Tax Exceptions by Country Set (tctax1101m000)

Use this session to define tax code exceptions for a specific order origin. The exceptions apply to all countries of a country set.

You can define the tax exception for one specific business partner or for all sold-to business partners and/or ship-to business partners.

In the Transaction Data group box, 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 tax country set for the transactions of which the transaction details have the specified value or values.

To distinguish between the countries of a country set

For the transactions between the countries of a single country set, you can use the Equal to fields to indicate whether the countries must differ.

To mark a country, enter a letter in the Equal to field. If another country must be different, enter a different letter in its related Equal to field. For countries that must be the same, enter the same letter.

Example

For example, country set NBD contains the countries The Netherlands, Belgium, and Germany. You model exceptions for transactions between these countries.

If you leave all the Equal to fields empty, the exceptions also apply to all the transactions within each country. However, this result is not correct because domestic tax applies to those transactions.

To indicate that the ship-from country must differ from the ship-to country, do the following:

In the Equal to field of the Ship-from Country Set field, enter A.
In the Equal to field of the Ship-to Country Set field, enter B.

As a result, the modeled exception only applies if the goods cross a country border.

If you want to add the condition that the buy-from country equals the ship-from country, enter A in the Equal to field of the Buy-from Country Set.

On the other hand, if the buy-from country must differ from both the ship-from country and the ship-to country, enter a different letter in the Equal to field of the Buy-from Country Set. For example, enter E.

Performance aspects

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

Note: In the Tax Parameters (tctax0100m000) session, you can indicate whether you define tax code exceptions separately for each country, or by tax country set.

Field Information

Financial Company Set

The financial company set to which the tax exceptions apply.

The application 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 it.

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: The options Labor and Other are not applicable when setting up tax exceptions.

Country Data

Ship-from Country Set

The ship-from country set that contains the countries to which the exception applies.

If the exception applies to all countries independent of their country set, leave this field empty.

Equal to

To mark a country, enter a random alphabetic character in this field.

To indicate that another country must be different, specify a different character in its related Equal to field. To indicate that another country must be the same, specify the same character in its related Equal to field.

Ship-to Country Set

The ship-to country set that contains the countries to which the exception applies.

If the exception applies to all countries independent of their country set, leave this field empty.

Buy-from Country Set

The buy-from country set that contains the countries to which the exception applies.

If the exception applies to all countries independent of their country set, leave this field empty.

Sold-to Country Set

The sold-to country set that contains the countries to which the exception applies.

If the exception applies to all countries independent of their country set, leave this field empty.

Service Location Country Set

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

If the exception applies to all countries independent of their country set, leave this field empty.

Department Country Set

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

If the exception applies to all countries independent of their country set, 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 Set

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

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

Ship-from Economic Zone Type

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

Note:

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