Integration of the calculation (based on location) of taxes in the Real Estate Management component.
Taxes can be calculated on a local level and not just on a national level as is the case in the USA or Canada
This extension is based on the financial accounting component where the location is coded in the form of the jurisdiction code for the purposes of tax calculation. In the jurisdiction codes the definition of the tax percentage rate can also be time dependent.
Note
You find additional information about the types of tax collection in the documentation for the Financial Accounting (FI) component: Types of tax collection .
You can assign jurisdiction codes to the following objects:
Real Estate Management objects (business entity, property, building, rental unit)
Lease-out
Management contract
In the Financial Accounting Customizing , you implement the corresponding activities for the sales tax :
Internal tax accounting (in the SAP System):
Manual maintenance of the percentage rates for each jurisdiction code or
External tax calculation:
Management of percentage rates for each jurisdiction code via RFC (Remote Function Call) with external companies (Vertex, Taxware, Sabrix etc.).
Set the method of tax accounting in the Financial Accounting Customizing
Maintain the jurisdiction codes in the required master records in RE:
Real Estate objects |
Lease-out |
Management contract |
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Caution The assignment of the codes is based on a hierarchical concept: If there is no jurisdiction code for an object (e.g. rental unit), the code of the superior object is used (e.g. the code of the building; if this is not available the business entity is used) End of the caution. |
You can set a jurisdiction code for each condition type, if required. Caution If this code is not entered, the rental unit or the superior object is used for the calculating the code. End of the caution. |
You can maintain two codes for each fee type for management contracts:
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The taxes are calculated according to the percentage rates per jurisdiction code for every commercial operation that involves taxes.