Automatically Derive Tax Jurisdiction on Business Partner
Insurance companies using business partner master data in SAP often need to default tax jurisdiction code on the business partner master record in order to be able to create a contract account. Many choose to default this data in an interface or simply manually key in the data. However, there is a simple and elegant way to automatically derive for the correct tax jurisdiction code based on configuration. Follow these steps:
- In SPRO, navigate to Cross-Application Components > SAP Business Partner > Business Partner > Basic Settings > Tax Jurisdictions > Using SAP Software > Assign Tax Jurisdictions to Regions and Postal Codes > Assign Tax Jurisdictions to Regions. Here you can assign a default tax jurisdiction for each state:
You could also assign jurisdictions by postal code, which is more specific (and accurate), but you would need to keep the configuration table up to date with values from a 3rd party vendor. If you’re not calculating sales tax, then you can stick with the state defaults above.
- In SE18, create an implementation of the BAdI called ADDR_TXJCD_CHECK. In the method IF_EX_ADDR_TXJCD_CHECK~SWITCH_ADDRESS_FIELDS, paste the following code:
* GRAB THE TAX JURISDICTION CODE BASED ON STATE AND COUNTRY
IF ( NOT IM_ADRC_STRUC-COUNTRY IS INITIAL ) AND ( NOT IM_ADRC_STRUC-REGION IS INITIAL ).
SELECT SINGLE TAXJURCODE FROM COMC_TAXJUR_REG INTO CH_TAXJURCODE
WHERE COUNTRY = IM_ADRC_STRUC-COUNTRY
AND REGION = IM_ADRC_STRUC-REGION.
Activate everything and you are done. The system will now default during address creation based on the state and country values in the configuration table from step 1.