In Thailand, each business place is responsible for collecting and reporting its own value-added tax (VAT) (for more information, refer to Business Places (FI) (see link below).

Since most vendor invoices that you enter in Materials Management (MM) contain VAT amounts, you have to assign them to the appropriate business place. This means that when a business place prepares its tax returns, they also show the VAT items from those documents.

Since the business place's purpose is to collect and report VAT items, it is essentially a Financial Accounting (FI) organizational unit. So set up the business places as described under Business Places (FI).

When you enter a vendor invoice in Logistics Invoice Verification (MM-IV-LIV), you have to enter the business place in the document header manually.

When you post the vendor invoice to FI, the system automatically creates an accounting document, assigning each line item in it to the business place from the billing document.

If you create another billing document for the invoice, for example, a credit memo, the system automatically assigns the new billing document to the same business place as the original invoice.