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Business Place & Section code


what is the difference between business place and section code with an example.

thanks in advance


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4 Answers

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    Former Member
    May 17, 2011 at 06:27 AM


    Please find the related answers in the below path.

    thanks & regards,

    shashi kanth.

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    Former Member
    May 17, 2011 at 06:50 AM


    In ECC 6.0 the objective of the business place is changed, As per the SAP Note 607714 - the below are the details.

    A Business Place represents a reporting entity of a company for a

    region/state. The Business Place should hold the VAT Registration number

    for a region/state of a company.

    Plants should be assigned to the Business Place(s) based on the

    region/state they are situated in.

    Refer to the notes 607270 and 607271 for an overview of the functionality

    and configuration settings for Business Place.

    Refer to the note 607560 for the Maintenance view of Business Place in



    As per the Note 607270 - The Business Place objectives is as follows.

    Business Place:

    A new Organizational entity - Business Place (BUPLA) has been brought in use in Logistics. Business Place represents a Tax Reporting entity for an Organization in a State or a Region. Business Place in R/3 will be defined at the Company Code level and will be assigned to Plant(s). One Business Place can be assigned to more than one Plant in a Region, but one Plant cannot be assigned to more than one Business Place. Business Place is currently used by SAP customers in many countries for VAT related Tax Reportings.

    Entity Business Place will primarily be used in SD for -

    Defining Vat Registration Number

    Determining Official Number Range for all Billing Transactions

    Consolidating data for Period End Processing requirements

    Determining "Alternate G/L Accounts" for Taxes

    Some of the possible Business scenarios for Business Place usage are -

    Scenario 1: An Organization has multiple Plants in a State & single VAT Registration Number is allocated for all Plants .The State VAT Law may require consolidation of input credits for all Plants before utilization and permits single Period-End Reporting.

    Solution: Define single Business place for all the Plants in a State.

    Scenario 2: An Organization has two Plants in a Sate. However, outputs of one Plant are coming under deferral / exemption scheme. State law may require separate Registration Number for this plant.

    Solution: Define separate Business Place for both the plants.

    Scenario 3: State specific number range requirements may be specified

    Solution: Business Place is used to determine number range objects.

    Scenario 4: Organization feels the need for maintaining separate VAT Credit and Debit accounts for different States.

    Solution: Separate G/L accounts are maintained at State level. Business place is used for determining right G/L accounts at the time of posting.

    Note:For SAP R/3 4/0B, the field "Branch Office" will be available for assignment to Plant. The customizing for Branch office is similar to Business Place. However, this field comes with restricted transaction related functionalities.

    • Till now entity Business Place was in used in TDS relevant transactions in EWT. But now with VAT implementation, Business Place will be used in Logistics.

    A new field "Section Code" (for 4.6B onwards) has been provided in place of Business Place in FI ( Refer OSS Note 603325).*


    Section Code as per the Note - 603325

    With effect from 1 April 2003, Business Place will no longer be a required entry for TDS relevant transactions. The users will now have to enter the Section Codes instead of Business Place, which was being entered earlier. All transactions and reports will now be based on section codes. You will have to run a migration program for moving from Business Place in EWT to Section code, effective 1st April 2003. This migration program exactly copies all the existing Business Place related customizing, to section code. It also ensures that TDS relevant transactions posted on or after 1st April 2003, with Business Place entered instead of Section Code, are not processed further.


    Please refer the below note for VAT Implementation.

    Note 818732 - Master Note for VAT

    Thanks & Regards,

    Shashi Kanth.

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  • May 17, 2011 at 07:25 AM


    At this moment, In simple languge

    Business place means VAT tax office location.(example : Bangalore VAT tax office location ) TIN No

    Section code means Income tax office location (example : Hyderabad Income tax office location) TAN NO

    Business place only used for VAT purpose only

    Section code only used for EWT purpose only

    in old years Busines place is for EWT and after VAT , Business place used for VAT and Section code is created for EWT.

    I hope above information will clearify your issue and if you need any further help please revert back to me.


    Madhu M

    Please refer the below wiki pages relates cin-fi



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    Former Member
    Jun 07, 2011 at 10:29 AM


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