Customer/Vendor Master Data : External Determination of the Tax Jurisdiction Code.
Description
Release 3.0A has the capability to automatically determine tax jurisdiction codes using address data supplied by an external system.
The determined value is adopted if no tax jurisdiction code was entered for the customer or vendor. If the entered value differs from the system-determined value, you will receive a warning message. If the address information is incomplete, you will see a popup menu with a selection of possible addresses.
Software/hardware requirements
The external system for determining the tax jurisdiction code must be installed on your system.
Change system parameters in customizing
External determination of the tax jurisdiction code is only executed for customers and vendors from countries whose tax calculation procedure for the field 'external system active', contains a value which differs from the initially defined value. You can define this under "Basic settings" in the Financial Accounting Implementation Guide.
You can find further information on this in the chapter 
"Specify structure for tax jurisdiction code" in the
Implementation Guide.