Tax code via price determination cannot be determined – Intercompany Settlement (CCS)

[Diego26]

I am working on a configuration scenario in SAP S/4HANA Cloud Public Edition and I am facing an issue with tax code determination during pricing. When creating the document, the system stops with the following error:

“Tax code via price determination cannot be determined, check Customizing.”

These are the configurations in the system (Intercompany between Germany and the US):

Procedure Royalties IC In (Germany)

Procedure Royalties IC Out (Germany)

Procedure Royalties IC In (US)

The Condition Type RITT has a reference cond. type TTX1

Set Tax Rates - Purchasing

Material Tax Data

Business Partner Output Tax details:

Any insights into why the tax code is not being determined in Public Cloud, or which specific configuration might be missing, would be greatly appreciated.

Thank you in advance!

[Chris1973]

Hello @Diego26 

Thank you for your question.

Have a look at the following references.

https://help.sap.com/docs/SAP_S4HANA_CLOUD/34cef32f5486451aa0fe114aa26ea817/145f4770a9c94575a1d2da8f...

https://community.sap.com/t5/enterprise-resource-planning-q-a/the-difference-between-tax-categories-...

To summarise, based on the scenario you described and the details I derived from your attached screenshots, it seems you only maintained TTX1 for the US but did not do same for DE. This might explain why the system cannot derive the tax code and generates the WS533 error.

Here is what I suggest:

Use the Set Tax Rates-Purchasing app to make the correction.

Set Tax Rates and create the necessary entries. Even if your transaction is IC inbound in DE, the RITT uses TTX1 and not MWST. Ensure your material tax classification supports this tax type.

Then you need to maintain material tax classification for DE using the Manage Product Master Data App.

Choose your material or product, go to Sales Tab, then Tax. Ensure you maintain DE --> TTX1, Tax Classification should be 1. If DE is missing, first extend the product to the DE sales org. (In you screenshots you only showed US classifications but no DE classification).

Your pricing procedure screenshots seem correct, so you do not need to carry out any modification there. The issue is rather tax rate availability in DE.

These steps should now allow your pricing to find TTX1 for DE, system will also determine the correct tax code and the document should save without the error.

You may also find this Blog interesting: SAP S/4HANA Cloud: Determine Tax Code in Purchase Documents using Condition Technique

Let me know if you have further questions.

Best regards

Chris

[Diego26]

Chris, thank you for your reply, i will check on this and i will let you know if it works