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Former Member
Nov 18, 2014 at 03:02 PM

Tax jurisdiction issue for US/CNANADA sale


Hi Team,

I am having one issue with US-CANADA sale transaction and determination of Tax jurisdiction code.

Let me explain it in details. Until Last month one plant 1100 belongs to company code AB00 was belongs to country CANADA- CA and tax procedure TAXUSX, last month MM consultant changed the company code AB00 & Plant 1100 address to US from CA for ironing one of his procurement process.

We are using External tax system SABRIX for determination & calculation of Tax in sales invoices.

In OBCO we have Tax jurisdiction structure maintained for US with 14 character length whereas for CANANA we have 4 character structures.

Before change from MM for country for company code AB00 & Plant 1100, we use to have sale from plant 1100 to Canada customers ( Domestic sale for CANADA) and system used to calculate tax correctly and determine correct Tax Jurisdiction code maintained in customer masters.

Now after changes when we are doing sale form same plant 1100 & company code AB00 (Both belongs to US) to CANADA customer(Export Sale) , system is not determining correct Tax jurisdiction code from customer master however it is picking Tax jurisdiction code as default maintained for Co. Code- OBCL in accounting document released to FI form SD.

Our concern is now all SABRIX report showing only default Tax jurisdiction code for accounting document –tax line item for CANADA customer. We need to pay the tax as per District/Region (Tax Jurisdiction code).

I need your assistance to determine where and what I need to change to bring the customer master tax jurisdiction code in accounting documents tax line items.

Please Let me know any further information required.