[CP-846]: Tax calculation in external systems in partnership with Vertex

This feature enables integration between the SAP Ariba solution and Vertex, or alternative 3rd party tax provider (Open API), in addition to the integration with OneSource from Thompson Reuters. Buyers can choose either or both requisitions and invoice reconciliation documents as the approvable types for which taxes should be calculated using the external tax solution during following actions:

* Manually initiate tax calculation for a document
* Submit a document for approval 
* Approve a document

General Availability -- June 2018

This functionality is “Off” by default. Customers will need to submit a Case to have this feature enabled.

This feature can be enabled for customers in sap realm by the Feature id – P2X-670, Name – ExternalTaxIntegration

SAP Ariba Customer Support configures the following existing parameters:

• Application.Procure.EnableTaxCalculationInExternalSystems: To allow tax calculation on approvable documents, such as requisitions and invoice reconciliations in a third-party tax calculation system integrated with the SAP Ariba solution. Required with either of these additional parameters:

• Application.Procure.EnableTaxesChargesAndDiscount: This parameter, when enabled, supports adding taxes, charges, and discount to requisitions.

• (If applicable) Application.Invoicing.UseNativeTaxEngineForWithholdingTaxes: Specifies whether withholding taxes for invoice reconciliation documents are calculated natively using the enhanced tax computation engine, while the SAP Ariba solution is configured to calculate indirect taxes for such documents using tax information in third-party systems.

SAP Ariba Procurement solutions support two tax categories - indirect tax and withholding tax.

Indirect taxes include taxes levied on services and goods. These taxes are added to the total invoice amount and paid to the supplier, who in turn pays them to the government.

Withholding taxes are not included in the invoice amount payable to the supplier. Buying organization are responsible to pay withholding taxes directly to the government.

Users can apply indirect taxes on requisitions, invoices, and invoice reconciliation documents whereas withholding taxes can only be applied on invoices and invoice reconciliation documents.

Buyer must have an agreement with the third-party tax provider organization to integrate with their systems to calculate taxes for requisitions and invoice reconciliation documents.

KT can be found here in Feature Content in a Box. This KT contains use case examples and screenshots.

Purchasing