How do tax code lookups and tax code lookup field maps work?

How do we add custom fields to the tax code lookup?

Tax code lookups enable automatic application of tax codes on requisitions and invoice reconciliation documents. Tax code lookup field maps define the mapping between tax code lookup fields and line item fields of requisitions, invoices, and invoice reconciliation documents. Tax managers and customer administrators can define tax code lookups using CSV file import. Tax managers and customer administrators can define tax code lookup field maps using CSV file import and the Tax Manager user interface.

Tax Code Lookups

For indirect taxes, the tax code lookup fields are mapped to requisition, invoice, or invoice reconciliation line item fields. Based on this mapping, system applies indirect tax codes on requisition, invoice, or invoice reconciliation line items. For withholding taxes, the tax code lookup fields are mapped to invoice and invoice reconciliation line item fields. Based on this, the system applies withholding tax codes at the header or line-item level on invoices and invoice reconciliation documents.

The table below depicts how tax codes are automatically identified based on the values of different line item fields. You can see that the tax code TAX-US1 is applicable on a line item having commodity code 10001, which is being shipped from USA to USA. This tax code will get applied if the automatic tax application occurs between January 1, 2014 and December 31, 2020.

If multiple tax codes are specified for the same combination of line item field values, then the tax code to be applied is selected based on its rank. If the ranks are also the same, then any of tax codes is considered to be a applicable on the line item. In the table above, the tax code TAX-DE2 will be applied on the line item.

Please note, once a tax code is set on a line item it can only be retriggered to another tax code. The tax code will not be defaulted back to null or blank in the line item.

For instance, if the TaxCode on the line item is defaulted to TAX-US1 and if the user changes the line item fields that doesn't have any valid mapping in the Tax lookup file, the tax code will not be defaulted back to Null or blank. The tax code value will be still set as TAX-US1.

About Adding Custom Fields to the Tax Code Lookup

You can add custom fields to the tax code lookup to enable tax calculation based on additional criteria. To do this, you need to engage SAP Services team. New field requests and other field-related customizations can be purchased through the SAP Store* for completion by an SAP Services team. (https://www.sapstore.com/solutions/45000/Custom-field-package-for-SAP-Ariba-solutions)

Invoicing
Invoicing > Invoice Reconciliation > Invoice Reconciliation Tax Tables
Purchasing
Purchasing > Receiving