Companies like Vertex, Taxware, Sabrix keep the tax percentage on their server. When the transaction is entered in sap, the software determines the jurisdiction code and retrieves the tax percentage from the Vertex/Taxware/Sabrix server. Defining how many characters represent the state, how many characters represent the county, how many characters represent the city, and how many characters represent the district is called a tax jurisdiction structure. When a business transaction takes place, the tax number is provided and the system derives from the information on the code of the tax territory. The corresponding tax percentage maintained for the type of tax condition is applied to the calculation of the amount of tax. The amount of the tax is recorded in the GL account assigned to the type of condition. Hi Leandropia – We currently need to expand a number of postal codes for a particular jurisdiction code. You have specified, if this happens, to modify only the existing zone. This is not possible even in change mode. Do I need to copy the existing entry, edit the zone, and delete the old zone? Please confirm. The composition of the tax territory code is called the tax jurisdiction structure. When a business transaction is recorded, the tax number is specified.
The system calculates the amount of the fee for each type of condition. Condition types are mapped to the account key and the account key is associated with the GL account. Home → CIN → Structure for Fiscal Sovereignty Diction Code Each country has a list of different taxes that may be applicable to a business transaction in the country. Once the base amount and tax rate of a transaction are known, the amount of tax can be calculated. Map the tax sovereignty codes previously created to the zones on postal codes using the following path: Sir, your blog about SAP Customizing in Brazil is really great and visit them almost every day. Can I ask you to send me the postal codes and tax sovereignty you mentioned above on the blog? I want to get Brazilian postal codes and tax jurisdiction codes How is the tax percentage maintained when the tax identification territory code is used? 4 – Enable external tax calculation – Here you enable access to the external tax system according to the tax calculation method. You bind the procedure used to external events. In addition, you can choose whether the system should automatically redetermine incorrect liability codes or whether an error message should be generated if the selected liability code does not match the address data. For the first behavior, enable the TC flag. If not, trigger it.
I also need a list for the current tax jurisdictions associated with postal codes in BR. Can you please send it to wotan77 on gmail? Oi Leando nos nos temos toda essa configuracao no sistema e ate agora nao tivemos problemas em criar clients Brasileiros aqui no UK, mas de repente comecamos a ter este problema: „Error in length of tax jurisdiction SP”. Sabe se houve alteracao recente na legislacao? Obrigada Olga 7 – Assign jurisdiction codes to zip code areas – Each geographic region can include a series of tax jurisdictions, which in turn are defined by their zip codes. Here, you assign a series of postal codes to each tax territory code. For each tax territory code, assign the geographic region and the start and end postal codes. If you keep the Brazilian address data (in the cards or transaction data) and enter the zip code and geographic region, the system automatically assigns the correct tax territory code Different business transaction may invite different types of taxes with different tax rates. If possible, could you please send me the complete list of CEP + CEP zones by city + IBGE codes for cities in Brazil? How does the system decide the sovereign fiscal order in a commercial transaction? — The tax percentage is recovered from external sources such as Vertex/Taxware/Sabrix, etc. according to the code of the tax territory. Hello Leandropia! Could you please share with me the list of jurisdiction codes and zip code areas? Thank you very much! mariahjimenez@outlook.com document you entered has a company code.
The company code leads to the country, the country leads to tax procedures. The procedure has condition types, but the percentage of taxation for condition types is retained in combination with the tax code and the tax territory code. In sap, each tax authority is created as a tax territory code. 6 – Defining the laws on fiscal sovereignty – The sovereign fiscal order in Brazil consists of two parts: the order of the state and the order of the city (municipal). It is a code to determine tax rates in Brazil; it controls which tax authorities must be paid for a particular transaction. The system also requires the second part of the sovereign fiscal order, the municipal code, for the calculation of the ISS and for the SPED declaration. For the calculation of the ICMS and the SubTrib, the tax region is sufficient. Hello Leandropia, your article is very useful.
Thank you for sharing this information. I also need to update the T7BRCITY table in SAP, Can you please provide me with the complete list of all municipalities with their jurs codes and postal code ranges so that I can use them for my downloads? The tax jurisdiction number consists of codes that represent the state/county/city/county. A business transaction can trigger different types of taxes with different tax rates. Therefore, in sap, the types of tax conditions are assigned to the tax percentage. This combination of types of tax conditions and the corresponding tax percentage is stored in the tax number. I have a question: for some BP, I had the postal code range and region information, but fiscal sovereignty is not automatically specified (I checked the table to see if the postal code range exists and if a jurisdiction code was linked. It was). When I edit the BP manually, it seems that the BP change/update is somewhat re-triggered so that the jurisdiction code is provided. I do not know what exactly is happening on the system. Do you encounter this kind of problem? Hello Leandropia! Thank you for your excellent blog. Can you please share with me the list of jurisdiction codes and zip code areas? That would help me a lot.
Thank you very much! rialitaet@gmail.com With a large number of tax laws (tax authorities), each regulating its own tax rate, it becomes very difficult for companies to keep up with the current tax rate. Instead of allocating resources to tracking the tax percentage, businesses enlist the help of other companies that keep the tax rate up to date for each tax district code. In the United States, the tax authority is different for each area and the tax authority decides the percentage of taxation in that area. Therefore, the percentage of taxation applicable to a business transaction depends on the area to which the transaction belongs (the tax is due to which tax authority). SAP IMG Path: – SPRO > SAP Reference IMG (F5) > Financial Accounting > Financial Accounting Global Settings > Sales/Purchasing Tax > Basic Setting > Structure for Tax Territory Identifiers Transaction Code: – OBCO Hello Leondropia, this is a great blog. Now I am faced with two mistakes with the client, one is that no clear tax sovereignty code could be determined. They did not retain any court orders, but only a „01” for the AM region. This error occurs only if the region is AM.
Second, the TXJCD field for other regions of KNA1 is not updated Sap manages this requirement using the concept of the tax territory code. Each tax authority is created as a tax territory code in sap. Can you provide me with the complete list of all municipalities with their jurisdiction codes and postal code areas? Tax sovereignty specifies the different tax authorities to which you submit payments at up to four levels representing the state, country, city, and others in your tax sovereignty structure. I just sent you the email asking for the list of codes for Brazil – Tax Jurisdiction and the corresponding postal codes. Tax Jurisdiction Code = (State + County + City + County) Therefore, in the United States, tax percentages are mapped to the types of tax conditions for the combination of the tax code and the tax sovereignty code….