Activate External Tax Calculation 

Use

To define how the tax calculation procedure TAXUSX accesses the external tax system, the external system ID, the RFC destination and the tax interface version need to be assigned.

Procedure

In Customizing for Financial Accounting, choose Financial Accounting Global Settings ® Tax on Sales/Purchases ® Basic Settings ®External Tax Calculation ®Activate External Tax Calculation (Table TTXD).

External Tax System ID (ExID)

Define an ID for the active external tax system, such as T (Taxware) or V (Vertex).

In the SAP system, populating this field has the following consequence:

Tax calculation takes place using an external system. Therefore, when maintaining tax codes, the system does not ask for a jurisdiction code. The required jurisdiction codes are automatically determined by the external tax system during master record creation/change. These jurisdiction codes are passed to the external tax system through the tax interface system, which is then called by the tax calculation procedure TAXUSX.

RFC Destination

The logical destination name for the RFC destination defines the path for the external tax system API executable file.

In Customizing, the activity Define Logical Destination and, therefore, the table TTXC is no longer relevant for configuration.

Interface Version (Int. Version)

The current SAP API interface version is TAXDOC00.

The tax interface version is the specific SAP API version used by the external tax system for communicating with the SAP system. Each new SAP API version comes with new functions and usually corresponds to an SAP release. It is advisable that the external tax system supports the latest version. After you have installed the latest version of the external tax system API, you must set this field accordingly.

As of Release 4.6A, SAP does not support any interface version earlier than TAXDOC00.