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Former Member
Oct 22, 2007 at 04:30 PM

Wrong tax jurisdiction code on asset purchase invoice

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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.