Tax Jurisdiction Error in SRM

Hello,

We are currently building our SRM 4.0 client in Extended Classic. We have set the tax calculation in the IMG to be 'Tax calculation occurs in R/3' and have set the tax code I1 as default. It should be noted that we are using internal tax calculation procedures in R/3 directly and not hooked up to a third party like Taxware or Vertex.

When creating a SRM shopping cart, we get an error message generated from the R/3 System, 'Tax code I1 does not exist for jurisidiction code' (message number FF718). When creating a purchase order directly in the R/3 system with the same information, the tax calculates correctly.

I have referenced OSS note 436760 regarding implementing BAdI BBP_TAX_MAP_BADI. However, I believe the tax calculation should be standard functionality in SRM.

Can someone confirm if they had to implement this BAdI to address this issue or if there is another problem that is preventing the tax code from being populated?

-regards

Shaz