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Fiori apps for Tax determination of an Item/Services

Introduction of the issue/Concept :

To develop an application where system can determine the Tax Rates of an item or services based on the Material # if exists or Material group (Merchandise category) and delivery address.New Fiori Apps for Tax determination of Item or Services is required for the Business users.

Intention behind writing the document :

  • The Business users like Buyers or Purchasing managers wanted to determine Tax rate % for items or services before they raise PO to the vendors.
  • The Business users can estimate these tax amounts in their Budget at the start of the year when Budgets are getting allocated to procurement department.
  • The Business users needn’t go to PO screen for determining the taxes and he/she can find out tax Rate upfront, so they get the heads up before PO is being raised.

Solution:

  • We should develop standalone Fiori apps for determining taxation for the items/services.Third party tax tool like Vertex needs to be part of this infrastructure.
  • When business user wants to find out taxation (Tax rate) for item, he/she could enter Material # if available or he/she can enter material group for which they intend to buy.
  • Also, the user needs to enter delivery address where the items are going to deliver. It should have street address, City, Zip so the Tax jurisdiction should get determined.
  • The Fiori apps should make RFC call to Third party Tax tool (like Vertex) and should return with Tax rate (%) and Tax amount along with input details provided – Material # or Material group and Delivery address.

  • The Fiori apps can have flexibility to enter multiple SKUs/Material groups along with delivery addresses on the screen,
    • Scenario 1 – Mat 1 – Address 1
    • Scenario 2 –
      • Mat 1 – Address 1
      • Mat 1 – Address 2
      • Mat 1 – Address 3
    • Scenario 3 –
      • Mat 1 – Address 1
      • Mat 2 – Address 2
      • Mat 3 – Address 3
    • Scenario 4 –
      • Mat Grp 1 – Address 1
      • Mat Grp 2 – Address 2
      • Mat 4 – Address 3
  • The Fiori apps can be leveraged on Mobile technology so the Business users can access it from their personal mobile devices like phones/ipad/tabs etc.

Benefits/Conclusion :

  • The Business users can estimate Tax rates (%) of item which they want to procure in advance and need not go to PO screen entirely.
  • Based on tax estimates the business users can include these tax amount into their Budget. Normally tax amounts are not included in the Budget and procurement dept get short of Budget if higher tax amounts are included in the beginning.

 

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