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Former Member
Sep 10, 2010 at 02:35 PM

TAXUSJ with material master tax ind., State specific tax code determination

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Hello,

We need to determine tax code in PO using tax procedure TAXUSJ .There are different plants in different states of the US and face a problem of correct derivation of the tax code on purchase orders in SAP.

Apparently, a material can be liable to tax in 1 state, and not liable for tax in another state. Tax indicator is country specific and not state specific (or plant specific). Hence we can have only one tax-indicator in material master. We setup conditions in MEK1 transaction, but did not solve the purpose.

How is this set up in standard SAP? How to determine tax-code in TAXUSJ?

Thanks.