Enterprise Resource Planning Blogs by SAP
Get insights and updates about cloud ERP and RISE with SAP, SAP S/4HANA and SAP S/4HANA Cloud, and more enterprise management capabilities with SAP blog posts.
cancel
Showing results for 
Search instead for 
Did you mean: 
former_member467500
Participant
566
This blog represents part 2 of the 6-part series ‘Create Tax Content for Non-Localized Countries/Regions in SAP Cloud Applications Studio’.

 

Steps of Configuration


We will understand the various steps of configuration in the following blogs :

Overview

Part 1 :

Configure Tax Types
Configure Tax Calculation Procedure (Optional)

Part 2 (the blog that you are reading now) :

Configure Tax Event
Configure Accounting Attributes for Tax Events (Optional)

Part 3 :

Configure Tax Codes

Part 4 :

Configure Tax Rate Schedules
Configure Tax Decision Tree

Part 5 :

Configure Account Determination Product Tax Event Group
Configure Product Tax Event Type Account Determination Product Tax Event Type Group

Part 6 :

SAP Delivered Standard Tax Calculation Procedures

 

To recap from the preceding blog, we learnt how to configure tax types and a tax calculation procedure.

In this blog, we will understand how to configure tax events and accounting attributes of tax events.

 

Configure Tax Events


Tax Event is a central element in tax calculation that represents the particular tax scenario. Tax event is the first level of determination in the tax process, for example, domestic sales in Serbia.

 

Tax events classify business situations or business processes from the point of view of the applicable tax law. As each country/region defines different business situations or business processes as taxable in a certain way, a different set of tax events for product tax is needed to implement local tax requirements in each country/region.

 

You can create tax events in the studio by following the steps below:

 

  1. Follow steps 1 and 2 as outlined in section ‘Configure Tax Types’ mentioned above and continue with the below steps.

  2. Under Business Configuration Object -> Name, select Tax Event Type.


 




  1. Click Next to continue.

  2. Select the Tax Event node and enter the values as below:



  • Country: Specify the country/region for which you need to configure the tax event.


Note:  The country/region you want to configure must be available in the tax country table already delivered by SAP. For the list of delivered tax countries, see Tax Basic Countries.

Note: You can only create tax content for the countries included in this list. If a country/region is not listed here, please contact SAP Business ByDesign Globalization team through  Customer Influence and mark the area as ‘Globalization’ in the idea.

  • Tax Category: Specify the category of tax, in this case Product Tax.

  • Tax Event: Specify a new tax event code according to your requirements.

  • Valid From: Specify the date on which the validity of the tax event starts. If you do not know the exact date on which the tax event became valid, it is sufficient to specify a date that is earlier than the tax date of the business transactions that will be processed in your system.

  • Valid To: Specify the date on which the validity of the tax event ends. In case the tax event does not have a defined end of validity, enter 31.12.9999.

  • Non-Taxable Event: If the event is valid for non-taxable scenarios, select this checkbox.

  • Tax Event Direction: Select Incoming or Outgoing depending on whether the tax event applies to incoming scenarios, such as like supplier invoice/purchase order scenarios or outgoing scenarios, such as customer invoice/sales order scenarios.

  • Description: Enter a description explaining the tax event.



 

  1. Select the Tax Type Determination node and enter the values as below:



  • Enter the Country, Tax Category, and Tax Event as above

  • Tax Type: Specify a tax type. If there are any tax types created as part of an activated PDI BC set, you can also view those tax types here.

  • Due Category: Specify if the tax amount is payable or receivable. This entry must be in sync with the direction indicator of the tax event: for outgoing, choose payable; for incoming, choose receivable.

  • Statistical Indicator: This field is no longer used.

  • Sequence Number(Optional): Specify the sequence number in which the tax types will be evaluated. In case this has been left blank, then the default sequence would be used. If maintained, the tax types are evaluated in the sequence defined. If only one tax type per tax event is available, you can leave this field empty. For example, if you use an SAP delivered standard tax calculation procedure, then you can leave this field empty.

  • Tax Exemption Reason: Select the reason for which the exemption is applied. This is an optional field. New exemptions can be created as outlined in the section ‘Configure Tax Types’ mentioned above. In the Tax Exemption Reason drop-down list, you can see the exemptions which are defined as relevant for Tax Event.



 

  1. Open the Tax Calculation Procedure Determination node and enter the values as below:



  • Enter the Country, Tax Category, and Tax Event as above.

  • Valid From: Specify the date on which the validity of the assignment of the tax procedure to the tax event starts.

  • Tax Calculation Procedure: Specify if the taxes are to be calculated as Non-taxable, Input VAT, Output VAT, Reverse Charge VAT, or Import VAT.


For more information on the standard tax calculation procedures for the different methods of calculation, see Appendix I.

Note: SAP supports both net and gross calculation for all SAP delivered standard tax procedures available in the drop-down list. 

 


 

 

7. To deploy the new BC set, follow steps as outlined in the section ‘Configure Tax Types’ mentioned above.

 

Configure Accounting Attributes for Tax Events (Optional)


 

Follow the steps detailed in this section to configure reverse charge tax events or direct VAT (or Import VAT) tax events. For more information on the standard tax calculation procedures for the different methods of calculation, see section Appendix 1 below.

If a tax event was configured for reverse charge or direct VAT, it is required to create the BC set described below.

You can create entries for mapping the tax event/ tax type with accounting tax type in the SAP Cloud Applications Studio by following the steps below:

 

  1. In the Solution Explorer, right-click the Business Configuration node and select Create Business Configuration Set. This opens the Business Configuration Set Wizard.

  2. Under Business Configuration Object Type, select Use SAP Business Configuration Object.

  3. Enter a name and a description.

  4. Under Business Configuration Object -> Name, select AttributesforTaxEventTaxType from the list.

  5. Click Next to continue. The Define the Values of Your Business Configuration Set (2/3) window opens.



      6. Open the AttributesforTaxEventTaxType node and enter the values as below:

  • CountryCode: Specify the country/region code for which you need to map the accounting tax type

  • TaxTypeCode/Content: Enter the tax type for the tax event you created following the steps outlined in the section ‘Configure Tax Types’ mentioned above.

  • TaxCategoryCode: Specify the category of tax, in this case Product Tax.

  • TaxEvent: Specify the tax event you created, following the steps outlined in section ‘Configure Tax Events’ mentioned above.

  • AccountingTaxType: The accounting tax type is the corresponding tax type on financial side, mapped to the tax type used for tax calculation.


 

Note :

You must ensure that your entries are in sync with the tax procedure entries configured in section ‘Configure Tax Events’ mentioned above:

 

  • For the tax events which were marked as non-taxable and have the non-taxable procedure assigned, it is not required to create entries in this BC set.

  • For the tax events which have input or output VAT procedure assigned, the value 1- VAT (value added tax) from the value help should be assigned in this BC set.

  • For the tax events which have reverse charge procedure assigned, the value 5 - Self-assessed VAT from the value help should be assigned in this BC set.

  • For the tax events which have direct VAT procedure assigned, the value 6 - Direct VAT from the value help should be assigned in this BC set.


Note: The other values in the value help are not available to be used in a PDI solution.



 

7. Verify the values in the Review your Business Configuration Set view. If you want to make any changes or corrections, click Back to proceed. If all the values are correct and you want to save the content, click Finish.

8. Right-click the BC set that you created in the Solution Explorer view and select Activate to activate it.

9. Right-click the Business Configuration node and click Deploy Business Configuration. The content is deployed to the SAP Business ByDesign system.

 

What's next ?


We will have a detailed look and understand the steps of configuration of Tax Codes in part 3 of this blog series as mentioned above.