Tax with Jurisdiction Code (Accounts Receivable) 

In the USA and Brazil, taxes are sometimes calculated using jurisdiction codes.

A jurisdiction code is a key that, in conjunction with the tax code, determines the amount of tax and the breakdown of the total tax amount among the different tax authorities.

The jurisdiction code contains several different components.

Jurisdiction Code 250221105

25 = State Code

022 = County Code

1105 = City Code

In order to post a document using a jurisdiction code, you must ensure that all the state codes (= the highest level of the jurisdiction code) in a document have the same tax base (net or gross) and the same cash discount basis.

In jurisdiction code 250221105, taxes are determined based on the definition for jurisdiction code 250000000.

If all the jurisdiction codes in a document do not have the same state code, you must manually separate the transaction into individual documents.

To enter taxes using a jurisdiction code, proceed as follows:

  1. Enter the total invoice amount and a tax code in the customer item.
  2. Depending on how you process your invoices, enter either the gross or net amount in the G/L account line item and if necessary, a tax code and jurisdiction code.

    3. If you enter a tax code in the customer item, the system uses it for the G/L item. If the system cannot derive the jurisdiction code from the cost center, plant or customer master record, you have to enter it manually.

  3. To enter the tax amounts in the G/L account items, choose Extras ® Tax amounts. You can branch to this screen at any point during document entry.

    4. The Tax Amounts screen shows the tax amount, tax code, posting key, tax base amount and jurisdiction code for all the items already entered. When you call up this screen after entering the G/L account items, it displays the amounts that have already been entered.

    You can now choose how you want to enter the taxes.

    a) Per taxable item ( per jurisdiction code). This is the predefined variant. If you know the total tax amounts per taxable item, you enter the tax amounts for each taxable item after entering the G/L account items.

    or

    b) Per taxing authority (per state, county, city). If you only possess the specifications for the individual taxing authorities, you choose this variant.

    The usual entry procedure for taxes involves entering the taxable items first. To switch to the entry screen for each taxing authority, choose Goto ® Detail. If, when entering the tax in this way, the amounts are changed in the detail screen, it is no longer possible to return to the taxable item entry screen. Instead you have to carry on entering the taxes per taxing authority.

    If you want to enter the tax using variant a), enter the tax amounts for each jurisdiction code in the Tax amounts screen. On this screen you can enter items with tax codes that have not yet been entered or you can change the amounts already entered. When entering a new tax code in this screen, you must also enter a posting key (in addition to the amount and tax code).

    Amount Tx PK Tax base amount Jurisdiction code

    1.100,00 I9 40 1.100,00 250221105...

     

    If you want to enter taxes using variant b), go to the tax detail screen with Goto ® Detail. This screen displays the tax data broken down by amount, tax code, posting key, tax base amount, jurisdiction code, and condition type. The jurisdiction code is also broken down by state, county and city.

    Amount Tx PK Tax base amount Jurisdiction code CnTy...

    550,00 I9 40 1.100,00 250000000 JP1I...

    330,00 I9 40 1.100,00 250220000 JP2I...

    220,00 I9 40 1.100,00 250221105 JP3I...

     

    On this screen you can enter the taxes with as much extra information as you require. After you select ENTER, your individual entries are summarized per taxing authority. Note that once you have entered data in the detail screen, you cannot later return to the interim screen Tax amounts, but rather can only go directly to the detail screen.

  4. Post the document.