</
UniqueName></Currency></NetAmount>
<NumberInCollection>2</NumberInCollection>
<OriginalSupplierAmount>
<Amount>10.00000</Amount><Currency><UniqueName>USD</
UniqueName></Currency>
</OriginalSupplierAmount>
<Parent><NumberInCollection>1</NumberInCollection></Parent>
<ParentLineNumber>0</ParentLineNumber>
<Quantity>1.00000</Quantity>
<ShipFromAddress>
<PostalAddress>
<City>Paris</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>An der Welle 00</Line1><Line2/><Line3/>
<PostalCode>94089</PostalCode>
<State>CA</State>
</PostalAddress>
</ShipFromAddress>
<ShipTo>
<PostalAddress>
<City>NEW YORK</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>000 Broadway</Line1><Line2/><Line3/>
<PostalCode>10001</PostalCode>
<State>NY</State>
</PostalAddress>
</ShipTo>
<SupplierID>0000000100</SupplierID>
<SupplierLocation>
<PostalAddress>
<City>Berlin</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>Kolping Str. 00</Line1><Line2/><Line3/>

Tax and charge configuration

Sample requests and responses in third-party tax calculation PUBLIC 115
 <PostalCode>94536</PostalCode>
<State>CA</State>
</PostalAddress>
</SupplierLocation>
<TaxExclusion>true</TaxExclusion>
</item>
<item>
<BillingAddress>
<PostalAddress>
<City>NEW YORK</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>000 Broadway</Line1><Line2/><Line3/>
<PostalCode>10001</PostalCode>
<State>NY</State>
</PostalAddress>
</BillingAddress>
<IncoTermsDetail/>
<LineType><Category>2</Category><UniqueName>CountySalesTax</
UniqueName></LineType>
<NetAmount><Amount>10.00000</Amount><Currency><UniqueName>USD</
UniqueName></Currency></NetAmount>
<NumberInCollection>3</NumberInCollection>
<OriginalSupplierAmount>
<Amount>10.00000</Amount><Currency><UniqueName>USD</
UniqueName></Currency>
</OriginalSupplierAmount>
<Parent><NumberInCollection>1</NumberInCollection></Parent>
<ParentLineNumber>0</ParentLineNumber>
<Quantity>1.00000</Quantity>
<ShipFromAddress>
<PostalAddress>
<City>Paris</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>An der Welle 00</Line1><Line2/><Line3/>
<PostalCode>94089</PostalCode>
<State>CA</State>
</PostalAddress>
</ShipFromAddress>
<ShipTo>
<PostalAddress>
<City>NEW YORK</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>000 Broadway</Line1><Line2/><Line3/>
<PostalCode>10001</PostalCode>
<State>NY</State>
</PostalAddress>
</ShipTo>
<SupplierID>0000000100</SupplierID>
<SupplierLocation>
<PostalAddress>
<City>Berlin</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>Kolping Str. 00</Line1><Line2/><Line3/>
<PostalCode>94536</PostalCode>
<State>CA</State>
</PostalAddress>
</SupplierLocation>
<TaxExclusion>true</TaxExclusion>
</item>
</LineItems>
<OrganizationName>3000</OrganizationName>
<OrganizationUnit>CompanyCode</OrganizationUnit>
<RequestType>TaxCalculation</RequestType>
<Type>ariba.invoicing.core.InvoiceReconciliation</Type>
<UniqueName>IR141120181414_LL_Granular_UnderTaxDispu-64</UniqueName>
</item>
</ProcureLineItemCollection_TaxServiceAPIRequest_Item>

Tax and charge configuration

116 PUBLIC Sample requests and responses in third-party tax calculation
 </TaxServiceExportRequest></soap:Body></soap:Envelope>

Sample responses with initial tax calculation

Example without the optional TaxComponents element:

 Sample Code

<soapenv:Envelope xmlns:soapenv="http://schemas.xmlsoap.org/soap/envelope/"
xmlns:urn="urn:Ariba:Buyer:TaxAPI">
<soapenv:Body>
<urn:TaxServiceExportReply partition="prealm_2" variant="vrealm_2">
<urn:ProcureLineItemCollection_TaxServiceAPIResponse_Item>
<urn:item>
<urn:ExternalTaxResponseStatus>
<urn:Success>True</urn:Success>
</urn:ExternalTaxResponseStatus>
<urn:LineItems>
<urn:item>
<urn:ExternalTaxItem>
<urn:item>
<urn:IsBuyerPayableTax>false</urn:IsBuyerPayableTax>
<urn:AbatementPercent>100</urn:AbatementPercent>
<urn:Category>POInv</urn:Category>
<urn:Description>StateSalesTax</urn:Description>
<urn:ExternalTaxType><urn:UniqueName>StateSalesTax</
urn:UniqueName></urn:ExternalTaxType>
<urn:FormulaString>NetAmount</urn:FormulaString>
<urn:IsDeductible>0</urn:IsDeductible>
<urn:InvoiceCitation>StateSalesTax</urn:InvoiceCitation>
<urn:PerUnit>0</urn:PerUnit>
<urn:Percent>4</urn:Percent>
<urn:TaxAmount>
<urn:Amount>15</
urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency>
</urn:TaxAmount>
<urn:TaxableAmount>
<urn:Amount>100</
urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency>
</urn:TaxableAmount>
</urn:item>
<urn:item>
<urn:IsBuyerPayableTax>false</urn:IsBuyerPayableTax>
<urn:AbatementPercent>100</urn:AbatementPercent>
<urn:Category>POInv</urn:Category>
<urn:Description>CountySalesTax</urn:Description>
<urn:ExternalTaxType><urn:UniqueName>CountySalesTax</
urn:UniqueName></urn:ExternalTaxType>
<urn:FormulaString>NetAmount</urn:FormulaString>
<urn:IsDeductible>0</urn:IsDeductible>
<urn:InvoiceCitation>CountySalesTax</
urn:InvoiceCitation>
<urn:PerUnit>0</urn:PerUnit>
<urn:Percent>4</urn:Percent>
<urn:TaxAmount>
<urn:Amount>10</
urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency>
</urn:TaxAmount>
<urn:TaxableAmount>
<urn:Amount>100</
urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency>
</urn:TaxableAmount>

Tax and charge configuration

Sample requests and responses in third-party tax calculation PUBLIC 117
 </urn:item>
</urn:ExternalTaxItem>
<urn:NumberInCollection>1</urn:NumberInCollection>
<urn:TaxCode>
<urn:Country><urn:UniqueName>US</urn:UniqueName></
urn:Country><urn:UniqueName>I0</urn:UniqueName>
</urn:TaxCode>
</urn:item>
<urn:item>
<urn:ExternalTaxItem></urn:ExternalTaxItem>
<urn:NumberInCollection>2</urn:NumberInCollection>
</urn:item>
<urn:item>
<urn:ExternalTaxItem></urn:ExternalTaxItem>
<urn:NumberInCollection>3</urn:NumberInCollection>
</urn:item>
</urn:LineItems>
<urn:UniqueName>IR141120181414_LL_Granular_UnderTaxDispu-64</
urn:UniqueName>
</urn:item>
</urn:ProcureLineItemCollection_TaxServiceAPIResponse_Item>
</urn:TaxServiceExportReply>
</soapenv:Body>
</soapenv:Envelope>

Excerpt showing a summary tax amount along with a TaxComponents element for the detailed tax breakdown:

 Sample Code

<urn:ExternalTaxItem>
<urn:item>
<urn:IsBuyerPayableTax>false</urn:IsBuyerPayableTax>
<urn:AbatementPercent>100</urn:AbatementPercent>
<urn:Category>POInv</urn:Category>
<urn:Description>SalesTax</urn:Description>
<urn:ExternalTaxType>
<urn:UniqueName>SalesTax</urn:UniqueName>
</urn:ExternalTaxType>
<urn:FormulaString>NetAmount</urn:FormulaString>
<urn:IsDeductible>0</urn:IsDeductible>
<urn:InvoiceCitation>SalesTax</urn:InvoiceCitation>
<urn:PerUnit>0</urn:PerUnit>
<urn:Percent>4</urn:Percent>
<urn:TaxAmount>
<urn:Amount>25</urn:Amount><urn:Currency><urn:UniqueName>USD</
urn:UniqueName></urn:Currency>
</urn:TaxAmount>
<urn:TaxableAmount>
<urn:Amount>100</urn:Amount><urn:Currency><urn:UniqueName>USD</
urn:UniqueName></urn:Currency>
</urn:TaxableAmount>
<urn:TaxComponents>
<urn:item>
<urn:Description>State tax</urn:Description>
<urn:ExternalTaxType>
<urn:UniqueName>StateSalesTax</urn:UniqueName>
</urn:ExternalTaxType>
<urn:FormulaString>NetAmount</urn:FormulaString>
<urn:Percent>15</urn:Percent>
<urn:TaxAmount>
<urn:Amount>15</
urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency>
</urn:TaxAmount>
<urn:TaxableAmount>
<urn:Amount>100</
urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency>

Tax and charge configuration

118 PUBLIC Sample requests and responses in third-party tax calculation
 </urn:TaxableAmount>
</urn:item>
<urn:item>
<urn:Description>County tax</urn:Description>
<urn:ExternalTaxType>
<urn:UniqueName>CountySalesTax</urn:UniqueName>
</urn:ExternalTaxType>
<urn:FormulaString>NetAmount</urn:FormulaString>
<urn:Percent>10</urn:Percent>
<urn:TaxAmount>
<urn:Amount>10</
urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency>
</urn:TaxAmount>
<urn:TaxableAmount>
<urn:Amount>100</
urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency>
</urn:TaxableAmount>
</urn:item>
</urn:TaxComponents>
</urn:item>
</urn:ExternalTaxItem>

Excerpt of sample request for tax calculation of line-item credit memo

 Sample Code

<TaxServiceExportRequest xmlns="urn:Ariba:Buyer:TaxAPI" variant="vrealm_2"

partition="prealm_2">
<ProcureLineItemCollection_TaxServiceAPIRequest_Item>
<item>
<CompanyCode>
<UniqueName>3000</UniqueName>
</CompanyCode>
<DocumentDate>2020-04-16T20:11:00Z</DocumentDate>
<DocumentSubType>lineLevelCreditMemo</DocumentSubType>
<LineItems>
<item>...</item>
</LineItems>
<OrganizationName>3000</OrganizationName>
<OrganizationUnit>CompanyCode</OrganizationUnit>
<RelatedDocument>IRSINV10555-NonPO-04-33</RelatedDocument>
<RequestType>TaxCalculation</RequestType>
<Type>ariba.invoicing.core.InvoiceReconciliation</Type>
<UniqueName>IRCM10555-NonPO-04-34</UniqueName>
<RelatedDocumentDate>2020-04-14T20:09:00Z</RelatedDocumentDate>
</item>
</ProcureLineItemCollection_TaxServiceAPIRequest_Item>
</TaxServiceExportRequest>

Sample request for final payment posting instructions

<soap:Envelope xmlns:soap="http://schemas.xmlsoap.org/soap/envelope/"
xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns:xsi="http://www.w3.org/2001/
XMLSchema-instance">

Tax and charge configuration

Sample requests and responses in third-party tax calculation PUBLIC 119
 <soap:Header><Headers xmlns="urn:Ariba:Buyer:vrealm_2"><variant>vrealm_2</
variant><partition>prealm_2</partition></Headers></soap:Header>
<soap:Body>
<TaxServiceExportRequest xmlns="urn:Ariba:Buyer:TaxAPI" variant="vrealm_2"
partition="prealm_2">
<ProcureLineItemCollection_TaxServiceAPIRequest_Item>
<item>
<CompanyCode><UniqueName>3000</UniqueName></CompanyCode>
<DocumentDate>2018-11-14T08:44:50Z</DocumentDate>
<DocumentSubType>standard</DocumentSubType>
<LineItems>
<item>
<BillingAddress>
<PostalAddress>
<City>NEW YORK</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>000 Broadway</Line1><Line2/><Line3/>
<PostalCode>10001</PostalCode>
<State>NY</State>
</PostalAddress>
</BillingAddress>
<Description><UnitOfMeasure><UniqueName>EA</UniqueName></
UnitOfMeasure></Description>
<IncoTermsDetail/>
<LineType><Category>1</Category><UniqueName>_NonCatalogItem</
UniqueName></LineType>
<NetAmount><Amount>100.00000</Amount><Currency><UniqueName>USD</
UniqueName></Currency></NetAmount>
<NumberInCollection>1</NumberInCollection>
<OriginalSupplierAmount>
<Amount>100.00000</Amount><Currency><UniqueName>USD</
UniqueName></Currency>
</OriginalSupplierAmount>
<ParentLineNumber>-1</ParentLineNumber>
<Quantity>10.00000</Quantity>
<ShipFromAddress>
<PostalAddress>
<City>Paris</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>An der Welle 00</Line1><Line2/><Line3/>
<PostalCode>94089</PostalCode>
<State>CA</State>
</PostalAddress>
</ShipFromAddress>
<ShipTo>
<PostalAddress>
<City>NEW YORK</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>000 Broadway</Line1><Line2/><Line3/>
<PostalCode>10001</PostalCode>
<State>NY</State>
</PostalAddress>
</ShipTo>
<SupplierID>0000000100</SupplierID>
<SupplierLocation>
<PostalAddress>
<City>Berlin</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>Kolping Str. 00</Line1><Line2/><Line3/>
<PostalCode>94536</PostalCode>
<State>CA</State>
</PostalAddress>
</SupplierLocation>
<TaxExclusion>false</TaxExclusion>
<Taxes>
<item>
<FinalAmount>

Tax and charge configuration

120 PUBLIC Sample requests and responses in third-party tax calculation
 <Amount>15.00000</Amount><Currency><UniqueName>USD</
UniqueName></Currency>
</FinalAmount>
<OriginalSupplierAmount>
<Amount>10.00000</Amount><Currency><UniqueName>USD</
UniqueName></Currency>
</OriginalSupplierAmount>
<TaxType>
<UniqueName>StateSalesTax</UniqueName>
</TaxType>
</item>
<item>
<FinalAmount>
<Amount>10.00000</Amount><Currency><UniqueName>USD</
UniqueName></Currency>
</FinalAmount>
<OriginalSupplierAmount>
<Amount>10.00000</Amount><Currency><UniqueName>USD</
UniqueName></Currency>
</OriginalSupplierAmount>
<TaxType>
<UniqueName>CountySalesTax</UniqueName>
</TaxType>
</item>
</Taxes>
</item>
<item>
<BillingAddress>
<PostalAddress>
<City>NEW YORK</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>000 Broadway</Line1><Line2/><Line3/>
<PostalCode>10001</PostalCode>
<State>NY</State>
</PostalAddress>
</BillingAddress>
<BuyerTaxRegistrationNumber/>
<IncoTermsDetail/>
<LineType><Category>2</Category><UniqueName>StateSalesTax</
UniqueName></LineType>
<NetAmount><Amount>15.00000</Amount><Currency><UniqueName>USD</
UniqueName></Currency></NetAmount>
<NumberInCollection>2</NumberInCollection>
<OriginalSupplierAmount>
<Amount>10.00000</Amount><Currency><UniqueName>USD</
UniqueName></Currency>
</OriginalSupplierAmount>
<Parent><NumberInCollection>1</NumberInCollection></Parent>
<ParentLineNumber>0</ParentLineNumber>
<Quantity>1.00000</Quantity>
<SellerTaxRegistrationNumber/>
<ShipFromAddress>
<PostalAddress>
<City>Paris</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>An der Welle 00</Line1><Line2/><Line3/>
<PostalCode>94089</PostalCode>
<State>CA</State>
</PostalAddress>
</ShipFromAddress>
<ShipTo>
<PostalAddress>
<City>NEW YORK</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>000 Broadway</Line1><Line2/><Line3/>
<PostalCode>10001</PostalCode>
<State>NY</State>
</PostalAddress>

Tax and charge configuration

Sample requests and responses in third-party tax calculation PUBLIC 121
 </ShipTo>
<SupplierID>0000000100</SupplierID>
<SupplierLocation>
<PostalAddress>
<City>Berlin</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>Kolping Str. 00</Line1><Line2/><Line3/>
<PostalCode>94536</PostalCode>
<State>CA</State>
</PostalAddress>
</SupplierLocation>
<TaxExclusion>true</TaxExclusion>
</item>
<item>
<BillingAddress>
<PostalAddress>
<City>NEW YORK</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>000 Broadway</Line1><Line2/><Line3/>
<PostalCode>10001</PostalCode>
<State>NY</State>
</PostalAddress>
</BillingAddress>
<BuyerTaxRegistrationNumber/>
<IncoTermsDetail/>
<LineType><Category>2</Category><UniqueName>CountySalesTax</
UniqueName></LineType>
<NetAmount><Amount>10.00000</Amount><Currency><UniqueName>USD</
UniqueName></Currency></NetAmount>
<NumberInCollection>3</NumberInCollection>
<OriginalSupplierAmount>
<Amount>10.00000</Amount><Currency><UniqueName>USD</
UniqueName></Currency>
</OriginalSupplierAmount>
<Parent><NumberInCollection>1</NumberInCollection></Parent>
<ParentLineNumber>0</ParentLineNumber>
<Quantity>1.00000</Quantity>
<SellerTaxRegistrationNumber/>
<ShipFromAddress>
<PostalAddress>
<City>Paris</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>An der Welle 00</Line1><Line2/><Line3/>
<PostalCode>94089</PostalCode>
<State>CA</State>
</PostalAddress>
</ShipFromAddress>
<ShipTo>
<PostalAddress>
<City>NEW YORK</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>000 Broadway</Line1><Line2/><Line3/>
<PostalCode>10001</PostalCode>
<State>NY</State>
</PostalAddress>
</ShipTo>
<SupplierID>0000000100</SupplierID>
<SupplierLocation>
<PostalAddress>
<City>Berlin</City>
<Country><UniqueName>US</UniqueName></Country>
<Line1>Kolping Str. 00</Line1><Line2/><Line3/>
<PostalCode>94536</PostalCode>
<State>CA</State>
</PostalAddress>
</SupplierLocation>
<TaxExclusion>true</TaxExclusion>
</item>

Tax and charge configuration

122 PUBLIC Sample requests and responses in third-party tax calculation
 </LineItems>
<OrganizationName>3000</OrganizationName>
<OrganizationUnit>CompanyCode</OrganizationUnit>
<RequestType>ERPPosting</RequestType>
<Type>ariba.invoicing.core.InvoiceReconciliation</Type>
<UniqueName>IR141120181414_LL_Granular_UnderTaxDispu-64</UniqueName>
</item>
</ProcureLineItemCollection_TaxServiceAPIRequest_Item>
</TaxServiceExportRequest>
</soap:Body>
</soap:Envelope>

Sample response with final payment posting instructions

<soapenv:Envelope xmlns:soapenv="http://schemas.xmlsoap.org/soap/envelope/"
xmlns:urn="urn:Ariba:Buyer:TaxAPI">
<soapenv:Body>
<urn:TaxServiceExportReply partition="prealm_2" variant="vrealm_2">
<urn:ProcureLineItemCollection_TaxServiceAPIResponse_Item>
<urn:item>
<urn:ExternalTaxResponseStatus>
<urn:Success>True</urn:Success>
</urn:ExternalTaxResponseStatus>
<urn:LineItems>
<urn:item>
<urn:ExternalTaxItem>
<urn:item>
<urn:IsBuyerPayableTax>false</urn:IsBuyerPayableTax>
<urn:AbatementPercent>100</urn:AbatementPercent>
<urn:Category>POInv</urn:Category>
<urn:Description>StateSalesTax</urn:Description>
<urn:ExternalTaxType>
<urn:UniqueName>StateSalesTax</urn:UniqueName>
</urn:ExternalTaxType>
<urn:FormulaString>NetAmount</urn:FormulaString>
<urn:IsDeductible>0</urn:IsDeductible>
<urn:InvoiceCitation>StateSalesTax</urn:InvoiceCitation>
<urn:PerUnit>0</urn:PerUnit>
<urn:Percent>4</urn:Percent>
<urn:TaxAmount>
<urn:Amount>15</
urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency>
</urn:TaxAmount>
<urn:TaxableAmount>
<urn:Amount>100</
urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency>
</urn:TaxableAmount>
<urn:PostingComponents>
<urn:item>
<urn:Description>State Sales tax</urn:Description>
<urn:ExternalTaxType><urn:UniqueName>StateSalesTax</
urn:UniqueName></urn:ExternalTaxType>
<urn:FormulaString>NetAmount</urn:FormulaString>
<urn:Percent>15</urn:Percent>
<urn:InvoiceCitation>InvoiceCitation1</
urn:InvoiceCitation>
<urn:IsDeductible>false</urn:IsDeductible>
<urn:TaxAmount><urn:Amount>10</urn:Amount>
<urn:Currency><urn:UniqueName>USD</urn:UniqueName></
urn:Currency></urn:TaxAmount>
<urn:TaxableAmount>
<urn:Amount>100</
urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency>

Tax and charge configuration

Sample requests and responses in third-party tax calculation PUBLIC 123
 </urn:TaxableAmount>
<urn:PostingInstructions>
<urn:item>
<urn:Name>TaxAuthority</urn:Name>
<urn:Value>State Department of Revenue</
urn:Value>
</urn:item>
<urn:item>
<urn:Name>AccountInstruction</urn:Name>
<urn:Value>NVV</urn:Value>
</urn:item>
</urn:PostingInstructions>
</urn:item>
<urn:item>
<urn:Description>State Sales tax</urn:Description>
<urn:ExternalTaxType><urn:UniqueName>StateSalesTax</
urn:UniqueName></urn:ExternalTaxType>
<urn:FormulaString>NetAmount</urn:FormulaString>
<urn:Percent>15</urn:Percent>
<urn:InvoiceCitation>InvoiceCitation1</
urn:InvoiceCitation>
<urn:IsDeductible>false</urn:IsDeductible>
<urn:TaxAmount>
<urn:Amount>5</
urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency>
</urn:TaxAmount>
<urn:TaxableAmount>
<urn:Amount>100</
urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency>
</urn:TaxableAmount>
<urn:PostingInstructions>
<urn:item>
<urn:Name>TaxAuthority</urn:Name>
<urn:Value>State Department of Revenue</
urn:Value>
</urn:item>
<urn:item>
<urn:Name>AccountInstruction</urn:Name>
<urn:Value>ESE</urn:Value>
</urn:item>
</urn:PostingInstructions>
</urn:item>
</urn:PostingComponents>
</urn:item>
<urn:item>
<urn:IsBuyerPayableTax>false</urn:IsBuyerPayableTax>
<urn:AbatementPercent>100</urn:AbatementPercent>
<urn:Category>POInv</urn:Category>
<urn:Description>CountySalesTax</urn:Description>
<urn:ExternalTaxType>
<urn:UniqueName>CountySalesTax</urn:UniqueName>
</urn:ExternalTaxType>
<urn:FormulaString>NetAmount</urn:FormulaString>
<urn:IsDeductible>0</urn:IsDeductible>
<urn:InvoiceCitation>CountySalesTax</urn:InvoiceCitation>
<urn:PerUnit>0</urn:PerUnit>
<urn:Percent>4</urn:Percent>
<urn:TaxAmount>
<urn:Amount>10</
urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency>
</urn:TaxAmount>
<urn:TaxableAmount>
<urn:Amount>100</
urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency>
</urn:TaxableAmount>
<urn:PostingComponents>
<urn:item>
<urn:Description>County Sales tax</urn:Description>

Tax and charge configuration

124 PUBLIC Sample requests and responses in third-party tax calculation
 <urn:ExternalTaxType>
<urn:UniqueName>CountySalesTax</urn:UniqueName>
</urn:ExternalTaxType>
<urn:FormulaString>NetAmount</urn:FormulaString>
<urn:Percent>10</urn:Percent>
<urn:InvoiceCitation>InvoiceCitation1</
urn:InvoiceCitation>
<urn:IsDeductible>false</urn:IsDeductible>
<urn:TaxAmount>
<urn:Amount>10</
urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency>
</urn:TaxAmount>
<urn:TaxableAmount>
<urn:Amount>100</
urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency>
</urn:TaxableAmount>
<urn:PostingInstructions>
<urn:item>
<urn:Name>TaxAuthority</urn:Name>
<urn:Value>County Department of Revenue</
urn:Value>
</urn:item>
<urn:item>
<urn:Name>AccountInstruction</urn:Name>
<urn:Value>NVV</urn:Value>
</urn:item>
</urn:PostingInstructions>
</urn:item>
</urn:PostingComponents>
</urn:item>
</urn:ExternalTaxItem>
<urn:NumberInCollection>1</urn:NumberInCollection>
<urn:TaxCode>
<urn:Country><urn:UniqueName>US</urn:UniqueName></urn:Country>
<urn:UniqueName>I0</urn:UniqueName>
</urn:TaxCode>
</urn:item>
<urn:item>
<urn:ExternalTaxItem></urn:ExternalTaxItem>
<urn:NumberInCollection>2</urn:NumberInCollection>
</urn:item>
<urn:item>
<urn:ExternalTaxItem></urn:ExternalTaxItem>
<urn:NumberInCollection>3</urn:NumberInCollection>
</urn:item>
</urn:LineItems>
<urn:UniqueName>IR141120181414_LL_Granular_UnderTaxDispu-64</
urn:UniqueName>
</urn:item>
</urn:ProcureLineItemCollection_TaxServiceAPIResponse_Item>
</urn:TaxServiceExportReply>
</soapenv:Body>
</soapenv:Envelope>

Invoice with no tax, response with tax

 Sample Code

Invoice with no tax

<?xml version="1.0" encoding="UTF-8"?>

Tax and charge configuration

Sample requests and responses in third-party tax calculation PUBLIC 125
 <soap:Envelope xmlns:soap="http://schemas.xmlsoap.org/soap/envelope/"
xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns:xsi="http://www.w3.org/2001/
XMLSchema-instance">
<soap:Header>
<Headers xmlns="urn:Ariba:Buyer:vrealm_2205">
<variant>vrealm_2205</variant>
<partition>prealm_2205</partition>
</Headers>
</soap:Header>
<soap:Body>
<TaxServiceExportRequest xmlns="urn:Ariba:Buyer:TaxAPI"
partition="prealm_2205" variant="vrealm_2205">
<ProcureLineItemCollection_TaxServiceAPIRequest_Item>
<item>
<CompanyCode>
<UniqueName>3000</UniqueName>
</CompanyCode>
<DocumentDate>2020-03-24T06:19:10Z</DocumentDate>
<LineItems>
<item>
<BillingAddress>
<PostalAddress>
<City>Austin</City>
<Country>
<UniqueName>US</UniqueName>
</Country>
<PostalCode>78704</PostalCode>
<State>TX</State>
<Line1/>
<Line2/>
<Line3/>
</PostalAddress>
</BillingAddress>
<CommodityCode>
<UniqueName>006</UniqueName>
</CommodityCode>
<Description>
<CommonCommodityCode>
<Domain>unspsc</Domain>
<UniqueName>14111514</UniqueName>
</CommonCommodityCode>
<UnitOfMeasure>
<UniqueName>EA</UniqueName>
</UnitOfMeasure>
</Description>
<LineType>
<UniqueName>_CatalogItem</UniqueName>
<Category>1</Category>
</LineType>
<NetAmount>
<Amount>1000.00000</Amount>
<Currency>
<UniqueName>USD</UniqueName>
</Currency>
</NetAmount>
<NumberInCollection>1</NumberInCollection>
<ParentLineNumber>0</ParentLineNumber>
<Quantity>1.00000</Quantity>
<ShipTo>
<PostalAddress>
<City>SEATTLE</City>
<Country>
<UniqueName>US</UniqueName>
</Country>
<PostalCode>98131</PostalCode>
<State>WA</State>
<Line1>Broadway 3101</Line1>
<Line2/>

Tax and charge configuration

126 PUBLIC Sample requests and responses in third-party tax calculation
 <Line3/>
</PostalAddress>
</ShipTo>
<SupplierLocation>
<PostalAddress>
<City>Melrose Park</City>
<Country>
<UniqueName>US</UniqueName>
</Country>
<PostalCode>60164</PostalCode>
<State>IL</State>
<Line1/>
<Line2/>
<Line3/>
</PostalAddress>
</SupplierLocation>
<TaxExclusion>false</TaxExclusion>
<ShipFromAddress>
<PostalAddress>
<Country>
<UniqueName>DE</UniqueName>
</Country>
<State>16</State>
<PostalCode/>
<City>Thuringia</City>
<Line1>12354 NE Peterkort</Line1>
<Line2/>
<Line3/>
</PostalAddress>
</ShipFromAddress>
<OriginalSupplierAmount>
<Currency>
<UniqueName>USD</UniqueName>
</Currency>
<Amount>1000.00000</Amount>
</OriginalSupplierAmount>
<SupplierID>0000003001</SupplierID>
</item>
</LineItems>
<OrganizationName>3000</OrganizationName>
<OrganizationUnit>CompanyCode</OrganizationUnit>
<Type>ariba.invoicing.core.InvoiceReconciliation</Type>
<UniqueName>IRInvoiceWithoutTax-1791</UniqueName>
<DocumentSubType>standard</DocumentSubType>
<RequestType>TaxCalculation</RequestType>
</item>
</ProcureLineItemCollection_TaxServiceAPIRequest_Item>
</TaxServiceExportRequest>
</soap:Body>
</soap:Envelope>

 Sample Code

Response with tax

<?xml version="1.0" encoding="UTF-8"?>

<SOAP-ENV:Envelope xmlns:SOAP-ENV="http://schemas.xmlsoap.org/soap/envelope/">
<SOAP-ENV:Header/>
<SOAP-ENV:Body>
<ns2:TaxServiceExportReply xmlns:ns2="urn:Ariba:Buyer:TaxAPI">
<ns2:ProcureLineItemCollection_TaxServiceAPIResponse_Item>
<ns2:item>
<ns2:ExternalTaxResponseStatus>
<ns2:Description xmlns:xsi="http://www.w3.org/2001/
XMLSchema-instance" xsi:nil="true"/>

Tax and charge configuration

Sample requests and responses in third-party tax calculation PUBLIC 127
 <ns2:ErrorCode xmlns:xsi="http://www.w3.org/2001/
XMLSchema-instance" xsi:nil="true"/>
<ns2:ErrorLocationPath xmlns:xsi="http://www.w3.org/2001/
XMLSchema-instance" xsi:nil="true"/>
<ns2:Success>true</ns2:Success>
</ns2:ExternalTaxResponseStatus>
<ns2:LineItems>
<ns2:item>
<ns2:ExternalTaxItem>
<ns2:item>
<ns2:AbatementPercent>100.00</
ns2:AbatementPercent>
<ns2:AccountInstruction>WA2</
ns2:AccountInstruction>
<ns2:Category>CU</ns2:Category>
<ns2:Description>State Sales/Use</
ns2:Description>
<ns2:ExternalTaxType>
<ns2:UniqueName>State Sales/Use</
ns2:UniqueName>
</ns2:ExternalTaxType>
<ns2:FormulaString>USBG2: Buyer-assessed
consumers use tax applies.|9970|P</ns2:FormulaString>
<ns2:InvoiceCitation>Consumer's Use Tax</
ns2:InvoiceCitation>
<ns2:IsDeductible>false</ns2:IsDeductible>
<ns2:Percent>6.500</ns2:Percent>
<ns2:TaxAmount>
<ns2:Amount>65.00</ns2:Amount>
<ns2:Currency>
<ns2:UniqueName>USD</ns2:UniqueName>
</ns2:Currency>
</ns2:TaxAmount>
<ns2:TaxAuthority>WA - STATE SALES/USE TAX</
ns2:TaxAuthority>
<ns2:TaxableAmount>
<ns2:Amount>1000.00</ns2:Amount>
<ns2:Currency>
<ns2:UniqueName>USD</ns2:UniqueName>
</ns2:Currency>
</ns2:TaxableAmount>
<ns2:IsBuyerPayableTax>false</
ns2:IsBuyerPayableTax>
</ns2:item>
<ns2:item>
<ns2:AbatementPercent>100.00</
ns2:AbatementPercent>
<ns2:AccountInstruction>WA2</
ns2:AccountInstruction>
<ns2:Category>CU</ns2:Category>
<ns2:Description>City Sales/Use</
ns2:Description>
<ns2:ExternalTaxType>
<ns2:UniqueName>City Sales/Use</
ns2:UniqueName>
</ns2:ExternalTaxType>
<ns2:FormulaString>USBG2: Buyer-assessed
consumers use tax applies.|9971|P</ns2:FormulaString>
<ns2:InvoiceCitation>Consumer's Use Tax</
ns2:InvoiceCitation>
<ns2:IsDeductible>false</ns2:IsDeductible>
<ns2:Percent>3.500</ns2:Percent>
<ns2:TaxAmount>
<ns2:Amount>35.00</ns2:Amount>
<ns2:Currency>
<ns2:UniqueName>USD</ns2:UniqueName>
</ns2:Currency>
</ns2:TaxAmount>

Tax and charge configuration

128 PUBLIC Sample requests and responses in third-party tax calculation
 <ns2:TaxAuthority>WA - SEATAC, CITY SALES/
USE TAX</ns2:TaxAuthority>
<ns2:TaxableAmount>
<ns2:Amount>1000.00</ns2:Amount>
<ns2:Currency>
<ns2:UniqueName>USD</ns2:UniqueName>
</ns2:Currency>
</ns2:TaxableAmount>
<ns2:IsBuyerPayableTax>false</
ns2:IsBuyerPayableTax>
</ns2:item>
</ns2:ExternalTaxItem>
<ns2:NumberInCollection>1</ns2:NumberInCollection>
<ns2:TaxCode>
<ns2:Country>
<ns2:UniqueName>US</ns2:UniqueName>
</ns2:Country>
<ns2:UniqueName>C1</ns2:UniqueName>
</ns2:TaxCode>
</ns2:item>
</ns2:LineItems>
<ns2:UniqueName>IRInvoiceWithoutTax-1791</ns2:UniqueName>
</ns2:item>
</ns2:ProcureLineItemCollection_TaxServiceAPIResponse_Item>
</ns2:TaxServiceExportReply>
</SOAP-ENV:Body>
</SOAP-ENV:Envelope>

Tax and charge configuration

Sample requests and responses in third-party tax calculation PUBLIC 129
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Tax and charge configuration

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