ONESOURCE™

INDIRECT TAX INTEGRATION

FOR SAP

CONFIGURATION GUIDE FOR SAP TABLES

PRODUCT VERSION 6.7.X.X

Document Version 1
ii

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DOCUMENT HISTORY
VERSION VERSION DATE SUMMARY
NUMBER

1 July 2022 First release of ONESOURCE Indirect Tax Integration for SAP
Configuration Guide for SAP Tables 6.7.X.X
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TABLE OF CONTENTS
Table of Contents iv

Introduction 1
Welcome to ONESOURCE Indirect Tax Integration for SAP 1
Who Should Read This Guide? 2
Prerequisites 2
Resources 4
Support Protocol 5
Style Conventions 5
Standard SAP Configuration Requirements 6
Configuration Within FI Module 6
Configuration Within SD Module 38
Configuration Within MM Purchasing Module 57
SAP Master Data Setup 68
Assign Tax Indicator in the Material Master Sales Organization View 68
Maintain Default Values for Tax Codes 70
Maintain Commodity Code 71
Maintain Commodity Code in HANA Systems 72
Assign Tax Indicator in the Customer Master 73
Maintain Condition Type ZITD to Determine Tax Code 74
Maintaining Zone Aliases 76
Other Features 79
Setting a Default Tax Code for Purchasing Transactions 79
Tax Code Selection for Transactions 82
INTRODUCTION

Welcome to ONESOURCE Indirect Tax Integration for SAP

Corporations using SAP as their Enterprise Resource Planning (ERP) system can simplify their worldwide
Indirect Tax requirements by implementing ONESOURCE Indirect Tax Suite. The suite includes Determination,
Integration for SAP, Reporting, and Compliance. The benefits provided by ONESOURCE Indirect Tax Suite are:

l Fast, accurate sales, use, consumer’s use tax, and VAT results.

l Monthly tax rate and rules updates for over 175 countries.

l Integrated tax calculation with SAP minimizing user decisions and tax errors.

l Removal of the need to change SAP tax codes each time a rate/rule changes, eliminating business
interruptions, and running out of tax codes in SAP.

l Complete audit database from which you can generate both standard and custom reports as well as returns.

ONESOURCE Indirect Tax Integration for SAP 6 is a totally new interface designed, built, and maintained by
Thomson Reuters. It’s a new global tax integration solution designed from the ground up with integration pointing
into SAP ECC application modules as desired. It consists of a data collector, tax interface, and return process of
tax results to the calling application with G/L integration in support of downstream SAP processes such as
standard VAT reports and returns processing. It makes use of the SOAP (Simple Object Access Protocol)
provided by SAP to communicate with ONESOURCE Indirect Tax Determination. The new Integration enables
worldwide tax calculations, including VAT, US Sales and Use Tax, and other country-specific taxation.

The interface is entirely built within the SAP Development Workbench, including a user menu for all interface
related configurations, setups, and reports. The interface has a new field mapping solution allowing a Tax
Business Analyst to map SAP data to Determination and vice versa via a customization table, eliminating most of
the user-exit coding of the past. Tax calculation logs can be accessed via a transaction with a search function
from within SAP greatly simplifying tax setup, analysis, and troubleshooting.

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Introduction

Who Should Read This Guide?

If you are responsible for overseeing setting up ONESOURCE Indirect Tax Integration for SAP, you will need to
coordinate help from the following people:

l SAP Business Systems Analyst

l SAP Configuration Consultant

l SAP Technical Resource (ABAP Programmer)

l SAP Security Contact

l Tax Professional

Make this guide available to each of these contributors to ensure you have a successful installation.

Prerequisites
For a seamless and successful deployment of Integration for SAP we highly recommend that you follow this
sequence of documents:

l User Guide

l Installation and Programmers Guide

l Configuration Guides

When working on Integration for SAP you must have a deep knowledge of the SAP tax features, covering all
aspects of FI, MM, and SD and have spent significant time either as an expert configurator or consultant in these
areas. Because the setup of tax integration with ONESOURCE Indirect Tax also includes technical work in the
ABAP Workbench, such as data dictionary changes and ABAP coding, you must be able to understand and
interpret these changes as well. We recommend that you assemble a team to implement this product because it
requires both functional and technical input. Your team should include someone who thoroughly understands
business requirements and processes, as well as someone who can implement the required software changes.

Please take the following into account before setting up the Integration for SAP:

l This guide assumes a fresh install of the Integration for SAP. Customers who are upgrading from a prior 5.x
version of Integration should contact Thomson Reuters Indirect Tax.

l Minimum SAP system version must be ECC 6.0, EHP 5. Please see tested platforms by Thomson Reuters
in Platform Information section.

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Introduction

l Minimum Determination version must be at 5.5 or greater due to the use of the Tax Code Qualifier function.

l It is assumed that the persons who install, configure, and use the tax interface in SAP have some basic
understanding of the overall ONESOURCE Indirect Tax Suite of products and how they interact with each
other.

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Introduction

Resources
RESOURCE DESCRIPTION

Customer Look for answers in the Knowledge Base, or open a support ticket.
Support

User Guide This guide provides an overview of the architecture, basic business processes and touch
points as they relate to Sales and Use tax, as well as VAT scenarios in FI, SD, and MM.
The target audiences are the Business Systems Analysts, Consultants, and Tax
Professionals who set up the tax processes in SAP.

Installation and This guide instructs you how to install the Integration for SAP. The target audiences are
Programmers the Basis personnel that will process the application of the transports to the SAP system
Guide and the ABAP programmers who will perform the required INCLUDE statements within
the user exits and other coding blocks. There is also discussion in this manual for the
ABAP programmer regarding customization logic and how custom additions to the
programs should be added to the system if needed in the future.

This guide describes the supported combinations of operating systems, databases, and
application servers/web containers.

This guide lists the end-of-life dates for ONESOURCE Indirect Tax Integrations for SAP.

Consult this guide to see which combinations of software Thomson Reuters tests with
Integrations.

Configuration This guide instructs you how to configure and set up SAP tables and processes to enable
Guide for SAP tax calculations to meet your unique requirements.
tables

Configuration This guide instructs how to configure and set up ONESOURCE Indirect Tax tables and
Guide for processes to enable tax calculations to meet your unique requirements.
ONESOURCE
Tables

Configuration This guide instructs you how to configure and set up SAP and Integration tables and
Guide for processes to enable tax calculations to meet your unique requirements for special
Special functions within SAP, including Plants Abroad, Cash Discounts, Deferred Taxes, and
Functions Service Entry Sheets.

Vendor Charged This guide describes functionality for integrating ONESOURCE Indirect Tax Enterprise
Tax Cloud VCT calculations with SAP Global Next transactions.
(VCT) Guide
This functionality is for the United States only.

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Introduction

Support Protocol
The ONESOURCE Indirect Tax Integration for SAP is built, maintained, and owned by Thomson Reuters Tax &
Accounting Indirect Tax. The business unit has a dedicated group of SAP Business Systems Analysts, ABAP
Programmers, and Quality Assurance people who have built this product. We follow SAP best practices,
development standards, and strive to minimize the impact this solution will have on your SAP environment. With
any 3rd party Add-On in SAP, the vendor providing the solution is responsible for support of that Add-On. In the
case of an issue with the ONESOURCE Indirect Tax Integration for SAP please follow these simple steps to open
a support ticket with Thomson Reuters:

1. Identify the potential issue and gather all necessary facts (log files, scenarios, configurations, screen prints).

2. Provide steps to reproduce the scenario leading to the issue.

3. Provide system environment information such as your SAP Version, EHP and SP level, as well as the
Integration version.

4. Open a support ticket with Indirect Tax at:

https://tax.thomsonreuters.com/support/ONESOURCE/indirect-tax/

Style Conventions
Style conventions provide a guide as to how to interpret information.

Bold text indicates most user interface elements, such as:

l Data you are expected to enter, such as in a text field

l Pages, buttons, tabs, and field names

l Dialog boxes, drop-down lists, selections within lists, and check box titles

l Windows

l Menu items

Italic text indicates the following:

l File and folder names

l Software programming terminology and executable files

l Document titles

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Standard SAP Configuration Requirements

CAPITALIZED text indicates keyboard commands, such as ENTER, or database components.

Courier text indicates command-line input/output.

<brackets> indicate user entry. For example, <host> indicates you should replace the text and angle brackets
with your server's name.

Book titles are shown in italics and sections within a book are in quotation marks, such as “Tips and Tricks” in the
ONESOURCE Indirect Tax User Guide.

Indicates suggestions or additional, detailed information.

Indicates important text that should be carefully reviewed before proceeding.

STANDARD SAP CONFIGURATION REQUIREMENTS

This chapter will cover the basic tax relevant setup for the core modules of FI, SD, and MM.

Configuration Within FI Module

For Integration to work seamlessly we require configuration of SAP Master Data Setup and
ONESOURCE Indirect Tax Configuration Requirements be done as outlined in subsequent
sections.

Displaying the Standard SAP Access Sequence MWST

Verify that the standard SAP Access Sequence MWST is present and has the desired settings. The MWST
access sequence should be already in your system as provided from SAP. We need to have you verify this and
make sure the settings are as shown below. If it is not as shown below then you will need to add or modify it to use
for creating the following condition type configuration steps.

1. From IMG (SPRO), navigate to Financial Accounting > Financial Accounting Global Settings > Tax
on Sales/Purchases > Basic Settings > Check Calculation Procedures.

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2. Select Check Calculation Procedures and click on

3. Select Access Sequences from the pop-up window and click Choose.

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4. Select the existing access sequence MWST to verify settings.

5. Display the Fields on access sequence. It should look like the screen shot below.

Creating New Condition Types for Global Tax

Here you are creating new condition types for tax calculations to the FI side. Later you will have to do a similar
process for the same codes on the SD side. Do not confuse the two as they are different. To process for the FI
module:

1. From IMG (SPRO), navigate to Financial Accounting > Financial Accounting Global Settings > Tax
on Sales/Purchases > Basic Settings > Check Calculation Procedure

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2. Select Define Condition Types from the pop-up window and click Choose.

3. Create a new condition type by copying the existing XP1I to ZITR changing the description to “Return
Ind.Tax Value” and the Cond. Category from “1” to “D” as shown in the screen shot below. Make sure the
fields show the same as the screen shot below and then save the new ZITR condition type.

In the prior Integration multiple condition types were set up and tied to the various jurisdiction
levels. With the change to dynamic assignment of the condition types and tax authorities, this
is no longer needed. However additional condition types may be needed if you desire to
configure a condition for non-percentage-based conditions like fee type calculations or
statistical postings. Consult with your Professional Services representative on the possible
need for additional condition types to meet your tax requirements.

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4. Create a new condition type to support Fees by copying the existing ZITR to ZITF changing the description
to “Return Ind.Fee Value” and the Calculat. type from “A” to “B” as shown in the screen shot below. Make
sure the fields show the same as the screen shot below and then save the new ZITF condition type.

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Once you finish these tasks, you should have two conditions types available as shown in the screen shot
below.

Creating New Country-Specific Tax Procedures

You need to create new tax procedures for each country you want to integrate with Determination.

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1. From IMG (SPRO) navigate to Financial Accounting > Financial Accounting Global Settings > Tax on
Sales/Purchases > Basic Settings > Check Calculation Procedure

2. Select Check Calculation Procedure and click on .

3. Select Define Procedures from the pop-up window and click Choose.

4. Select the country tax procedure template you want to integrate with ONESOURCE Indirect Tax. For
example, for Great Britain you would select TAXGB.

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5. Copy the selected template to one with a pre-pended Z, such as ZTAXGB or ZTPGB. Select COPY ALL in
the pop-up window.

6. SAVE the new template.

7. Highlight the copied procedure (in this example ZTPGB) and double-click Control Data in the left-hand
navigation window.

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8. Perform the following actions on this page:

l Insert new step 107 using IDT Get Data for the description and CalType formula 990.

l Change step 110 to CTyp ZITR and assign CalType formula 991.

l Change step 120 to CTyp ZITF and assign CalType formula 991.

l Delete lines 130 thru 160 so that the procedure now looks like the example below.

CalType 990 and 991 may be different numbers in your system if upon the transport
installation and load instructions in the Installation Guide you elected to assign different
numbers to them due to a numbering conflict.

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9. SAVE your changes.

10. Repeat this process for each country you want to configure. Each country may use the same tax procedure,
or you may choose to have them set up by country. Each however could be different if other condition types
are needed for other than indirect taxes, like withholding taxes. These other taxes could still use native SAP.

Assigning the Newly-Created Tax Procedure to the Appropriate Countries

To activate tax calculation for a country using the new tax procedures, you must assign these procedures to the
appropriate countries.

1. From IMG (SPRO), navigate to Financial Accounting > Financial Accounting Global Settings > Tax
on Sales/Purchases > Basic Settings > Assign Country to Calculation Procedure.

2. Select Assign Country to Calculation Procedure and click on

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3. Replace the existing tax procedure for each newly configured country with the Z procedure you created
previously. For example, for Great Britain GB, you would replace TAXGB with ZTPGB.

4. SAVE your changes.

Changing the Message Control for Taxes

1. From IMG (SPRO), navigate to Financial Accounting > Financial Accounting Global Settings > Tax
on Sales/Purchases > Basic Settings > Change Message Control for Taxes.

2. Select Change Message Control for Taxes and click .

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3. Define Application area FS on the pop-up.

4. Define message 885 as shown below.

5. SAVE your work.

Defining Tax Codes for Sales and Purchases

This procedure describes how to set up the tax codes relevant to output and input taxes and create tax codes for
the new tax procedure ZTPGB.

Based on the relationship between the tax determination rule and the tax indicators maintained in the master
records, tax relevancy is defined, and a tax code is derived.

In the traditional SAP system, each tax code assigned to a country represents a tax rule and a tax rate. When you
implement the ONESOURCE Indirect Tax Determination, you need only a smaller set of tax codes to distinguish
between Output and Input Tax and the Tax Category. You will not need to create new tax codes every time an
authority’s rates have been updated.

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You will create new tax codes based on your business requirements, including one or more each for Output Tax
and Input Tax. See Tax Code Qualifier Configuration section of the Configuration Guide ONESOURCE tables to
learn how the SAP tax code setup interacts with Determination and what considerations should be taken into
account.

1. Transaction Code: FTXP.

2. Define your Output Tax Code. Enter the country code for which you would like to maintain new tax codes
and ENTER.

3. On the tax code maintenance page, enter a two-letter code (for example, O1 for an Output driver tax code)
and ENTER.

4. On the pop-up window that appears, define the tax code properties as shown in this example or based on
your business needs. ENTER.

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5. On the Overview page, enter tax rates of zero for the following Tax Type as shown below.

The tax percentage rate must be zero. This is a change from our prior Integration which was
using the SAP External Tax Interface that uses a tax rate of 100% on the tax code set up.

If you enter the wrong tax rate or enter it on a wrong line, you cannot delete the entry. You must
use the “Deactivate line” function in the navigation bar instead. If you miss doing this the
system will retain the incorrect data in the table and will not calculate correctly.

6. Repeat the process for additional tax codes that are needed. The example below shows a sample input
driver tax code.

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You may have noticed in the screen print above that there is no account key displaying on the ZITR and ZITF tax
rate lines. This is because the account keys are not pre-defined as part of our new dynamic tax calculation
process. The account keys are now added later in the process via the Tax Code Qualifier condition logic. See
section of the Configuration Guide ONESOURCE tables “Tax Code Qualifier Configuration”.

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After completing the procedure above you have successfully set up two driver tax codes that enable you to
integrate with ONESOURCE Indirect tax, one for Sales and the other for Purchases. However, more tax codes
will be required for any given country configuration. The Tax Code Qualifier Configuration topic provides more
information on this step.

Check ID field: This field is used to cause a hard error check if a manual tax amount is entered, and the amount
calculated by SAP as a product of the base amount and tax rate tied to the tax code differ by more than one
currency unit. Because the tax rate tied to the tax code for our Integration is zero, we do not recommend setting
this field. It should be considered only if the tax code carries a rate and is used for native SAP calculations.

EU code field: SAP documentation on this code explains its use on the EC Sales List in SAP as applicable to
reporting classification. This code also carries out checks during document entry regarding the presence of
customer of vendor registration codes in the master records. If you are not storing the registration number in this
master field but instead using Determination configuration then we do not recommend using this designator as it
is designed to work with SAP native processes and may cause a problem with your Determination configuration
and approach. We recommend complete testing if you choose to use this as it has not been tested with our
external tax engine.

Tgt Tax Code Output and Input: These fields are used by native SAP for deferred tax treatment when the
deferred amounts are acquisition or reverse charge tax types that will charge both a recovery and liability side to
the tax transaction. They are used with native processes within SAP and have not been tested with our
Determination system for external tax calculations. We do not recommend use of them and further testing would
be required.

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Tol.per.rate: For the tax code, this defines the percentage rate which is accepted as tolerance between a
calculated value and a value you have entered. The tolerance amount arises from the application of percentage
rates to the amount determined by the system. If the difference between the tax value entered and the value
calculated by the system is lower than the tolerance amount, the document is posted by the system and no
warning or error message is issued. We are aware of customers that are using the tolerance percentage check
with our Determination tax calculations but recommend full testing on a user’s part to ensure there are no
conflicts with its use with your specific Determination and Integration configuration.

Correction of Tax Rate for ZITF and Other Fee-Based Calculations

In the step above you entered an amount of 0.00 on the line of the tax procedure for all condition types, including
ZITF which is a fee based. Due to logic in SAP the amount is incorrectly recognized in another SAP table as a
percentage. To fix this, you will need to take an additional step. This process works for ECC systems however
due to a table change in HANA, it no longer works in a HANA environment. Look below this process for
instructions how to change this in a HANA environment.

Changes for ECC environment

Transaction Code: FV12, enter condition type ZITF.

ENTER and go to the next screen.

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Enter the country and then hit the Execute button. The next screen will show all of the ZITF conditions that have
been entered. Note that if you see any tax code line that has the % sign after the amount then they will have to be
changed.

Reminder: The rate will show in this table as blank because we are now entering zero rather than
100 for the tax amount field in FTXP transaction.

Next go to the line that shows the percentage sign and hit the space bar to enter a blank amount and hit enter.
The amount will appear again, but this time will not have the percentage sign. Next hit Save to update the change
in the table. After this correction your flat fee condition type should calculate correctly as a fee instead of as a
percentage for various field displays.

Every time you create a new tax code for a fixed amount or fixed quantity calculation in any tax
procedure, the % sign should be cleared as explained above. Not doing so will lead to issues when
posting to the General Ledger accounts.

Making this change in a HANA client

In HANA the table structure has changed, and you cannot simply remove the % without a few extra steps
involved. See below:

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1. Go to your ZITF condition type and make the following corrects to the condition configuration:

The ZITF condition should be changed to “Without Popup” for the Delete fr. DB field. The Condition Class
should be temporarily changed to A for “Discount or surcharge” from its normal status of “D”. This is
temporary as the class needs to be reset to “D” in order for programs to pick up the condition correctly for
the call to ONESOURCE. Save these two changes.

2. Next step is to go to transaction FV12 as noted before. This time you will take a screen shot of the tax codes
that are present for this country and save it to the side. You will then select all and use the delete button at
the bottom of the screen to remove the records.

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After noting all your tax codes, use select all button, then use delete. This will bring up a pop-up that says it
will be deleted upon saving thechange. Save the change.

3. Next go back into FV12 and add back the tax codes, this time entering the currency code in the unit column
for each line and hit enter. Table should look like below example:

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Note that unit is now changed from % to the currency of the country and then save this view.

4. Now go back to the condition and change the condition class back from A to D.

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Now the FV12 screen for this will look like the below example and have the % sign changed to a currency
code for all the related tax codes.

Defining a Driver Tax Code for U.S. Sales Tax Consumer Use Tax Accrual
Only in the US and Puerto Rico will you have the need for a third driver tax code U1 that will be used for the
accrual of self- accrued consumer use tax. In this scenario we set up a driver tax code in the US. As in the prior
examples set up this tax code using transaction code FTXP and follow the screen displays shown below. You will
also have to complete the adjustment shown directly above using FV12 transaction code to correct the flat fee
condition type.

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Defining New Account Assignment Keys

Based on your country set up and creation of needed tax codes you may or may not desire to set up additional
account assignment keys for use in combination with the tax codes for your tax policy implementation. Normally
the SAP offered account assignment keys of MWS, VST, ESA, ESE, etc. may be enough however additional
account assignment keys may be helpful for separating some tax scenarios for better matching to your tax
compliance reporting needs. This could be true with the U.S. sales tax set up if you desire to have separate G/L
accounts by state for example.

For the purpose of this example we will show the addition of an input account key for California sales tax.

Transaction Code: OBCN

Once in the screen click on the menu option for New Entries.

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In this example we entered the account assignment key as CA3 and gave it a description. The tax type for input
tax is a 2 per the drop down.

Posting indicator should be 2 for the system to post to a separate G/L account number. However, if you need
another account key set up like the current NVV account key then the posting indicator would be set to 3 for
distribution to the relevant expense/revenue items. See pop-up list for posting indicator as shown below.

SAVE your setup.

Attention HANA Users: HANA system table structure has a view conflict that they have applied
note 2071361 and as a result have created a new error message FC440. Result is that account key
of CO1 is now used in another program for FI to CO reconciliation and because of that cannot be
used in OBCN or ob40 for the account key for tax. Avoid using CO1 as an account key for tax
calculation.

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Setting Up a Blank Account Key

With the new dynamic creation of condition types on the tax procedure (in FI), pricing procedure (in SD), and the
calculation schema (in MM/PP), you will see that the account key field is left blank. This can sometimes cause a
FI account assignment error in your system depending on the way you have your pricing procedures set up. To
avoid this error we highly recommend that you use OBCN transaction to place in your list of account assignment
keys a “blank” account assignment as this will prevent the error from occurring and make for a smooth transition
to the account assignment that is coming in from your Tax Code Qualifier set up and assignment. Follow example
below to add this blank item to the table.

Transaction code: OBCN

Your table should look like this with the new blank key.

Defining Tax Accounts

For each tax procedure you will need to know the SAP chart of accounts that is used for that company code as
well as the list of all account keys and tax codes that are referenced on your tax policy and tax code qualifier set
up. For our example the GB chart of accounts is “INT” and the account keys from the tax code qualifier and tax
policy include MWS, VST, ESA, ESE.

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As an example, the table below illustrates an assignment of accounts for the GB company code 2000 and the tax
procedure ZTPGB. Your account assignments, chart of accounts, and tax code assignment will be different. This
is an example.

COUNTRY / CHART OF ACCOUNT TAX DESCRIPTION G/L

COMPANY CODE ACCOUNTS KEY CODE ACCOUNT

GB/2000 INT Driver-not O1 Standard output default Driver only

assigned

GB/2000 INT Driver-not I1 Standard input default Driver only

assigned

GB/2000 INT MWS A0 Standard output tax 175000

exempt

GB/2000 INT MWS A1 Standard rate output tax 175001

GB/2000 INT MWS A2 Reduced rate output tax 175002

GB/2000 INT MWS A3 Zero rate output tax 175003

GB/2000 INT MWS A5 Deferred tax output tax 175013

GB/2000 INT MWS A7 Not liable output tax 175000

GB/2000 INT MWS YA Override output tax 175000

exempt

GB/2000 INT MWS Y1 Override Standard rate 175001

output tax

GB/2000 INT MWS Y2 Override Reduced rate 175002

output tax

GB/2000 INT MWS Y3 Override Zero rate 175003

output tax

GB/2000 INT MWS Y5 Override Deferred tax 175013

output tax

GB/2000 INT MWS Y7 Override Not liable 175000

output tax

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COUNTRY / CHART OF ACCOUNT TAX DESCRIPTION G/L

COMPANY CODE ACCOUNTS KEY CODE ACCOUNT

GB/2000 INT MWS D3 GB deferred payment 175000

output tax

GB/2000 INT VST E2 GB deferred invoice 154001

input tax

GB/2000 INT VST E3 GB deferred payment 154002

input tax

GB/2000 INT VST V0 Standard input tax 154000

exempt

GB/2000 INT VST V1 Standard rate input tax 154001

GB/2000 INT VST V2 Reduced rate input tax 154002

GB/2000 INT VST V3 Zero rate input tax 154003

GB/2000 INT VST V5 Deferred tax input tax 154013

GB/2000 INT VST V6 Non recoverable input 154000

tax

GB/2000 INT VST V7 Not liable input tax 154000

GB/2000 INT VST ZA Override Standard input 154000

tax exempt

GB/2000 INT VST Z1 Override standard input 154001

tax

GB/2000 INT VST Z2 Override reduced rate 154002

input tax

GB/2000 INT VST Z3 Override zero rate input 154003

tax

GB/2000 INT VST Z5 Override deferred input 154013

tax

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COUNTRY / CHART OF ACCOUNT TAX DESCRIPTION G/L

COMPANY CODE ACCOUNTS KEY CODE ACCOUNT

GB/2000 INT VST Z6 Override non- 154000

recoverable input tax

GB/2000 INT VST Z7 Override not liable input 154000

tax

GB/2000 INT ESA V4 Reverse charge input 154011

tax

GB/2000 INT ESA V8 Acquisition tax input tax 154011

GB/2000 INT ESA V9 Import input tax 154011

GB/2000 INT ESE V4 Reverse charge output 154012

tax

GB/2000 INT ESE V8 Acquisition tax output 154012

tax

GB/2000 INT ESE V9 Import output tax 154012

GB/2000 INT YYY YY Fallback input tax 154999

GB/2000 INT XXX XX Fallback output tax 175999

To assign the GL accounts for posting taxes, specific to your accounting needs. Please have your accounting
department provide guidelines to complete this configuration.

1. From IMG (SPRO), navigate to Financial Accounting > Financial Accounting Global Settings> Tax on
Sales/Purchases > Posting > Define Tax Accounts.

Transaction Code: OB40

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Once you click on the Define Tax Accounts, double click on the transaction key you want to maintain,
which is the same as the account key used in the Tax Code Qualifier configuration.

2. A pop-up will ask you which chart of accounts. Enter the chart of accounts for your company code.

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3. Maintain your G/L account assignments per tax code.

4. If you need to assign different accounts by tax code, you can change the Rule by selecting the Rule option in
the application menu. Below screen shows the rules page. In this example MWS was set up with the tax
code being relevant to the assignment.

You can change the G/L account assignment based on either the tax code of the transaction or on a
split based on Debit/ Credit on the transaction. The Posting Key option allows for modification to the
debit and credit indicator for the transaction. Normal default would be 40 for a debit and 50 for the
credit entry.

Assigning Tax Codes for Non-Taxable Transactions

1. From IMG (SPRO), navigate to Financial Accounting > Financial Accounting Global Settings> Tax on
Sales/Purchases > Posting > Assign Tax Codes for Non-Taxable Transactions.

Transaction Code: OBCL

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2. Select Assign Tax Codes for Non-Taxable Transactions and click Execute.

3. For the given company, set the data as shown below. The tax code used here should be the non-taxable
input and output tax codes that you created for this company code. Not necessarily the driver I1 and O1
codes that were created in the demonstration above. In this example we used V0 and A0 but yours could be
different from these based on your tax code assignment strategy.

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Configuration Within SD Module

Tax calculations in SD transactions are processed using a pricing procedure instead of the tax procedure used by
FI and MM-LIV. Therefore, new pricing procedures must be created, or existing ones need to be altered to enable
integration with Determination. The configuration steps described here cover the setup of new access
sequences, condition types, and changes to the pricing procedures.

For Integration to work seamlessly we require configuration of SAP Master Data Setup and
ONESOURCE Indirect Tax Configuration Requirements be done as outlined in subsequent
sections.

Creating a Simplified Access Sequence

The standard SAP access sequence for non-jurisdictional tax is MWST. You could use this access sequence for
Determination, but the maintenance condition records can be extensive. As an alternative documented here is a
simplified access sequence which could be used.

1. Menu path in SPRO: navigate to Sales and Distribution > Basic Functions > Pricing > Price Control >
Define Access Sequence

Transaction Code: V/07, click New Entries on the Overview page.

2. Create and save the new access sequence ZTAX as shown below:

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3. Select the record and double-click Accesses in the navigation panel.

4. Click New Entries on the Overview page and enter as you see in the screen below.

5. SAVE your work and then select line number 8 and then double click Fields in the navigation panel.

6. Replicate the Field Overview section for access line 8 as shown in the screen above and SAVE.

7. Go back to the original screen and select line 10 and go to the Fields option again. This time replicating the
Field Overview to match the screen below and SAVE again.

8. Repeat one more time for line 20 and input the Field Overview section as shown below and SAVE.

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9. EXIT the transaction when complete.

Creating New SD Condition Types

The standard SAP condition type MWST is set up to derive taxes based on SAP tax tables. To enable external
tax calculation using the Integration, you will need to create four new condition types:

l ZITD (Collect Per Document)

l ZITE (Call to Determination)

l ZITR (Percentage Tax Results from Determination)

l ZITF (Fee Tax Results from Determination)

For use of cash discount calculations, you will also need to verify that the condition type SKTO and SKTV are
already in existence in the table. If not, then you will want to create them as well as noted below.

1. From IMG (SPRO), navigate to Sales and Distribution > Basic Functions > Pricing > Pricing Control >
Define Condition Types.

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2. On the pop-up window select Maintain Condition Types.

3. On the main page navigate to Condition Type MWST and select the record.

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4. Select COPY from the navigation bar, and then update the page to match the values shown in the following
example. Make sure to assign the Access Sequence created in the prior step, in this example ZTAX.

Don’t forget the scale formula at the bottom of the screen under Scales section. This is your condition type
that was created as one of the first steps of the installation. Your number may be different if you assigned it
differently in your setup.

5. SAVE your work.

Repeat the above steps in ZITE, entering and saving the data as shown below. However, no access sequence is
needed here.

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For the third condition (ZITR), use reference condition XR1 instead of MWST as shown in step 2 above. Copy
XR1, use the following input data to maintain this condition. No access sequence is needed.

l Condition type description: Return IDT Tax Value

l Cond.category: D

l Calculat. type: A

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Save your work.

For the fourth condition ZITF, copy ZITR, and then enter the following data:

l Condition type description: Return IDT Fee Value

l Cond.category: D

l Calculat. type: B

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SAVE your work.

Verify that you also have in the condition type table the entries for SKTO and SKTV as they are used for cash
discount calculations. If they are not present in the table then create them to match the screens shown below.

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Now you have the following list of condition types set up for the pricing procedure.

CONDITION TYPE CONDITIONS AND CATEGORIES

Condition Type Text Condition Category Calculation Type

ZITD IDT Collect Data D A – Percentage

ZITE IDT Call Determin D A – Percentage

ZITF Return IDT Fee Value D B – Fixed amount

ZITR Return IDT Tax Value D A – Percentage

SKTO Cash Discount E A – Percentage

SKTV Cash Discount E A – Percentage

Creating a Pricing Procedure

SAP does not provide an out-of-the-box pricing procedure to make a call for tax calculation for countries other
than the US and Canada. Therefore, you must make configurations in the pricing procedure to enable the tax
calls.

Within the pricing procedure, the tax call to the external system is enabled by a set of condition types and the
condition value formulas 992, 993 and 994. (See Installation and Programmers Guide as your condition base
formula numbers may be different) The condition base formulas are created as part of the initial install. The steps
below describe the process of creating your price procedure.

1. From IMG (SPRO), navigate to Sales and Distribution > Basic Functions > Pricing > Pricing Control >
Define and Assign Pricing Procedures.

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2. Select Define and Assign Pricing Procedures and click on .

3. Select Maintain pricing procedures from the pop-up window and click CHOOSE.

We recommend that you copy one of the SAP country pricing procedure templates and make
your changes to that copy.

4. Select the template of the country in question (for example, RVAA01), then select COPY as…from the
navigation bar.

5. SAVE the procedure to a new name by changing the first letter to Z and PP for Pricing Procedure (for
example ZPPGB); enter the desired description (IDT Pricing Procedure - GB), and then ENTER. You may
decide to have a single pricing procedure for the entire EU and set others by region or choose to create
specific procedures for each country. This is your choice per your requirements.

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6. On the pop-up window, click copy all, confirm all informational messages, and then save your work.

7. Select your new pricing procedure, and then double-click Control Data in the navigation panel.

8. Navigate within the pricing procedure to the block containing the MWST condition type.

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9. Remove the MWST condition type and insert the new tax conditions as shown on the screen below. Pay
attention to the CalType column; values for these formulas are essential for tax integration. Make sure that
the cash discount CTyp. lines are also included.

Please pay special attention to the pair of conditions for cash discounts. If they are not present as we have
shown them in this print screen above, then cash discounts at time of payment will not work correctly. You
must have both STKV and STKO conditions present in all of your pricing procedures and MM calculation
schemas in order for the adjustment at time of payment to work correctly. See section in Appendix 1 on
Cash Discount configuration as well as MM calculation schema set up.

10. SAVE your work.

You might have to renumber some of the existing steps to make room for these four new conditions.

The CalType numbers shown here are 992, 993, and 994 however these are created as part of your
installation and could be different numbers.

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Assigning the New Pricing Procedure to Sales Transactions

To have your new pricing procedure determined by sales transactions, you must assign it to the valid combination
of sales organization, distribution channel, division and document procedure and sold-to-party pricing indicator, if
used in your setup.

1. Transaction Code: OVKK

2. Select Define and Assign Pricing Procedures and click on .

3. Double-click Define Pricing Procedure Determination in the pop-up window to select it.

4. Navigate to the appropriate Sales Organization where the new pricing procedure needs to be assigned.

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5. Replace the entries with the new procedure name wherever the external tax system needs to be called. For
example, replace RVAA01 with ZPPGB.

6. SAVE your work.

Repeat for each country-specific pricing procedure to integrate with Determination.

Define Tax Determination Rules

In SD, your tax code determination is based on the tax category and corresponding indicator assigned in the
customer master record and sales organization view on the material master.

The following configuration is required to assign a tax category to a country:

1. From IMG (SPRO), navigate to Sales and Distribution > Basic Functions > Taxes >Define Tax
Determination Rules.

2. Select Define Tax Determination Rules and click on .

3. Assign the new tax condition ZITD to the country for which you have created a tax procedure. For example:
GB.

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4. SAVE your work.

Define Tax Relevance of Customer Master Records

This configuration is required to set up a tax-relevant flag used in the Customer Master. You will be maintaining
those flags here. We recommend that you:

l Use 1 as Taxable

l Maintain each customer and material as taxable in SAP and allow the Determination to determine taxability.

1. From IMG (SPRO), navigate to Sales and Distribution > Basic Functions > Taxes > Define Tax
Relevancy of Master Records.

2. Select Define Tax Relevancy of Master Records and click on .

3. Double-click Customer Taxes in the pop-up window.

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4. Assign Tax Indicator to ZITD as shown below.

5. SAVE your work.

Define Tax Relevance of Material Master Records

Set up a tax classification used in the sales organization view of the material master and maintain the flags here.
We recommend that you:

l Use 1 as Taxable.

l Maintain each customer and material as taxable in SAP and allow the Determination to determine taxability.

1. From IMG (SPRO), navigate to Sales and Distribution > Basic Functions > Taxes >Define Tax
Relevancy of Master Records.

2. Select Define Tax Relevancy of Master Records and click on .

3. Double-click Material Taxes from the pop-up window.

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4. Assign Tax Indicator to ZITD as shown below.

5. SAVE your work.

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Configuration Within MM Purchasing Module

For Integration to work seamlessly we require configuration of SAP Master Data Setup and
ONESOURCE Indirect Tax Configuration Requirements be done as outlined in subsequent
sections.

Creating New Condition Types

The standard SAP condition type MWST is set up to derive tax based on SAP tax tables. To enable external tax
calculation using the Integration, you will need to create four new condition types:

l ZITD (Collect Per Document)

l ZITE (Call to Determination)

l ZITR (Percentage Tax Results from Determination)

l ZITF (Fee Tax Results from Determination)

You will also want to make sure the two condition types SKTO and SKTV for cash discounts are available in the
table for use on the calculation schema.

1. From IMG (SPRO), navigate to Materials Management > Purchasing > Conditions > Define Price
Determination Process > Define Condition Types

2. On the pop-up window select Define Condition Types.

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3. On the main page navigate to Condition Type MWST and select the record.

4. Select COPY from the navigation bar, and then update the page to match the values shown in the following
example.

5. SAVE your work.

Repeat the above steps for ZITE by copying ZITD, entering the data as shown below:

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6. SAVE your work.

For the third condition ZITR, use reference condition ZITE instead of MWST as shown in step 2. Copy ZITE,
and then enter the following data:

l Condition type description: Return IDT Tax Value

l Cond.category: D

l Calculat. type: A

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7. SAVE your work.

For the fourth condition ZITF, copy ZITR, then enter and SAVE the following data:

l Condition type description: Return IDT Fee Value

l Cond.category: D

l Calculat. type: B

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You will also want to make sure that there are two condition types set up for the cash discount process using the
calculation schema. To do this go back to the menu in step 1 and confirm that condition type SKTO and SKTV are
present and available to use. They should look like the samples we have below. If they are not there in your
environment, then use the same steps to create them as you did above.

This pair of discount conditions is required for you to get correct tax adjustments for VAT on cash discount at time
of payment. The SKTO and STKV conditions are not supplied in MM as part of an IDES system and will most
likely need to be added. They are provided as standard on the SD side, and you can reference them there to
create them again here for the MM purchasing side.

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Once you complete your configuration, you should have the following condition types available for the MM
Calculation Schemas.

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CONDITION TYPE CONDITIONS AND CATEGORIES

Condition Type Text Condition Category Calculation Type

ZITD IDT Collect Data D A – Percentage

ZITE IDT Call Determin. D A – Percentage

ZITF Return IDT Fee Value D B – Fixed amount

ZITR Return IDT Tax Value D A – Percentage

SKTO Cash Discount E A – Percentage

SKTV Cash Discount E A – Percentage

Creating a Calculation Schema

You must make configurations in the calculation schema to enable the tax calls. Calculation schemas in pricing
for MM are used in our new Integration in order to take advantage of document level calculation of tax as is
needed for max tax scenarios. See the User Guide for more discussion on this topic.

Within the calculation schema, the tax call to the external system is enabled by a set of condition types and the
condition value formulas 992, 993 and 994 therefore each calculation schema used for external calls needs to be
configured in a similar way. The steps below describe the process.

1. From IMG (SPRO), navigate to Materials Management > Purchasing > Conditions > Define Price
Determination Process > Define Calculation Schema.

We recommend that you copy one of the SAP country calculation schema templates and
make your changes to that copy.

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2. Select the template of the country in question (for example, RM1000), then select COPY as…from the
navigation bar.

3. SAVE the calculation schema to a new name by changing the first letter to Z (for example ZCSEU); enter
the desired description (IDT Calculation Schema - Std), and then press ENTER. You may decide to create a
single calculation schema for the EU or opt for separate schemas for each company code. This will be
dependent on your tax policy for each country and your individual reporting requirements.

4. On the pop-up window, click COPY ALL, confirm all informational messages, and then save your work.

5. Select your new calculation schema, and then double-click Control Data in the navigation panel.

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6. Insert the new tax conditions as shown on the screen below. Pay attention to the Cal Type column; values
for these formulas are essential for tax integration. Make sure that the cash discount CTyp lines are also
included.

If you do not set up the STKO and STKV conditions on the calculation schema then your functions for cash
discount at time of payment VAT adjustment will not work correctly. See further cash discount configuration
instructions in Appendix 1 of this guide.

7. SAVE your work.

You might have to renumber some of the existing steps to make room for these three new
conditions.

The CalType numbers shown here are 992, 993, and 994 however these are created as part of your
installation and could be different numbers.

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Assigning the New Calculation Schema to Purchase Transactions

In this new Integration design, we have elected to use calculation schema as a way to activate the pricing
conditions for Purchasing and also allow calculations to be done at the document level. Prior Integration
processes did not allow for document level pricing and therefore met with tax compliance challenges especially in
the US Sales tax model with various states that use maximum tax calculations. These required calculations
consider multiple line-items in the overall tax limits of the calculation in order to best take advantage of the
maximum tax limit. Use of the calculation schema is a way that we can provide document level pricing in order to
now meet these taxing processes.

If you currently use the calculation schema you may be familiar with the ability to assign the schema to a schema
group. Schema groups allow you to group together purchasing organizations that use the same calculation
schema. The system will normally already handle this function with the automatic assignment of the schema to a
“blank” schema group and then allow this to be used by all purchasing organizations. If however you have made
your own schema group assignments, then you will want to review this next configuration step to verify that your
new schema is correctly assigned and working as desired with all purchasing organizations.

1. To review this setup, navigate to Materials Management > Purchasing > Conditions > Define Price
Determination Process > Define Schema Group and click on Execute.

2. Select the second option Schema Groups for Purchasing Organizations. There should be a blank
schema group in the list that is listed as a standard group.

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3. In the next step the assignment of this standard group should be assigned to all your purchasing
organizations within your set up.

4. If the configuration for schema groups is different than shown above, you may need to make additional
adjustments to confirm that the new schema group is working with all created purchasing organizations.
Otherwise, this standard default configuration will prevail.

SAP MASTER DATA SETUP

Assign Tax Indicator in the Material Master Sales Organization View

Transaction Code: MM01/MM02

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1. Enter the Material number.

2. Select Sales: Sales org Data 1 and ENTER.

3. Enter the Sales Organization and Distribution Channel.

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4. Review the tax data section of the screen and make sure that the tax classification code of 1 for IDT Tax
Liable has been entered for all countries that the material has been extended. Save your work and repeat
this for all the sales areas extended to this material. You will likely want to do this via an automated program
in order to mass update all your records.

Maintain Default Values for Tax Codes

Transaction Code: OMR2 for Invoice Verification

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Initially we recommended that you not use default tax codes set up using this transaction however due to some
changes to various logic and additions to our system we now feel it is a preferred solution to utilize default
configuration. Current logic will identify the correct buyer or seller role for the transaction in Determination based
on the input or output tax identifier on the tax code that is used on the transaction.

For example, if you incorrectly use the I1 driver tax code on an FB70 Customer Invoice transaction, the role will
be incorrectly determined as a buyer role rather than a seller role and your G/L account and account key will be
incorrectly assigned to an input tax account rather than the correct output tax account. We have made some
corrections now to prevent this and recommend you have set up a default tax code for each country code. This
will allow the logic in this integration to work properly for the various driver tax code logics and also for the codes
that will be assigned through the Determination Tax Code Qualifier.

For FB70, FB75, FB60, FB65 default settings please see section on Tax Code Selection for
Transactions and configure the defaults with transaction code OBZT.

Maintain Commodity Code

Transaction Code: MM02. Access the Foreign trade import page:

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If a Commodity Code is maintained on the Foreign trade import page, the Integration provides this code to the
Determination for a tax decision. This code can be set when setting up a material.

Maintain Commodity Code in HANA Systems

You would not be able to create, update, change commodity code through MM01, MM02 as the commodity code
field is not available in Intl. trade tab now.

Technical Change from SAP for Commodity Code in HANA

The fields STAWN and EXPME in table MARC are no longer used to store the commodity code information.

The data will be stored in tables: /SAPSLL/MARITC, /SAPSLL/CLSNR and /SAPSLL/CLSNRT.

The information will still be visible in MARC Table, as it will be provided via proxy objects.

The standard Field Mapper for Commodity Code still works as the data is stored in MARC table as before.

SAP Fiori Apps for Commodity Code

The following Apps are available within Fiori Launchpad to create, change and manage Commodity Code.

1. Classify Products – Commodity Codes

2. Reclassify Products – Commodity Codes

3. Manage Commodity Codes

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Relevant SAP Notes

2376556 – S/HANA – Material Classification with commodity codes in SAP S/4HANA 1610

2332472 – Pre-Transition Checks for software component SD-FT-PRO (Foreign Trade Basic Functions)

2378796 – Material classification: Change in data model in SAP S/4HANA 1610

2356375 – Commodity Code support in Read FM

Assign Tax Indicator in the Customer Master

1. Transaction Code: XD02. Enter the customer number, company code, sales organization, distribution
channel, and division. ENTER.

For HANA environments: Transaction XD02 has been replaced by the Business Partner
function using the new transaction code “BP”. You will need to familiarize yourself with the new
process and make this change in the Customer Role that you set up for this business partner’s
information.

2. Access Sales Area Data from the menu then from the next screen click on the Billing document tab.

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3. Assign a tax indicator for each Customer in SAP resulting in a call to Integration. This indicator is later
copied during sales order processing into the sales documents to derive the taxability of the customer.

Maintain Condition Type ZITD to Determine Tax Code

On the sales side, SAP uses the condition technique to determine the tax code assigned to a sales document and
to set the transaction as tax-relevant. The determination is done for the condition type defined to call Integration
and is based on the Customer Tax Indicator and the Material Tax Indicator defined earlier.

1. Transaction Code: VK11. (VK12 if you need to do this in change mode)

2. Enter a tax condition created previously (in this example, ZITD).

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3. On the next screen enter the Country code and hit the EXECUTE button.

4. On the next page, create an entry for each relevant combination that includes Customer Tax Indicator
and Material Tax Indicator for Rate 0 and Tax Code O1 as well as the other lines as shown in this
example below.

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Maintaining Zone Aliases

You may need region codes for countries that tax at levels below country level. ONESOURCE Indirect Tax has
enhanced its international tax data to include additional codes (2-digit, 3-digit, ISO) where appropriate.

In many cases, our codes do not match the codes maintained in SAP. For example, Indian state codes are
numeric in SAP (for example, 22 = Tamil Nadu) whereas in ONESOURCE Indirect Tax the same one has a code
of TN. Therefore, when SAP sends state code 22 to Integration for address determination, it does not match the
zone maintained in Determination.

ONESOURCE Indirect Tax enables you to map codes maintained by the ERP system to those maintained in the
Determination using the Zone Alias feature.

Zones for Mismatched Determination and SAP Codes

Identify zones for which Determination codes do not match SAP codes. The region codes for India, Argentina,
and several other countries do not match the state/province codes in Determination.

Identify Region Codes in SAP

1. To display region codes for countries in SAP, navigate to:

Transaction: SPRO navigate to SAP NetWeaver > General Settings >Insert Regions.

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The images show a portion of the region codes for the countries India and Argentina.

2. Locate the region codes you need to map to Determination and write them down.

In this example, India Region Codes are shown on the left and Argentina Region Codes on the right.

Set Address Validation Configuration Parameters

1. Log into the Determination and navigate to System > CONFIGURATION.

2. Change companies to the parent company in your Determination hierarchy. Select the company from the
drop-down list in the upper right-hand corner of the page. In the example below, the example parent
company is SAP Headquarters.

3. Set the parameters AV_INTL_TAXPROVIDER and AV_US_TAXPROVIDER parameters to the selected

company and click Submit.

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Create Zone Aliases

1. Navigate to Tax Data > Zones.

2. Search for and select a country to create an alias (for example, Argentina).

3. Once the desired country is selected, click the Alias tab.

4. Enter the desired aliases and click SUBMIT. For example, you might create the following aliases in
Argentina:

Alias represents the code maintained in SAP. Value represents the name maintained in the Determination Zone
Tree. In the example above, the selected Zone is Argentina. Always configure aliases at the Country level and
apply each alias at the Province level.

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OTHER FEATURES

Setting a Default Tax Code for Purchasing Transactions

If you want to have a driver tax code set up to automatically populate on a purchase order line-item invoice tab
you have several options. We have provided here a solution which includes the condition type ZITD that is used
for the tax call to Determination. You can set up a specific condition table using this method and create an access
sequence that will allow you to set the tax code by company code in your system. This will bring the default tax
code into the purchase order line-item on the invoice tab using the I1 driver tax code.

1. Use transaction code M/03 creating a new condition table 996 with company code as the field (the number
of the condition table may need to be different in your system if 996 is already used.) See sample screen
shot below. The new condition table will then be used to create an access sequence.

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In this example the company code is selected from the field catalog and added as the selected field for the
table

2. Use transaction code M/07 and create a new ZIDT access sequence with table 996 (or the number of the
condition table that you just created in the prior step.)

3. Use transaction M/06 to modify ZITD condition type to use the new ZIDT access sequence.

4. Use transaction code MEK1 to create new MEK1 entry so that for company code 1000 the default will be I1
on the PO line-item. (Need to enter for all active company codes that use ZITD condition type.)

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5. As an example we have created PO 4500001602 and it now defaults the I1 code on the invoice tab once
company code 1000 is entered on the header status tab.

PO was able to receive and process MIRO correctly through to payment so long as OMR2 did not have a default
set to I1 on the LIV configuration. IF OMR2 is set with a default of I1 in LIV then you get an error that I1 as a tax
code exists at the header but is not in any of the other line data. You cannot set OMR2 defaults for this to work.

If you set this up and try to enter the PO line-item detail before entering the company code on the
header you will get a dump on the PO create. This is because the PO is requiring the company code
at the header level first due to this configuration. You can get around this by setting a parameter
default for the company code in your user data screen.

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SYSTEM / USER PROFILE / OWN DATA /

Click on PARAMETERS tab and input parameter BUK with a parameter value.

Tax Code Selection for Transactions

Users can limit the number of tax codes that are available in the drop-down list at the header level and line-item
level within FI transactions and LIV invoice entry. They can also identify an initial tax code allowing for one to auto
populate as a default. To do this go to the transaction code noted below:

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Transaction code: OBZT

After initial transaction code enter the country code to get to this screen. There will then be an option to add new
lines to this table and select based on the transaction drop down list below:

Selecting Invoice Verification will allow you to set the list of available tax codes to enter for the MIRO transaction.

Selecting Financial Accounting Invoice Receipt will allow you to set the list of available tax codes for FI
transaction like FB60, FB65 for input taxes.

Selecting Financial Accounting Outgoing Invoice will allow you to set the list of available tax codes for FB70,
FB75 output taxes.

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Once selecting the transaction then create lines for each transaction code that you want to see in the drop-down
list for the related transaction. They will then appear as a shortened list of available transaction codes in the
transaction header data screen as shown in this example below:

Instead of the whole list of tax codes that have been set up for the company code, you will now only get the list of
tax codes that you selected for this given function. This feature limits errors in data entry by preventing incorrect
output tax codes from being selected on and input tax transaction and vice versa.

By placing a check mark on the initial column of the table you identify the tax code that you want the system to
use as the initial code that would be populated for the transaction. A user can then either select this code or
override it by selecting another from the drop-down list.

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