The business place in Korea is a legal hierarchical layer located under the company code. It can be matched with plants but this is not mandatory. Usually Korean companies have more than one business place and larger corporations may have several dozen of them. A business place can be seen as part of the company under jurisdiction of one tax office. Tax reporting is done on business place level to the tax office which has the jurisdiction of that particular business place.

Organizational data such as the name and address of the business place representative and more importantly, the VAT registration number (10 digits, first 3 representing the number of the tax office), is stored at the business place level. Each business place is assigned a VAT registration number from the tax office. A business place is allowed to issue invoices only after it is assigned a VAT registration number.

The information stored on business place level must be listed in VAT reporting and printed on the VAT invoices (Tax Invoice). The VAT invoice has to be issued when selling a good. It is the official form of an invoice which is valid in the whole country and states the VAT amount due when a product is sold.

In the R/3 system the number of characters for business place is limited to 4.

Here you enter the following business place variables:

• Name of the representative
• Type of business
• Type of Industry
• Social ID number
• VAT registration number
• Tax Office

The address for the business place is maintained by using the central address maintaining function. To reach the address fields you have just to click on the envelope symbol in the icon bar when maintaining the business place master data.