Tax Jurisdiction Code (USA)
The tax jurisdiction code is used in the United States for determining tax rates. The tax jurisdiction code defines the tax authority to which taxes must be paid. The determining location is the location to which the asset was delivered. You enter this code in the asset master record under time-dependent data.
When you post using a tax calculation table, the system enters the tax jurisdiction code in the FI document. For asset postings, the system determines the tax jurisdiction code based on the logic below:
Procedure 3 is intended for instances when taxes on sales/purchases do not apply to the business transaction.
Using sort versions and the offset procedure, it is possible to use the tax jurisdiction code as a sort criterion for reporting. For more information, seeGeneral Functions of Standard Reports and Sort Versions
For more information on tax jurisdiction codes, see the FI Implementation Guide (Company code® Taxes on sales/purchases).