Tax registration in a foreign country - service orders

If you create a service order, LN stores the financial department of the order on the order header. Initially, the financial department is equal to the service department of the order and in this way, the initial tax country is the home country of the financial company of the service department.

When you create a service order line, based on the order data, the tax logic determines the tax country which must be the country of the financial company of the financial department. When the tax country for the service order line is different from the country of the financial company of the financial department, you must change the financial department before you save the line. For the next lines, the tax country must be equal to this country else an error message is displayed.

Note: You can change the financial department on the order header if no financial postings exist for the order. If financial postings exist, LN displays an error message.

The same rules apply to service orders created from a service call. The service department that owns the call does not invoice the customer and LN does not create any financial postings based on the service call.

Note: In Service, LN does not determine tax details for estimated cost lines. LN determines the tax details of the order lines when the actual lines are created if you release the service order.

The tax details of service cost types

The criteria to determine the tax details for material lines and for labor lines and cost lines differ as follows:

Materials

The tax details are based on:
- The buy-from business partner
- The item
- The cost component
- The cost type
- Whether the VAT is based on Services or Goods
- The warehouse
- Whether the material is exempt from taxation
Labor and Costs

The tax details are based on:
- The cost component
- The cost type
- Whether the VAT is based on Services or Goods
- Whether the labor or cost item is exempt from taxation