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How to deactivate the Foreign Tax code in SAP?

Mar 27, 2017 at 09:20 AM

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Former Member

Hi Team,

Can anyone please tell me how to deactivate the foreign tax code in SAP for only 1 country?

The question is my client wants to deactivate the foreign tax code for only 1 country. Here Country "A" have the transactions with Country "B" then here Country "A" is using Country "B" tax codes only. But here these same tax codes are using for Country "B" as well.

Recently Country "A" got VAT de-registered with Country "B" so here my client wants to ensure that no transaction will be booked under this variant i.e. these Country "B" tax codes would not be available for bookings made in Country "A".

SAP Recommendation

Do not delete or change any taxes on sales/purchases codes and their definitions as long as items with these codes exist in the system. Otherwise, the SAP system displays the tax amounts with incorrect tax rates in the corresponding reports and determines incorrect amounts during a tax adjustment for Payment transactions.

As per SAP Recommendation we would not made any changes in tax rate but provided some temporary work around as stated below.

Temporary Work Around:-

FTXP Changes:-

  • 1.Prefix/ Change description as “ DO NOT USE” in the tax code
  • 2.Removed Reporting currency field in the tax code
  • 3.Removed GL Assignment also

Here Country "B" user is facing errors while making the postings by using the same tax codes in SAP.

So here my client wants to ensure that in Country "A" Books - these tax codes would be de-activated / would not be available / visible while booking the postings with Country "B". But same tax codes would be available for Country "B".

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Former Member

Hi Team,

We are looking forward your help to fix this issue at the earliest.

Thanks & Regards,

Lakshmi S

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Former Member

Hi Team,

I would request you all to help me once to fix this issue asap.

Thanks & Regards,

Lakshmi S

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1 Answer

Ranu Eugene Mar 27, 2017 at 01:34 PM
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Hi Lakshmi,

Please implement SAP Note 2074351.

Regards,

Eugene

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Former Member

Hello Eugene,

Thank you so much for your response.

We have to implement these 2 SAP notes - NOTE_2095960 & 2074351 in sequence and i have already tried the same as well. But even then the same tax code is not visible for Country "B" as well along with Country "A" with "B". Here my client wants to restrict the same for Country "A" only while booking the postings with Country "B" but not for Country "B" s own bookings.

Thanks & Regards,

Lakshmi S

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