By now you have fully installed and configured your TaxFactory server, as detailed in the previous parts of this blog series:

1. BSI TaxFactory 10 Installation/Upgrade for SQL Server
   1. Gathering materials (downloads) and installing SQL Server and SAP Gateway
2. BSI TaxFactory 10 Installation for SQL Server – Part 2
   1. Loading the database and installing TaxFactory server
3. BSI TaxFactory 10 Installation for SQL Server – Part 3
   1. Installing TaxFactory client (including Apache Tomcat) and loading the Data Set

Now it’s time to configure SAP to talk to TaxFactory. Unlike the previous parts of this series, this part is not database-platform-dependent.

SAP Configuration

RFC Destination

The first step is to define the RFC Destination that SAP will use to connect to TaxFactory. This setting is not transportable, so must be done separately in each SAP ERP system in your landscape (DEV, QAS, PRD, etc). If you have setup separate TaxFactory servers for DEV, PRD, etc, then you will want to ensure that you configure each RFC Destination appropriately.

There are two ways to do this, and they are equally effective. The SAP documentation will have you go through the IMG:

• Transaction SPRO
  • SAP Reference IMG
    • Payroll
      • Payroll: USA
        • Tax
          • SAP/BSI Interface
            • Specify location of Tax Factory executable

Experienced Basis administrators will quickly recognize this as a link to transaction SM59, Configuration of RFC Connections, and that, of course, is the shortcut you can use to get here quickly. However, it is useful to remember this IMG path, as you will return to SAP/BSI Interface again shortly.

If you are upgrading from TaxFactory 9.0, you will already have an RFC Destination named BSI90-US-TAX. You cannot reuse this, but you can copy it as a template for the new destination. Alternatively, or for a new installation, expand and/or select the folder TCP/IP connections and click on the create button.

The name of your new destination must be BSI10-US-TAX. Connection Type T (TCP/IP Connection) should already be selected, but if not, select it. Enter a description of your choice (e.g. ‘BSI TaxFactory 10.0’), and set the following Technical Settings:

• Activation Type:  Start on Explicit Host
• Program:  <drive>:\<path>\tf10server.bat
• Target Host:  <taxfactory_host>.<domain>.<com/org/…>
• Save to Database as:  Hostname
• Start Type of External Program:  Default Gateway Value
• CPI-C Timeout:  Default Gateway Value
• Gateway Host:  <taxfactory_host>.<domain>.<com/org/…>
• Gateway service:  sapgw00

Save your changes and click Connection Test.

Confirm the selection of BSI Version 10.0 and click Execute.

The test will take a few seconds, and if all is working correctly you will see the following:

In the message list you may also see message code 2000 (“No company UT experience rate information for the California state UT tax was found…”). This is a normal result.

Various errors may occur at this point:

• Communication failure
  • This usually indicates that your RFC Destination is not correctly configured in SM59.
• System failure
  • This usually indicates a problem connecting to the database or data set. Ensure that your ODBC DSN on the TaxFactory server is working correctly, and ensure that your Data Set (in the TaxFactory client) has the same name as your SAP client number. See Parts 2 and 3 of this series (BSI TaxFactory 10 Installation for SQL Server – Part 2, BSI TaxFactory 10 Installation for SQL Server – Part 3)
• System hangs with no response during RPUBTCU0
  • This could be an issue with the ODBC driver on the TaxFactory server. See Part 2 of this series (BSI TaxFactory 10 Installation for SQL Server – Part 2).
• RPUBTCU0 completes without error, but no taxes are calculated
  • This usually indicates that the SAP-BSI tax code mapping is not correct in your Data Set. See Load Initial Tax Mapping in Part 3 of this series (BSI TaxFactory 10 Installation for SQL Server – Part 3).

For more details on troubleshooting RPUBTCU0,and the TaxFactory connection and functionality in general, refer to Note 1910127 (FAQ: TaxFactory 10.0 Inst./Upgrade Troubleshooting).

Create Tax Related Wage Types

This step is only relevant for a new installation; if you are upgrading from TaxFactory 9.0, even if you are doing a clean install on a new TaxFactory server, you may skip this step.

In transaction SA38, enter program RPUTTUU0 (Wage Type Update Program). Accept all the defaults on the selection screen, deselect Test Mode, and execute.

Specify Version in Customizing

Return to the IMG (transaction SPRO) and drill down into:

• Payroll
  • Payroll: USA
    • Tax
      • SAP/BSI Interface
        • Specify BSI TaxFactory version for customizing settings

For country grouping 10, option BSITF, set the Value field to ‘V10’ via the drop-down selection. There should be no need to change the start or end dates. Save your changes, which will create a transport for import into downstream systems.

The next IMG activity, Specify BSI TaxFactory version for master data and tax calculation, only needs to be configured if you intend to use different releases of TaxFactory for different groups (company codes, etc). For most organizations, this can be left blank, in which case the version from the previous activity will take effect.

The final IMG activity, Specify level of messages to be returned, only needs to be configured if you intend to restrict the types of return messages coming from TaxFactory back to the payroll engine. Read the IMG documentation on the activity to determine whether this is appropriate for your requirements.

Apply TUBs

With TaxFactory 10.0, and depending upon your HRSP level, there are now two ways to apply Tax Update Bulletins to your SAP system. The traditional way is to download transport files from http://service.sap.com/tubs and import them to your system. The procedure for this is detailed in Note 1910128, and this has not changed from prior TaxFactory releases.

For most customers, you will download five transports for the most recent TUB available (all except the Incremental transport). The transports will have titles like:

1. Tables T5UTN, T5UTT, BTXFORM, BTXAUTH and BTXTAXT
2. Table BTXTAXC
3. Table T5UTX
4. Cumulative T5UTA, T5UTB, T5UTD, T5UTR and T5UTW
5. Cumulative T5UTZ

Import them into your working client in the above order. Note that transports 4 and 5 include client-dependent table contents that can normally only be imported into Client 000, which then must usually be copied into your working client. However, if you have not customized these tables, there is an easier way. Import them directly into your working client by setting the import option Ignore Non-Permitted Table Class. This is only necessary for the last two of the five transports; the others can all be imported to your working client normally, or are client-independent.

Synchronize Payroll Tax Data

Beginning with HRSP 600.A6, 604.72, and 608.01, and if you have at least TaxFactory 10 TUB 19 imported, it becomes possible to synchronize the TUB data directly from your TaxFactory server (after applying the Regulatory Bulletins there) into your SAP tables, thus bypassing the need to download and import the above transport files. Beginning in Spring 2015 this will become the only supported mechanism for applying TUBs to your SAP system, however, for the moment it remains optional. For more information see Note 1975742. Also note that there are currently four correction Notes released for this functionality: 1984911, 1992315, 1992697, and 2009438.

Further Information, and Important Notes

The most important Notes for reference while installing, upgrading, and/or configuring TaxFactory are:

• 1905340: Installing TaxFactory 10.0
• 1910127: FAQ: TaxFactory 10.0 Installation/Upgrade Troubleshooting

Additionally, the following SCN resources are very helpful:

• BSI Tax Factory 10.0, by HEMANTH JAMITHIREDDY
  • Good information about using the new web-based TaxFactory client, and some of the more detailed custom configuration that some customers may require (overrides, etc).
• BSI Tax Factory 10.0, by Graziela Dondoni
  • Ongoing discussion thread in which Graziela announces new or upcoming changes for TaxFactory, and customers and consultants ask and answer questions. The thread is currently at 32 pages in length, which can make it difficult to search and browse, but I recommend following it (click Track in Communications) to remain up-to-date.