Wrong tax jurisdiction code on asset purchase invoice

[Former Member]

We have an invoice on an asset purchase created with the wrong tax jurisdiction code with standard SAP tax configurations. Does any one know why this happened.

My understanding for asset purchases is that the system first looks for the tax jurisdiction code in the asset master record. If it is not in the asset master record, the system takes the tax jurisdiction code from the cost center entered in the asset master record. If neither the asset master record nor the cost center contain a tax jurisdiction code, the system takes the tax jurisdiction code from the company code to which the asset belongs.

In our case, there was no tax jurisdiction code in the asset master, but the cost center has a Texas tax jurisdiction code. Furthermore, the PO also has the same Texas tax jurisdiction code. However, for some reason, the invoice was created with a California tax jurisdiction code.

[Former Member]

The solution to this issue is to create statistical cost elements for the asset accounts. Transaction code OAK7 (program RACKAR00) can be used for this purpose.

[Former Member]

I don't think it is a right solution.

Assignment of Cost center to Asset is time dependent. We can maintain several intervals for a time dependent field. Please check the the cost center assigned to the asset on creating the PO and Invoice.

I think the cost center assignment is changed after creating the invoice.

Thanks

Palani

[Former Member]

Hello Palani.

We have already verified all of our master data. The tax jurisdiction code on the cost center assigned to the asset was not used until we created statistical cost elements for the asset accounts. The solution is further described in OSS note 684659.

[Former Member]

A good start would be to reverse the MIRO or the invoice transaction and try reposting it and then see what happens at that stage.

Thanks,

Nandita