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Jun 19, 2020 at 07:20 AM

Tax departure & destination countries issue in customer invoice of Intercompany billing scenario.

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Hi Experts,

I'm facing some different issue in intercompany billing scenario related to tax departure and destination countries while creating invoice to customer. The scenario as follows, a domestic customer within Japan (JP) placed an order to Japan company S.Org.(JP01) but ship-to located in South Korea (SK). The company is delivering the order from Taiwan (Intercompany Plant) TW11 to country SK. Intercompany invoice raised from TW to JP successfully with ZERO Tax. In customer invoice, company is looking for tax should be applied as DOMESTIC Tax of 10% as departure country JP (JP01) to destination country JP(Sold-to), but SAP system is showing departure country as TW (Intercompany plant location) and destination country as SK (Ship-to) in invoice and getting export tax condition records between TW and SK showing as ZERO tax and tax procedure of Taiwan (TAXTW). While releasing the invoice using VFX3, showing an error of Tax Code T1 is not available in Tax procedure (TAXJP). I appreciate your valuable responses to resolve this critical issue.

Note:- I can understand that as per SAP standard in Invoice Departure Country will come from Supplying Plant and Destination Country will come from Ship-to.

Best Regards,

Chanakya