Tax Exceptions by Country (tctax1100m000)

Use this session to define tax code exceptions or tax exemptions for a specific order origin.

You can define the tax exceptions or exemptions for one specific business partner or for all business partners.

You can enter specific values for a number of logistic transaction details. For details that are not applicable or that you do not use as a criterion, you can select Not Applicable, or leave the fields empty.

If you do not want to use the department, the delivery terms, and/or the item as criteria, you can indicate this in the Tax Parameters (tctax0100m000) session.

In the Outcome of Tax Model group box, you can enter the tax code and tax country for the transactions that answer the specified criteria.

Sales (All):

Performance aspects

The settings in this session could affect system performance and database growth. For more information, refer to Model tax exceptions.

Field Information

Financial Company Set

The financial company set to which the tax exceptions apply.

LN applies the tax exceptions in all the companies of the company set.

Text

If this check box is selected, a text is present.

Order Origin

The type of orders to which the tax exceptions apply.

Allowed values

Sales
Triangular Invoicing (Sales)
Triangular Invoicing (Purchase)
Direct Delivery Internal (Sales)
Direct Delivery Internal (Purchase)
Bilateral Invoicing (Sales)
Bilateral Invoicing (Purchase)
Freight - Internal Invoicing (Sales)
Freight - Internal Invoicing (Purchase)
PCS - Internal Invoicing (Sales)
PCS - Internal Invoicing (Purchase)
Sales Advance
All
Not Applicable
Purchase
Service
Maintenance Sales
Service Calls
Service Contracts
Sales Invoice: The application considers only the Sales Invoices.
Purchase Invoice: The application considers only the Purchase Invoices.
Manual Sales Invoice
Bank Transactions (Receipt)
Bank Transactions (Payment)
Sales (All): The application considers Sales Orders, Schedules and Contracts and the Warehouse Orders of the type Sales (Manual).
Project
Purchase (All): The application considers Purchase Orders, Schedules and Contracts and the Warehouse Orders of the type Purchase (Manual).
Freight - Customer Invoicing
Freight - Carrier/LSP Invoicing
Customer Claim
Supplier Claim
Intercompany Trade (Sales)
Intercompany Trade (Purchase)

Note: The project transactions are handled similar to sales transactions. If exceptions are required for project transactions, the Tax Order Origin must be set as Sales.

Buy-from / Sold-to BP

The buy-from (for purchase transactions) or sold-to (for sales transactions) business partner for which you define the exception.

If the exception applies to all sold-to business partners, leave this field empty.

Ship-from / Ship-to BP

The ship-from (for purchase transactions) or ship-to (for sales transactions) business partner for which you define the exception.

If the exception applies to all ship-to business partners, leave this field empty.

Sequence Number

The generated line sequence number.

Description

An optional description of the type of exception and/or the reason for the exception.

Weight

The priority of the exception.

The application uses the tax exceptions to determine a tax code for a transaction in the order of their weight. A high value reflects a high priority.

Exempt

If this check box is selected, the tax code represents a tax exemption.

Intercompany Trade Scenario

The intercompany trade scenario.

Allowed values

External Material Delivery Sales

The ownership of the goods changes from an internal financial entity to an external business partner (or affiliated company) based on an order of another internal financial entity, which invoices the external customer.

Example

Sales office S1 and warehouse W1 are part of organization A, but are located in different countries. To fulfill a sales order to an external customer, S1 instructs W1 to deliver the goods to the customer. The warehouse W1 sends an internal invoice to sales office S1 to cover the costs for the goods and the delivery.

Supported price origins

Cost-Plus
Commercial Price
Sales Order Price (Gross)
Sales Order Price (Net)
Sales Order Customs Value
Profit Split (Gross)
Profit Split (Net)

External (Material) Delivery Purchase

The ownership of the goods changes from an external supplier (which can be an affiliated company) to an internal financial entity based on an order of another internal financial entity, which is invoiced by the external supplier.

Example

A multinational organization has a central purchase office that buys materials for its production plants located in various countries. The purchase office buys the materials from external suppliers. The production plants are modeled as separate financial entities. The purchase office charges the production plants internally for the costs it made.

To charge the production plants, the central purchase office sends intercompany trade orders to the production plants. The charges can be based on various pricing rules, such as the purchase price paid to the external supplier.

Supported price origins

Cost-Plus
Commercial Price
Purchase Order Price (Gross)
Purchase Order Price (Net)

This scenario is applicable if Order Management and Service are implemented.

Project (PCS) Delivery

Invoicing between a project calculation office and a warehouse or other departments.

Supported price origin: Cost-Plus

WIP Transfer

In case of WIP transfers, work in progress is transferred from one work center to another work center. Each work center is defined as an entity. Each entity belongs to a different internal financial entity. The shipping work center invoices the receiving work center, because ownership changes directly from one internal financial entity to another internal financial entity. Supported price origin: Cost-Plus (without markup).

External Material Direct Delivery

The ownership of the goods changes from one external legal entity to an external business partner based on two orders, for example a sales order and a purchase order, from different internal legal entities.

Example

To fulfill a sales order for an external customer, sales office A instructs purchase office A1 to purchase goods from an external supplier. The supplier delivers the goods directly to the external customer. Sales office A invoices the external customer. The external supplier invoices purchase office A1. To be compensated for the costs incurred, purchase office A1 sends an internal invoice to sales office A.

Supported price origins

Cost-Plus
Commercial Price
Sales Order Price (Gross)
Sales Order Price (Net)
Sales Order Customs Value
Purchase Order Price (Gross)
Purchase Order Price (Net)
Profit Split (Gross)
Profit Split (Net)

Internal Material Delivery

Goods and the related ownership are transferred from one internal financial entity to another internal financial entity. For example, a warehouse transfer in which goods are transferred from one warehouse to another. Both warehouses are defined as entities. In this scenario, the shipping entity incurs costs on behalf of the receiving entity, or invoices the receiving entity.

Supported price origins

Cost-Plus
Commercial Price

Note:

Also used as Time and Material subscenario of the Subcontracting Depot Repair and Internal Service Deliveryscenarios, in which case the supported price origins are:

Cost-Plus
Commercial Price
Zero Price

Freight

Freight costs are invoiced by a shipping office to a warehouse, sales office, or other department.

If a freight order is created for an order, such as a sales order, transfer order, or purchase order, the shipping office pays the freight costs. If specified, to be compensated for the freight costs the shipping office sends an internal invoice to the sales office, warehouse or purchase office on whose behalf the freight costs are incurred. The shipping office and the other departments are defined as entities.

In this scenario, a shipping office is the selling entity and a warehouse, sales office or other department is the buying entity on the intercompany trade order.

See Intercompany trade scenario Freight - process and setup and Internal and external freight invoicing.

Supported price origins

Cost-Plus
Commercial Price

Subcontracting Depot Repair

Operations or activities are carried out by one financial entity on behalf of another financial entity and costs are incurred, for example, material or labor, for these operations or activities.

Example

A work order to repair an item, linked to a maintenance sales order of another financial entity.

Supported price origins:

Time and Material
Commercial Price

Internal Service Delivery

In this scenario, a financial entity within the Service package carries out activities on behalf of another financial entity within the Project package. The entity in Service invoices the Project entity for costs incurred such as the rental of equipment, labor, materials, or travel time.

Example

A service order activity for renting out equipment to a project of another financial entity. The equipment office of the service order activity invoices the project management office for equipment rented out to the project management office that uses the equipment to carry out a project for a customer.

Supported price origins:

Time and Material
Commercial Price

Expenses

The intercompany trade scenario Expenses is used to determine the intercompany trade amount that the department of the employee who made the expenses charges internally to the department on whose behalf the expenses are made.

Supported price origins

Cost-Plus
Commercial Price
Zero Price

Labor

The intercompany trade scenario Labor is used to determine the intercompany trade amount that the department of the employee who books the hours charges internally to the department on whose behalf the hours are booked.

This scenario is also used as a Time and Material subscenario of the Subcontracting Depot Repair and Internal Service Deliveryscenarios.

Supported price origins

Cost-Plus
Commercial Price

Other

Time and Material subscenario of the Subcontracting Depot Repair and Internal Service Deliveryscenarios.

Supported price origins

Cost-Plus
Zero Price

Subcontracting

This subscenario is used to determine the intercompany trade amount for these objects:

Service order lines of cost type Subcontracting.
Maintenance sales order lines of cost type Subcontracting
Claim lines of cost type Subcontracting

Supported price origins

Cost-Plus
Commercial Price
Zero Price

Tooling

This subscenario is used to determine the intercompany trade amount for these objects:

Service order lines of cost type Tooling.
Maintenance work order lines of cost type Tooling
Claim lines of cost type Tooling

Supported price origins

Cost-Plus
Commercial Price
Zero Price

Travel Time

This subscenario is used to determine the intercompany trade amount for these objects:

Service order lines of cost type Traveling with travel specification time Travel Time.
Claim lines of cost type Traveling with travel specification time Travel Time.

Supported price origins

Cost-Plus
Commercial Price
Zero Price

Travel Other

This subscenario is used to determine the intercompany trade amount for these objects:

Service order lines of cost type Traveling with travel specification time other than Travel Time.
Claim lines of cost type Traveling with travel specification time other than Travel Time.

Supported price origins

Cost-Plus
Commercial Price
Zero Price

Help Desk

This subscenario is used to determine the intercompany trade amount for these objects:

Service order lines of cost type Help Desk.
Maintenance sales order lines of cost type Help Desk
Claim lines of cost type Help Desk
Service calls

Supported price origins

Cost-Plus
Commercial Price
Zero Price

Rental

This subcenario is used to determine the intercompany trade amount that the department that incurred the costs of renting out equipment charges internally to the department on whose behalf the costs are made. Usually the time that the equipment is rented out is specified for this scenario.

Supported price origins

Cost-Plus
Commercial Price
Zero Price

Note:

This field is enabled only if the Order Origin is set to Intercompany Trade (Sales) or Intercompany Trade (Purchase).
The options Labor and Other are not applicable when setting up tax exceptions.

Role in Triangular Trade

For triangular trade transactions, this field contains the triangular trade role to which the exception applies. The role can be the actual supplier, the customer, or the intermediary.

If the exception applies to all roles or if triangular trade is not applicable, select Not Applicable.

VAT Based on

For Service transactions, this field contains the type of delivery to which the exception applies.

If the exception applies to all transactions, select Not Applicable.

Line Procedure

For Maintenance Sales transactions, this field contains the line procedure to which the exception applies. For details, refer to Line Procedure.

If the exception applies to all transactions, leave this field empty.

Tax Classification

The tax classification of the order.

By default, the tax classification of the order is the invoice-from or invoice-to business partner's tax classification.

Warehouse

The warehouse to which the tax exemption applies.

To set up tax exemption for purchase orders for a warehouse, specify the warehouse.

Ship-from Country

The ship-from country to which the exception applies.

If the exception applies to all countries, leave this field empty.

Ship-to Country

The ship-to country to which the exception applies.

If the exception applies to all countries, leave this field empty.

Buy-from Country

The buy-from country to which the exception applies.

If the exception applies to all countries, leave this field empty.

Sold-to Country

The sold-to country to which the exception applies.

If the exception applies to all countries, leave this field empty.

Service Location Country

For service transactions, this field contains the location to which the exception applies.

If the exception applies to all locations, leave this field empty.

Department Country

The country of the address of the sales office, purchase office, or service office.

If the exception applies to all countries, leave this field empty.

Delivery Terms

The delivery terms to which the exception applies.

If the exception applies to all transactions independent of the delivery terms, leave this field empty.

Point of Title Passage Country

If the point of title passage is located in this country, the exception applies.

If the exception applies to all transactions independent of the point of title passage, leave this field empty.

State / Province from

The state or province from which the goods are issued.

If you use a tax provider, you can define exempt tax codes and specify tax exemption certificates for purchases by country and state/province. If you do not use a tax provider, you can specify tax-exemption certificate numbers by country and tax code.

If you set up sales and use tax, you can enter a value in this field.

State / Province to

The state or province to which the goods are delivered.

If you set up sales and use tax, you can enter a value in this field.

Ship-from Economic Zone Type

The ship-from economic zone type within the country to which the exception applies.

Note:

If this field is blank, the exception applies to all the economic zone types within the country.