You must maintain master data in MM to provide ship-to and ship-from location information for procurement of goods and services within the MM and FI modules.

The ship-to location represents where the consumption of goods and services occurs for sales and use tax calculations.

The ship-from location is required to correctly calculate sales and use tax in certain jurisdictions.

Additionally, the tax classification of the material must be maintained. This provides the taxability determination for the purchasing of goods and services.

You must carry out the following steps: