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Incorrect Tax Country in Third-Party Purchase Order

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Dear experts,

In our Third-Party Purchase Orders, the country of the supplier is defaulted instead of our company's.

We found the following case document in ByD.

1713747 - Wrong Tax Event for Third-Party Purchase Orders. Tax Country Code of Foreign Account is Wrongly Fetched for Tax Determination

And found the following remarks in the end of the case document:


This is a new requirement. At present the tax determination is based on the ship-from address of the supplier and the ship-to address of the account (final recipient) rather than the bill-to address for your company.

The above requirement will be part of a future release of SAP Business ByDesign. Until then, the tax details for the purchase orders must be maintained manually.


Is it now possible to default Tax Country with the company's country for any kind of Purchase Orders?

Best Regards,


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Answers (1)

Answers (1)

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Hi Fred,

I think, this is not supported at the moment.

In Third-party order processing scenarios involve at least three parties: Seller, account, and supplier. Here the item is shipped directly from the supplier to the account or ship-to party. From a taxation point of view, the scenarios where the sales transaction crosses borders and the subject to tax has to be determined, are of interest.

This also has an impact onto the country where the taxes have to be paid. In the following processes, the system supports the user by displaying warning messages and triggering a check of the tax codes:

•You are a supplier in a chain transaction and you enter a ship-to party that is different from the account. The system displays the message if the head offices of the ship-to party and your company are in different countries.

Note: Chain transaction means consecutive supplies of goods between three or more legal entities, where the contractual obligations of all parties in the chain are discharged by a single movement of goods from the first supplier in the chain to the final customer.

•In a third-party deal, you are the company that creates a sales order to which an external supplier is assigned. The external supplier delivers the goods directly to the customer. These transactions are generally not invoiced automatically during an invoice run.

Further you can go to Ideas forum & Vote for the below idea.

Tax calculation on third party delivery should be supported in tax engine. (

Or Create a New Idea and ask for pushing this.

Best Regards,