Automatically Derive Tax Jurisdiction on Business Partner

[jongilman]

Insurance companies using business partner master data in SAP often need to default tax jurisdiction code on the business partner master record in order to be able to create a contract account.  Many choose to default this data in an interface or simply manually key in the data.  However, there is a simple and elegant way to automatically derive for the correct tax jurisdiction code based on configuration.  Follow these steps:

• In SPRO, navigate to Cross-Application Components > SAP Business Partner > Business Partner > Basic Settings > Tax Jurisdictions > Using SAP Software > Assign Tax Jurisdictions to Regions and Postal Codes > Assign Tax Jurisdictions to Regions.  Here you can assign a default tax jurisdiction for each state:

You could also assign jurisdictions by postal code, which is more specific (and accurate), but you would need to keep the configuration table up to date with values from a 3rd party vendor.  If you're not calculating sales tax, then you can stick with the state defaults above.

• In SE18, create an implementation of the BAdI called ADDR_TXJCD_CHECK.  In the method IF_EX_ADDR_TXJCD_CHECK~SWITCH_ADDRESS_FIELDS, paste the following code:

*  GRAB THE TAX JURISDICTION CODE BASED ON STATE AND COUNTRY

  IF ( NOT IM_ADRC_STRUC-COUNTRY IS INITIAL ) AND ( NOT IM_ADRC_STRUC-REGION IS INITIAL ).

    SELECT SINGLE TAXJURCODE FROM COMC_TAXJUR_REG INTO CH_TAXJURCODE

      WHERE COUNTRY = IM_ADRC_STRUC-COUNTRY

      AND REGION = IM_ADRC_STRUC-REGION.

  ENDIF.

Activate everything and you are done.  The system will now default during address creation based on the state and country values in the configuration table from step 1.