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Sap Tax Jurisdiction Code

The document discusses jurisdiction codes, which identify taxation authorities and provide location information to determine tax amounts. Jurisdiction codes have multiple levels that represent different tax authorities like state, country, or local government. Systems can handle up to four jurisdiction levels to divide tax payments between authorities. Jurisdiction codes are used with tax codes to calculate taxes for documents and prices based on the tax rates for each authority level in the code.

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410 views1 page

Sap Tax Jurisdiction Code

The document discusses jurisdiction codes, which identify taxation authorities and provide location information to determine tax amounts. Jurisdiction codes have multiple levels that represent different tax authorities like state, country, or local government. Systems can handle up to four jurisdiction levels to divide tax payments between authorities. Jurisdiction codes are used with tax codes to calculate taxes for documents and prices based on the tax rates for each authority level in the code.

Uploaded by

Naseer Sap
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Definition

The United States consists of more than 55,000 jurisdictions. A jurisdiction is the taxation
authority that imposes the tax. Each jurisdiction is identified by a tax jurisdiction code. This code
provides the location for the transaction to be taxed.

The tax jurisdiction code is a key, which together with the tax code and other parameters,
determines the tax amount and the way in which payment of the entire tax amount is divided
between different tax authorities.

The system can handle up to four jurisdiction levels for calculation procedure TAXUSJ and six
jurisdiction levels for calculation procedure TAXUSX. Each jurisdiction level has its own
jurisdiction code.

Use
When posting a document or calculating prices, you use jurisdiction codes in combination with
tax codes to calculate tax amounts. Moreover, the jurisdiction code determines how the tax
amount is divided among the different tax authorities.

If you use the tax calculation method with jurisdictions, you have two options to calculate taxes:

1. Using calculation procedure TAXUSJ, you manually enter the required jurisdiction codes
and enter the corresponding tax percentages.
2. Using calculation procedure TAXUSX, you calculate taxes in an external system which
contains jurisdiction codes and their corresponding percentages.

Structure
A jurisdiction structure is a freely definable 15 character field with up to four levels. A level
corresponds to a tax authority such as state, country or local government.

For example, a jurisdiction code using the TAXUSJ structure has nine characters with the first
two denoting the state, the next three denoting the county or parish within the state and the last
four denoting the city.

 Jurisdiction of the state of Pennsylvania - PA0000000


 Jurisdiction of the county of Allegheny - PA0010000
 Jurisdiction of the city of Pittsburgh - PA0010100

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