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May 11, 2012 at 01:36 PM

FICA Document Conversion from Legacy to SAP FICA Tax Issue

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Hello Experts,

We want to convert large volume of legacy data/documents into SAP FICA documents. To handle this large volume we are planning to switch off our external tax engine (TAXUSX) during this document conversion and we will switch on internal tax engine using tax procedure TAXUSJ.

In short we will perform below activities -

  1. Before Conversion (load data) –
    1. Maximum address validation will be performed
    2. Conversion will populate correct jurisdiction code on the customer master data (Business Partner & Connection Object address) if correct ZIP code or ZIP+4 exist.

  1. During Conversion (load data to SAP) –
    1. SAP internal tax engine with tax procedure TAXUSJ will be enabled (means we need to define all these jurisdiction codes that conversion populated in 1-B & 1-C – SAP internal tax jurisdiction code list)
    2. Conversion loads master data (jurisdiction codes populated by step 1-B & 1-C).
    3. Conversion loads document data with valid tax jurisdiction code populated above and tax code O1.

  1. Post Conversion –
    1. Change tax procedure to TAXUSX (external tax engine call enabled)
    2. Report Exceptions

So my first question is - are we following correct approach? I think we should not populate jurisdiction code or tax code for the converted FICA documents.

I want to understand long term impact of populating or not populating tax code and jurisdiction code on the converted documents. Any information would be of great help. Thanks.

Kind Regards,

Nikhil.