Taxes US & Canada - with and w/o Jurisdiction Code

Financials (FI, CO, TR, EC)

Moderators: Snowy, thx4allthefish, Baz, darkduck

Post Reply
Posts: 34
Joined: Mon Oct 27, 2008 3:09 am

Taxes US & Canada - with and w/o Jurisdiction Code

Post by yukka2000 » Mon Mar 10, 2014 4:03 am

Hello Gurus,

We are going to implement SAP in USA & Canada. As of now business requirement for tax jurisdiction concept is not clear. We would like to have contigency plan if such requirement shows up.
We are going to use external application for AP tax calculation and in AR SAP tax procedure will be applied. Company operates in many states/provinces, it does international business and has also plenty of intercompany operations.

The questions are:
1. Did anyone switched from "no tax jurisdiction code" to "tax jurisdiction code" concept and tax procedure?
2. What are the challanges here? Technically it should be possible.
3. What about legacy data and reporting on previous periods?
4. I understand technically the effort would be similar to implement tax jurisdiction code at later stage as it is at initial stage. However from business point of view it might be cumbersome for the users.
5. Is there any "light-weight" version of "tax jurisdiction" concept that can be introduced at initial stage? In this case more restrictive validation on data would be launched at later stage.
At initial stage only most general settings would be prepared and dummy values?
6. We are doing numerous interstate sales/purchases. Purchasing taxes will be handled by external app. Is it technically viable to maintain and transport tax codes for each jurisdiction code where sales operations occur?


Post Reply