11/16/2017 Tax on intercompany transactions

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Tax on intercompany transactions

Hi gurus,

when we do the intercompany transactions for a free of charge invoices, SAP still incorporate Tax on the
invoice. AP didn't want to see the tax on these free of charge invoices. we are using Taxware as our third
party Tax software, any help to resolve this issue will be really appreciated. Points will be awarded.

Thank you

Priti

https://archive.sap.com/discussions/thread/739645 1/4
11/16/2017 Tax on intercompany transactions

(https://people.sap.com/priti.singh)

Priti Singh (https://people.sap.com/priti.singh)

February 14, 2008 at 20:00 PM
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6 replies

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Miroslav Kiszel (https://people.sap.com/miroslav.kiszel)replied February 12, 2008 at 19:56 PM

Hi,

You could use the tax code of 0% to post this operation.You can even delete this line after
simulation.

In this case nothing will be calculated in the tax area.

Rgrds,

Miroslav

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(https://people.sap.com/mark.chalfen)

Mark Chalfen (https://people.sap.com/mark.chalfen)replied February 12, 2008 at 20:30 PM

you need to review the tax conditions.

The inter company customer and vendor should have unique account assignments, and
the tax condition should be created so they are zero rated.

https://archive.sap.com/discussions/thread/739645 2/4
11/16/2017 Tax on intercompany transactions

please award points if useful.

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Priti Singh (https://people.sap.com/priti.singh)replied

February 12, 2008 at 22:48 PM

if you could explain little bit more in detail, with T codes, that
will be great.

Thank you

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Priti Singh (https://people.sap.com/priti.singh)replied

February 13, 2008 at 21:26 PM

Just wanted to add something, this issue doesn't happen
always , very rarely these free of charge invoices get charged,
once in 3, or 4 months.Not sure which direction to move, any
help will be really appreciated.

Thank you

Priti

priti339@Gmail.com

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Priti Singh (https://people.sap.com/priti.singh)replied

February 14, 2008 at 19:45 PM

I identified that this is happenieng only with one tax jurisdiction
code, and I know which one is that, can you tell me how do I fix
this issue?

We are using Third party software. Taxware

Thank you

https://archive.sap.com/discussions/thread/739645 3/4
11/16/2017 Tax on intercompany transactions

Edited by: Priti Singh on Feb 14, 2008 7:44 PM

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Charuni Karavati (https://people.sap.com/charuni.karavati)replied February 14, 2008 at 20:00 PM

To keep it simple, you should create a new Tax Code for Tax Code for Intercompany
Transactions (if you have anything already where the tax will be 0, you can use that also).

The T Code to use it is FTXP.

The Tax percentage rates for the 2 condition types XP1I and XP2I need to be Zero (
considering this tax code will be used by AP process) - If it's by AR process, the condition
types that need to be zero are XR1I and XR2I.

Hope that helps..

Thanks,

Nandita

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