Tax with Jurisdiction Code (SAP Library - FI Accounts Receivable and Accounts Payable)

Tax with Jurisdiction Code

Definition

A jurisdiction code is a key that, in conjunction with the tax code, determines the amount of tax and the breakdown of the total tax amount among the different tax authorities.

Use

In the USA and Brazil, taxes are sometimes calculated using jurisdiction codes.

Structure

The jurisdiction code contains several different components.

Example

Jurisdiction Code 250221105

25 = State Code

022 = County Code

1105 = City Code

Integration

In order to post a document using a jurisdiction code, you must ensure that all the state codes (= the highest level of the jurisdiction code) in a document have the same tax base (net or gross) and the same cash discount basis.

Example

In jurisdiction code 250221105, taxes are determined based on the definition for jurisdiction code 250000000.

If all the jurisdiction codes in a document do not have the same state code, you must manually separate the transaction into individual documents.