Tax code could not be determined

[Former Member]

Dear Expert,

Encountered Error message "Tax code could not be determined". In the SPRO >Tax calculation >

Determine Tax Code for Country/Product Category we did defined the combination of

1. set up a product category and enter a country.

2. leave the "Category ID" field empty and specify a "Country"

During the shopping cart creation system managed to determine the tax

code= V0. However when we Assign Vendor for the shopping cart and as long as the vendor's country different than local country then we will encounter error as "Tax code could not be determined".

Even in the SPRO >Tax calculation >

Determine Tax Code for Country/Product Category we did define an international indicator for the abroad vendor

vendor.

SPRO >Tax calculation >

Determine Tax Code for Country/Product Category

Tax Indicator

Domestic US

Please advise.

[Former Member · Accepted solution]

Hi,

This error is coming because system could not identify the system in which tax to be calculated.

In SPRO > IMG > SRM > SRM Server > Cross Application Basic Settings > Tax Calculation > Determine System for Tax calculation

In that choose No Tax calculation radio button or Tax Calculation occurs in backend based on your requirement.

This will definitely resolve your issue. Clarifications are welcome.

Award points for helpful answers.

Rgds,

Teja

[Former Member · Accepted solution]

Dear Teja,

I can't choose No Tax calculation radio button. Because we have roll out - EBP to 1 subsidiary in different country. Mean for headoffice the default tax code = VB and for subsidiary the default tax code = V0

Thus in SPRO > IMG > SRM > SRM Server > Cross Application Basic Settings > Tax Calculation > Defining system for Tax calculation setted as "R/3 Tax Calculation occurs in Backend." and Our default tax code = "VB"

However in SPRO > IMG > SRM > SRM Server > Cross Application Basic Settings > Tax Calculation > Tax code Determination for country, we have set domestic indicator & country = US and international indicator where country = JP, SG, DE, etc.

For our issue is as long as the abroad vendor selected where the vendor country is different as company country error "Tax code cannot be determine" will prompt.

Pls advise

[Former Member · Accepted solution]

Hi,

Since you said the tax calculation happens in back end R/3, the only issue now remains is the tax code V0 / VB could not be determined.

Please look into the following settings which may help you in resolving the issue :

SPRO > IMG > SRM > SRM Server > Cross Application Basic Settings > Tax Calculation > Enter Tax code

In that check whether bot the tax codes V0 / VB are maintained or not. Choose the one which you want to default by clicking the radio button based on the requirement.

Also in SPRo settings for Tax calculation

SPRO > IMG > SRM > SRM Server > Tax Calculation > Assign EBP tax code to FI system

In that assign the tax code defined in the previous setting to the back end R/3 tax code.Here FI system is your back end R/3 system.

Hope these settings will help in resolving your issue.

Clarifications are welcome.

Award points for helpful answers.

Rgds,

Teja

[Former Member · Accepted solution]

Hi Teja,

Thanks for your reply.

Yes, we had ticked the "No tax" for tax code "V0" and tax code "VB" set as Default in SPRO > IMG > SRM > SRM Server > Cross Application Basic Settings > Tax Calculation > Enter Tax code already.

We do not set any for SPRO > IMG > SRM > SRM Server > Tax Calculation > Assign EBP tax code to FI system. This is because we do not use for FI system

With current setting, when US'user create a shooping cart, system managed to determine the tax code = VB for domestic country US where the company country = US too. Whereas for subsidiary user, they manage to create shopping cart and system manage to determine the tax code = V0 base on the country = SG

However once they select vendor out of local vendor then message encountered. Even i have set few international indicators in SPRO > IMG > SRM > SRM Server > Tax Calculation >Determine tax code for country. System seem do not know how to determine the tax code.

Pls advise

[Former Member · Accepted solution]

Hi,

What do you mean by "once they select vendor out of local vendor then message encountered " ??

You mean to say whenever you are choosing back end vendor, system is not giving problem and when ever you choose local vendor, system is giving this error message ??

Even though you choose local vendor that vendor should be linked to backend vendor using Manage Business Partners link under Vendor Data tab since Vendor Accounting system is back end R/3.

So it should not give such an error even though your vendor is local vendor.

In such a case please check your settings for that vendor once again under vendor data tab. Also default V0 as the default tax code and check no tax check box.

Hope this makes you more clear and helps in resolving your issue.Clarifications are welcome.

Award points for helpful answers.

Rgds,

Teja

[Former Member · Accepted solution]

Hi Teja,

I'm a new user for EBP system and really appreciate your guidance here. Appreciate you can sharing with me some EBP or SRM customizing documents. My e-mail account: jenny_8225@yahoo.com

for my case,

1. shopping cart for US company by default system will determined the tax code = VB. And if later in vendor assignment i selected local vendor - it's ok. However, when i selected foreign vendor...then will encounter error message saying tax code cannot be determined

2. Shopping cart for SG subsidiary company by default system will determined the tax code = V0. And if later in vendor assignment i selected local vendor - it's ok. However, when i selected foreign vendor...then will encounter error message saying tax code cannot be determined

May i know where to found vendor data tab? wht tcode?

Are you saying to set default V0 as the default tax code and check no tax check box in in SPRO > IMG > SRM > SRM Server > Cross Application Basic Settings > Tax Calculation > Enter Tax code or vendor master??

In SPRO > IMG > SRM > SRM Server > Cross Application Basic Settings > Tax Calculation > Enter Tax code, we had ticked the "No tax" for tax code "V0" and tax code "VB" set as Default already.

Pls help

[Former Member · Accepted solution]

Hi Jenny,

So the issue is whenever you are selecting a foreign vendor (Non US Vendor) the system is giving an error.

And your local vendor is nothing but US vendor.

Which country your foreign vendor belongs to ??

Is the vendor created in backend R/3 and replicated to SRM using BBPGETVD transaction or

Did you create that foreign vendor locally in SRM system ??

How you are assigning the vendor in shopping cart ??

Are you referring any contract, vendor lists for assigning the vendor in Shopping cart ??

If a vendor is created in SRM system, the vendor should be assigned to backend R/3 vendor using "Manage Business Partners" link in SRM portal or BBPMAININT transaction in GUI.In edit mode for that business partner (vendor) under the Vendor Data tab you can do this assignment.

Please explain your exact scenario to help you further in this issue.

Hope this makes you more clear in understanding and resolving the issue.

Award points for helpful answers.

Rgds,

Teja

[Former Member · Accepted solution]

Hi,

In the below section IMG node, please maintain all tax codes for Domestic and International. This is the reason for this problem.

SRM --> SRM Server --> Cross-Application Basic Settings --> Tax Calculation --> Determine Tax Code for country/Product Category.

Eg: Here V1 has Domestic as well as International

Domestic, GB, ......V1

International, GB, ......V1

Regards

Kathirvel

[Former Member · Accepted solution]

Dear Kathirvel,

Thank you for the help.

It is work well now for the domestic vendor and foreign vendor.

If you have any SRM or EBP customizing program or trainning guide for share. Kindly send its to my email: jenny_8225@yahoo.com

Regards

[Former Member · Accepted solution]

Hi,

Thanks for awarding the points. I faced the same problem once and found this clue while debugging the application.

The guides I have are already in SDN Wiki

https://wiki.sdn.sap.com/wiki/display/SRM/Configuration+Guides

Regards

Kathirvel