Asset US Taxes

[Former Member]

Hi ,

Can any one provide me us tax configuration steps or any document related to asset for US. My email is ajitbk@yahoo.com

Thanks in advance

[Former Member]

Hello Aj,

see the below configuration of US TAX ( Vertex)

External Tax Determination

1.1 Prerequisites

Before using this configuration guide, you need to install the following building blocks in the order shown:

Building Block Description

B32 Best Practices R/3 Installation

V32 Best Practices Technical Objects (Manual DDIC, Tables, User Exit, Routine) + Install Transport

J02 Organizational Structures

V03 Financial Accounting

V08 Basic Controlling

V05 Delta Materials Management

J04 Sales and Distribution

V04 Delta Sales and Distribution

1.2 Configuration

1.2.1 Defining Physical Destination

Use

This activity defines an RFC destination.

Procedure

1. Run the following activity:

Supply Chain Planning Central Functions SAP R/3 Menu Logistics RFC Destination for Settings  Core Interface Advanced Planner Interface Application

Transaction Code SM59

2. On the Display and Maintain RFC destinations screen, click TCP/IP connections.

3. Choose the Create button.

4. In the RFC Destination screen, enter the following:

RFC destination VERTEX_MAXTAX

Connection type T

Description 1 Connection to Vertex

5. On the Technical settings tab, enter the following:

Gateway host Vertex server’s name

Gateway service Your gateway service for Vertex server

6. Choose the Save button.

1.2.2 Define Logical System

Use

This activity defines the logical destination for external tax determination.

Procedure

1. Start the following activity:

IMG Menu Tax on Financial Accounting Global Settings Financial Accounting (New) Define Logical External Tax Calculation  Basic Settings Sales/Purchases Destination

Transaction Code SPRO

2. Enter the following values:

N Ex Event for ext. taxation proc. Function Module RFC Destination

1 V JUR RFC_DETERMINE_JURISDICTION VERTEX_MAXTAX

2 V TAX RFC_CALCULATE_TAXES1 VERTEX_MAXTAX

3 V UPD RFC_CALCULATE_TAXES1 VERTEX_MAXTAX

3. Choose Save.

1.2.3 Maintain Pricing Procedures

Use

This activity maintains pricing procedures.

Procedure

1. Start the following activity:

IMG Menu Define Pricing Control  Pricing  Basic Functions Sales and Distribution and Assign Pricing Procedures

Transaction Code SPRO

2. Enter the following values:

Table VV_T683_VA

N Cl U App Proc LA Destination TSPP PrTy

1 030 A V ZVAXUD EN BU SMB with ext. Jurisd.NEW

2 030 A V ZCAX01 EN Intercompany Billing US Ext. X

3 030 A V ZDPJXD EN myPCC US DownPaym/Tax per doc.

4 030 A V ZSER02 EN Service BP Exp Settlement Ext.

5 030 A V ZSPUS1 EN SP:Resource Related Bill Ext.

6 030 A V ZSPUS2 EN SP: Res Rel Bill Down Pay Ext.

7 030 A V ZSPUS3 EN SP: Res Rel Bill CrossComp Ext

8 030 A V ZU0030 EN Credit memo (US) Ext.

3. Choose Save.

1.2.4 Define Pricing Procedure Determination

Use

This activity defines pricing procedures.

Procedure

1. Start the following activity:

IMG Menu Sales Define and Pricing Control  Pricing  Basic Functions and Distribution Assign Pricing Procedures

Transaction Code OVKK

2. Enter the following values:

Table V_T683V

N SOrg DChl Dv DoPr Cupp PriPr CTyp

1 BP01 01 01 A 1 ZVAXUD PR00

2 BP01 02 01 A 1 ZVAXUD PR00

3 BP01 01 01 I 1 ZCAX01

4 BP01 01 01 V 1 ZSPUS1 RB00

5 BP01 01 01 W 1 ZSER02

6 BP01 01 01 W 2 ZSER02

7 BP01 01 01 Z 1 ZU0030

8 BP01 02 01 Z 1 ZU0030

9 BP01 03 01 I 1 ZCAX01

10 BP01 03 01 I 1 ZCAX01

3. Choose Save.

1.2.5 Activate External Tax Interface

Use

This activity activates external tax interface.

Procedure

1. Start the following activity:

IMG Menu Tax on Financial Accounting Basic Settings (New) Financial Accounting (New) Activate External External Tax Calculation  Basic Settings Sales/Purchases Tax Calculation

Transaction Code SPRO

2. Enter the following values:

Table V_TXD_E

N Reference Ex version of the tax interface TC RFC Destination

1 TAXUSX V TAXDOC00 VERTEX_MAXTAX

3. Choose Save.

1.2.6 Assign Country to Tax Calculation Procedure

Use

This activity assigns a country to tax calculation procedure.

Procedure

1. Start the following activity:

Financial Accounting BasicIMG Menu Financial Accounting (New) Assign Country to Basic Settings  Tax on Sales/Purchases Settings (New) Calculation Procedure

Transaction Code SPRO

2. Enter the following values:

Table V_005_E

N Cty Proc Name

1 US TAXUSX

4. Choose Save.

1.2.7 Allocate Company Code to Non-Taxable Transactions

Use

This activity allocates company code to non-taxable transactions.

Procedure

1. Start the following activity:

IMG Menu Financia Asset Accounting(Lean Asset Accounting l Accounting (New) Assign Input Tax Indicator for Organizational Structures Implementation) Non-Taxable Acquisitions

Transaction Code OBCL

2. Enter the following values:

Table V_001_J

N CoCd Company Name City Input tax code Output tax code Jurisdict. code

1 BP01 SAP Best Practices Palo Alto I0 O0 XX00000000

3. Choose Save.

1.2.8 Create Number Range for External Tax Document

Use

This activity creates a number range for the external tax document.

Procedure

1. Start the following activity:

IMG Menu Financial Tax on Financial Accounting Basic Settings (New) Accounting (New) Define Number External Tax Calculation  Basic Settings Sales/Purchases Ranges for External Tax Returns

Transaction Code OBETX

2. Enter the following values:

Table NRIV

N Object Name Subobject value Number range number To year From number To number Curr. Number External

1 ETXDC_NR 01 0000 000000000001 999999999999

3. Choose Save.

1.2.9 Activate External Updating

Use

This activity activates external updating.

Procedure

1. Start the following activity:

IMG Menu Financial Tax on Financial Accounting Basic Settings (New) Accounting (New) Activate External External Tax Calculation  Basic Settings Sales/Purchases Updating

Transaction Code SPRO

2. Enter the following values:

Table V_TRWCA

N Comp To year Activ

1 EXTX 2999 X

3. Choose Save.

1.2.10 Creating Tax Codes for External Tax Calculation

Use

This activity creates tax codes for external tax calculation.

Procedure

1. Start the following activity:

Transaction Code FTXP

2. The following five tax codes were created for the tax procedure TAXUSX and country US.

Tax Code Description Condition types Tax Type Relevant to Tax Tax Category

O0 A/R Sales Tax Exempt Condition types XR1–XR6 are maintained with a 100% rate. A

(Output tax) 2

O1 A/R Sales Tax Condition types XR1–XR6 are maintained with a 100% rate. A

(Output tax) 0

I0 A/P Tax Exempt Condition types XP1I–XP6I are maintained with a 100% rate. V

(Input tax) 2

I1 A/P Sales Tax Condition types XP1I–XP6I are maintained with a 100% rate. V

(Input tax) 0

U1 A/P Self Assessment Use Tax Condition types XP1I–XP6I are maintained with a 100% rate. Negative 100% is entered for condition types XP1U–ZP6U to force the credit entry to the tax liability accounts. V

(Input tax) 0 1 (Consumer Use Tax)

The values in the Relevant to Tax column can be interpreted as follows:

• Setting the Relevant to tax indicator to 2 will bypass the call to the external tax system, which saves processing time. If handling exemptions within Vertex or Taxware, then this indicator must be set to 0 or space, because the call must be made to Vertex or Taxware to access their exemption handling.

• Leaving the Relevant to tax indicator blank means that the tax code is relevant to tax and a call will be made to Vertex or Taxware to decide the tax rate.

You can verify the settings using transaction FTXP.

1.2.11 Change Jurisdiction Codes for SAP Best Practices Cost Centers

This activity removes the standard jurisdiction codes from cost centers in order for Vertex to determine a valid jurisdiction code. The jurisdiction code found by Vertex is based on our default Palo Alto address.

If you want to create different addresses for each cost center,  Cost Center  Master Data  Cost Centers  Controlling choose Accounting Individual or Collective Processing.

1.2.12 Change Jurisdiction Codes for SAP Best Practices Company Code and Plants

This activity goes through the organizational elements of the SAP Best Practices — company code BP01 and plants BP01 and BP02 — and remove the standard-delivered jurisdiction code from the related addresses in order for Vertex to determine a valid jurisdiction code. The jurisdiction code found by Vertex is based on our default Palo Alto address.

If you want to create a different address for each of the organizational elements, use transaction OBY6 to change the company code address, and transaction OX10 to change the plant addresses.

Hope this will help you.

Regards,

shashikanth

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