US: tax calculation procedure

[Mika_Suzumoto]

Dear expart

We will implement S/4HANA cloud to several group companies in the US.
The 1st US company would like to use the internal tax calculation procedure (without connecting to external tax service such as Vertex), whereas the other companies need to use the external tax calculation procedure.
I understand the tax procedure cannot change once the journal entries are posted to any of the US company in a system.

I would like to confirm about the best way to deal with this case where multiple US companies are installed in the same tenant, and there is a mix of companies that calculate taxes both Internally and Externally?

Should we set the external tax procedure (0TXUSX) for our case and setup the required connection setting now?

Best regards.

Mika Suzumoto

[OwenLiu]

Checking internally.

[Anthony_Santoro · Accepted solution]

 Thank you for your question. I'm sorry that this went unanswered for this long, but perhaps I can help some.

Tax calculation procedures are set at the country level. not the company code level. This means that you can't use a mix of internal and external calculation for the US. In this case, because there are several companies in the group that need to use an external tax provider, the solution is for all companies in the group to do so.

@Mika_Suzumoto