Tax error while posting an invoice in SRM

[Former Member]

We are using SRM 5.5 SP4, ECS and ECC 6.0. We are using vertex for tax caluculation and we configured the tax calculation to always occur in ECC.

One more important point is, client has decided to use invoicing in SRM. Now the problem is we ran in to so many tax related issues and we opened OSS messages for this but SAP did not help. Let me explain the problem in detail.

1) We used to get "Tax jurisdiction code could not be determined" error while creating shopping cart, but we implemented note 436760 and hardcoded a value and got rid of that error.

2) When we create a SC, the copy of PO is created in ECC and vertex is called for tax calculation and tax is calculated properly based on the tax hierarchy except when you use the Shipping Address (external), so when I used the delivery address other than plant, it should calculate based on that address but it was not doing that, its calculating based on the cost object's jurisdiction code. For this problem, we have implemented ME_ADDRESS BADI in ECC, but with this BADI, it is always taking delivery address's jurisdiction code, which is also wrong.

The tax jurisdiction determination should be from 1) Delivery address if its different from plant, else it should look in to the cost object, else storage location then plant.

So we implemented the above logic in that BADI and there is no problem with PO taxes.

3) When we create an invoice with reference to PO, the invoice verification program is always determining the tax jurisdiction code from plant even though the taxes on PO are calculated based on cost object, hence the IDOC is erroring out by saying there is a difference in tax.

So we implemented the user exit and used the same logic of tax determination and its fixed now.

4) Finally, we are trying to create invoices without PO's in SRM, here no tax calculation is happending in SRM, but when we try to post the invoice in to ECC, we are getting the following error

"SAX processing failed on input stream#SAX processing failed when attempting to add child element to parent. (parent element=com.vertexinc.tps.common.domain.LineItem, child element=com.vertexinc.tps.x.."

So I am not sure how to fix this, we are at the dead end now out of ideas, so trying to get some help from experts like you about looking at this problem in a different angle. Now there are a couple of questions I can ask you

1) Did we do something wrong by selecting R/3 as the tax calculation system, if not is it difficult to fix this error and move forward?

2) What if we need to change the design and start calculating the taxes in SRM by connecting SRM to Vertex, will there be any new challenges? and do you have any config doc for this? Also we are implementing this rollout for US, Canada and Mexico companies.

I would really appreciate if you can reply me with your valuable input. You can also email me if @ sdogiparthy@gmail.com

Thanks a lot,

Sreedhar

[Former Member · Accepted solution]

Hi

<b>It's recommended to have the same Tax related configuration data replicated in SRM system from R/3 as well.

I don't recommeded you to go with Hard-coding of tax codes.

We have faced similar issues with Delivery address and we have to solve it using our custom logic inside the BBP_DOC_CHANGE_BADI and BBP_CREATE_PO_BACK BADIs.</b>

Anyways, send the detailed business requirements to my mail which are already having with you. )

I will definitely help you out.

<u>Please refer to following threads as well.</u>

<b>

Hope this will help.

Please reward suitable points, incase it suits your requirements.

Regards

- Atul