Tax and charge configuration - help.sap.com

PUBLIC2022-02

Tax and charge configurationSAP Ariba Procurement solutions

© 2

022

SAP

SE o

r an

SAP affi

liate

com

pany

. All r

ight

s re

serv

ed.

THE BEST RUN

Content

Tax and charge configuration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Taxes in SAP Ariba Procurement solutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Third-party tax calculation overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

Enhanced third-party tax calculation for invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Workflow examples of enhanced third-party tax calculation for invoices. . . . . . . . . . . . . . . . . . . . .15

Taxes and charges on requisitions and orders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26

Taxes and charges on invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

What are indirect and withholding taxes?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29

Tax calculation examples using the basic tax configuration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Before setting up your tax tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32

Topics about managing tax data in Ariba Administrator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34What are tax components? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34What are tax codes?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37What are tax code lookups and tax code lookup field maps?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39How to define tax components in Ariba Administrator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42How to define tax codes in Ariba Administrator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43How to define tax code lookup field maps in Ariba Administrator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

India GST information on requisitions and invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

How to configure India GST data for requisitions and invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

How to add state codes for supplier locations in Ariba Administrator. . . . . . . . . . . . . . . . . . . . . . 50

Tax and charge configuration data import files. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Tax information data setup requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Tax and charge data import sequence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53Import Tax Types. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Import Tax Types: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55Import Tax Type Translations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Import Tax Type Translations: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56Import Tax Type Mappings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

2 PUBLICTax and charge configuration

Content

Tax Line Type Descriptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57Import Tax Type Mappings: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Import Charge Types. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58Import Charge Types: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

Import Charge Type Translations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59Import Charge Type Translations: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

Import Tax Components. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60Import Tax Components: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60

Import Tax Component Translations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62Import Tax Component Translations: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

Import Tax Codes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63Import Tax Codes: files for Generic variants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63Import Tax Codes: files for SAP variants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65Import Tax Codes: files for PeopleSoft variants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

Import Tax Code Translations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70Import Tax Code Translations: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

Import Tax Code Lookups. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70Import Tax Code Lookups: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

Import Tax Code Lookup Field Map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72Import Tax Code Lookup Field Map: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Import Tax Code Lookup Field Map for Withholding Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73Import Tax Code Lookup Field Map for Withholding Taxes: Sample File. . . . . . . . . . . . . . . . . . . . . 74

Import Tax Rates By Tax Code Lookup. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75TaxRateLookupByTaxCode.csv: PeopleSoft Example. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75TaxRateLookupByTaxCode.csv: SAP Example. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75TaxRateLookupByTaxCode.csv: Generic Example. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

Import External Tax Calculation Providers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76Import External Tax Calculation Providers: sample files. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76

Import Company Code Tax Registration Numbers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79Import Company Code Tax Registration Numbers: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . 79

Import Supplier Tax Registration Numbers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80Import Supplier Tax Registration Numbers: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

Import States for Tax Mapping. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81Import States for Tax Mapping: Sample File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

Import Buyer Tax Registration Numbers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81Import Buyer Tax Registration Numbers: Sample files. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82

Site configuration options for charges and taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

Self-service site configuration parameters for charges and taxes. . . . . . . . . . . . . . . . . . . . . . . . . . 87Generate default withholding tax at the header level. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87Include a Tax Code option for invoice tax entry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

Tax and charge configurationContent PUBLIC 3

Process tax accrual payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88Default tax type for invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89Copy tax codes from invoice to IR document. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90Third-party tax calculation for buying and invoicing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90Enhanced third-party tax calculation for invoicing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .91Calculate tax for SAP Fieldglass invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .92Show accounting info for tax line items on invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

Ariba Network tax-related invoice rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

Configuration steps for third-party tax calculation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95Site configuration options for third-party tax calculation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101Export Document Data for External Tax Calculation web service. . . . . . . . . . . . . . . . . . . . . . . . . . . .103Custom payment posting info in exported payment requests. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108Tax info in payment requests with Enhanced third-party tax calculation for invoicing. . . . . . . . . . . . . 108Custom fields that influence tax calculation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

Restrictions and caveats for third-party tax calculation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112

Troubleshooting tips for third-party tax calculation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .113

Sample requests and responses in third-party tax calculation. . . . . . . . . . . . . . . . . . . . . . . . . . . .114


Content

Tax and charge configuration

This guide is for SAP Ariba administrators responsible for choosing how taxes are calculated and setting up taxes and charges.

Taxes and charges are supported on requisitions, purchase orders, invoices, and invoice reconciliations, depending on your site's configuration.

This guide applies to:

● SAP Ariba Buying● SAP Ariba Buying and Invoicing● SAP Ariba Invoice Management● SAP Ariba Contract Invoicing

Related guides

Invoicing data import and administration guide

Procurement data import and administration guide

Invoicing and payment process guide

Tax and charge configurationTax and charge configuration PUBLIC 5

https://help.sap.com/viewer/d905cd0bd54f4cbe986290d9ee384ec2/cloud/en-US/9ef146424a4342d6bad4f38dd389f90b.html

https://help.sap.com/viewer/99a529968234413b9efaf4f6581a32ea/cloud/en-US/291ea1c6a85e40bf89400572f517dd8b.html

https://help.sap.com/viewer/aa7701cfe9cb4157806cc0e1c515a337/cloud/en-US/9e7ea066609642689d3653ff601d553f.html

Taxes in SAP Ariba Procurement solutions

The ability to add and validate taxes and charges on documents is highly configurable in SAP Ariba Procurement solutions. Taxes and charges are supported on requisitions, purchase orders, invoices, and invoice reconciliations depending on your site's configuration.

Tax calculation is available in the following SAP Ariba Procurement solutions:

● SAP Ariba Buying● SAP Ariba Buying and Invoicing● SAP Ariba Invoice Management

Three tax configurations: basic, enhanced, and third-party

In the default configuration of SAP Ariba Buying and Invoicing and SAP Ariba Invoice Management, only taxes on invoices and invoice reconciliations using a basic tax configuration setup are available. The default configuration doesn't support adding taxes and charges on requisitions and purchase orders.

You can have your site configured to use the enhanced tax computation engine. The enhanced tax computation engine (sometimes referred to as the total landed cost feature, or TLC) lets you track the cost associated with business purchases from order generation to payment to gain better visibility into the full financial cost of doing business, your SAP Ariba Buying and Invoicing and SAP Ariba Buying solution can be configured to allow taxes, charges, and discounts on requisitions and purchase orders. If you allow taxes and charges on requisitions and purchase orders, you must configure your tax tables for the enhanced tax computation engine.

The enhanced tax computation engine provides the following features not available in the basic tax configuration:

● Calculates taxes on requisitions and invoice reconciliations using complex tax tables, such as being able to calculate tax applied on another tax or tax applied on the sum of the net amount of the line item and another tax

● Required for taxes on requisitions● Supports tax abatement and applying taxes per unit quantity of the line item● Supports withholding tax calculation● Tax codes can be classified as deductible, which excludes the tax amount from budget reservations.

You can also integrate your site with a third-party tax calculation system, giving your site access to tax data updated in real time. You can use the third-party tax calculation system to validate taxes on requisitions, invoice reconciliations, or both. Integrating with a third-party tax calculation system gives you access to tax data relevant for multiple geographies and ensures compliance with constantly changing tax laws.

NoteYour organization must have an agreement with a third-party tax provider organization to integrate with their system for management of taxes.


Taxes in SAP Ariba Procurement solutions

Basic tax configuration: taxes on invoice reconciliations

With the basic tax computation configuration, tax amounts are calculated using the following two-step approach:

1. First, the tax code is retrieved from the tax code lookup table based on the line item commodity code, ship from address (country/region and state), and ship to address (country/region and state).

2. Next, the tax rate is retrieved from the tax rate lookup by tax code table based on the tax code obtained from the tax code lookup table, the tax type of the tax line, and the plant (SAP only). The tax rate lookup by tax code table uses these values to determine the final tax amount.

Enhanced tax computation engine: taxes on requisitions and invoice reconciliations

With the enhanced tax computation engine, SAP Ariba Procurement solutions use the following three-step approach to calculate tax amounts:

1. First, the tax code is retrieved from the tax code lookup table based on the line item commodity code, ship from address (country/region and state), and ship to address (country/region and state).

2. Next, the tax engine identifies the tax components that are part of the tax codes.3. The tax components are filtered based on the purchasing units, set IDs, or plants as per the ERP system used

and the taxes are calculated based on the tax rates and tax types specified for the tax components.

Third-party tax calculation: taxes on requisitions and invoice reconciliations

With the enhanced tax computation engine, SAP Ariba Procurement solutions use the following four-step approach to calculate tax amounts:

1. First, the data on the requisition or invoice reconciliation is exported to the third-party tax calculation system.2. Next, the third-party system retrieves the tax codes based on the tax-determining fields. Examples of tax-

determining fields at the header level of a document include Company Code and the Document Date. Similarly, at the line level, tax-determining fields include Commodity Code, Ship To, Partitioned Commodity Code, Vendor, and other custom fields that are configured as tax-determining fields.

3. The tax engine in the third-party tax calculation system calculates the taxes for the line items on the document based on the tax rates and the tax types and sends the tax information to the SAP Ariba solution.

4. The SAP Ariba solution applies the taxes to the line items on the approvable document.

Related Information

Taxes and charges on requisitions and orders [page 26]Taxes and charges on invoices [page 27]

Tax and charge configurationTaxes in SAP Ariba Procurement solutions PUBLIC 7

Third-party tax calculation overview

Integrating a SAP Ariba Procurement solutions with a third-party tax provider allow buyers to add tax data on requisitions and invoice reconciliation (IR) documents using taxes calculated in the third-party engine.

Buyers can choose requisitions, IR documents, or both for requiring taxes to be be calculated in the third-party engine.

Integrating with a third-party tax calculation engine offers buyers the following advantages:

● Provides access to a wide base of country/region-specific tax data hosted in third-party engines● Reduces manual intervention and updates for tax data when geography-specific taxation rules are revised● Leverages the benefits of complex tax-calculation logic available in third-party engines● Ensures better compliance with recording and reporting of tax accounting information

The SAP Ariba solution sends the data on the document to the third-party tax calculation engine using SAP Ariba web services.

For approvable documents (requisitions or IR documents) that are not configured for tax calculation in the third-party engine, taxes are calculated by the SAP Ariba enhanced tax computation engine.

What is the tax calculation based on?

The third-party tax calculation engine performs a tax code lookup to determine the taxes based on a combination of tax-determining fields on a requisition or an invoice reconciliation document.

● Examples of tax-determining fields at the header level of a document are Company Code or Business Unit and the Document Date.


Third-party tax calculation overview

● At the line level, tax-determining fields include Commodity Code, Ship To, Partitioned Commodity Code, Vendor, and custom fields configured as tax-determining fields.

Taxes applied on requisition line items are copied to purchase orders. When a purchase order is sent to Ariba Network, the tax types in the tax code applied on the purchase order are replaced by the tax types used in Ariba Network based on the tax type mappings.

How does third-party tax calculation affect invoice reconciliation and payment?

When you use the feature Third-party tax calculation for buying and invoicing for invoice reconciliation, SAP Ariba Buying and Invoicing leverages tax information that's constantly updated in the third-party tax calculation engine. Invoices are validated against the latest jurisdictional tax data, helping ensure compliance with constantly changing tax laws. SAP Ariba Buying and Invoicing raises tax exceptions based on the results of the validation in the tax calculation engine.

If you also enable Enhanced third-party tax calculation for invoicing, you get the following enhancements to ease reconciliation and payment processes:

● Improved handling of summary tax information from suppliers reduces the number of invoice exceptions while continuing to send the ERP system the granular tax details required.

● Taxes the buyer pays directly to the government based on ship-to location or other factors are flagged and accrued. (These taxes are often referred to as direct-pay or self-assessed taxes.)

● Accrual taxes are sent to the ERP system with jurisdictional allocation details so buyers know exactly what they’re responsible for paying the government.

● Line-level credit memos are supported.● Support for sites configured as PeopleSoft and Generic variants in addition to sites integrated with SAP ERP.

Related Information

Enhanced third-party tax calculation for invoices [page 10]Configuration steps for third-party tax calculation [page 95]

Tax and charge configurationThird-party tax calculation overview PUBLIC 9

Enhanced third-party tax calculation for invoices

Buyers using third-party tax calculation for invoice taxes can enable Enhanced third-party tax calculation for invoicing. Enhancements include payment posting instructions for accruals, additional details sent to and from the tax calculation engine, and support for buyer-payable taxes.

The following sections describe system behavior and look-and-feel when Enhanced third-party tax calculation for invoicing is enabled.

Separate tax calculation engine responses for invoice reconciliation (IR) and payment posting instructions

Tax data from a third-party tax calculation engine tends to be much more detailed (granular) than the tax information on the supplier's invoice or tax calculation within SAP Ariba Buying and Invoicing. To prevent unnecessary exceptions resulting from differing tax granularity, the tax calculation engine sends summarized tax information for invoice reconciliation if that's what the invoice contains. If the invoice had granular tax details, the tax calculation engine sends breakdown amounts.

Granular tax details are always viewable on the IR document.

After the invoice IR document is approved, the tax calculation engine sends the granular tax details necessary for posting payment to the ERP system. The details include tax accrual information such as accruals for taxes the buyer pays directly to tax authorities.

Flow of tax information

The following table illustrates the difference between Enhanced third-party tax calculation for invoicing and standard Third-party tax calculation for buying and invoicing with respect to the flow of tax information.

ScenarioEnhanced third-party tax calculation for invoicing

Standard Third-party tax calculation for buying and invoicing

Supplier sends summary tax amounts At the reconciliation stage, the tax calculation engine sends a summary tax amount if that's what the supplier invoice has, while also sending the details so buyers can view the breakdown.

The tax calculation engine sends granular, jurisdiction-level tax details to be used during reconciliation, even if the supplier invoice only has a summary tax amount. This leads to numerous tax exceptions when matching the tax calculation results to the invoice.





Transaction involves buyer-payable taxes (also known as direct-pay transactions or self-assessed taxes)

The tax calculation engine checks for and flags buyer-payable tax lines (also referred to as direct-pay lines). The invoicing solution raises an exception if the supplier invoice includes a tax line that's buyer-payable.

Buyer-payable taxes are not flagged by the tax calculation engine or the SAP Ariba solution.

Supplier sends a line-item credit memo The tax calculation engine sends tax information for line-item credit memos as well as standard invoices.

The tax calculation engine doesn't calculate taxes for credit memos.

Tax from the tax calculation engine has multiple instances of the same tax type for a single tax line

Regardless of which tax calculation method you use, the reconciliation process doesn't allow multiple instances of the same tax type for a single tax line. That's because the invoicing solution uses Tax Type as a unique ID when matching tax types.

With Enhanced third-party tax calculation for invoicing, the tax calculation engine consolidates multiple instances of the same tax type into a single instance: District Tax 3.5%.

The tax calculation engine sends tax breakdowns like this: Sales Tax 7%, District Tax 3%, District Tax .5%.

There are tax accruals When the tax calculation engine sends tax payment posting instructions, all tax accruals are included. Accrued tax amounts are distributed among multiple tax authorities as appropriate.

Invoice reconciliation (IR) documents are exported without payment posting and accrual information.

Tax and charge configurationEnhanced third-party tax calculation for invoices PUBLIC 11



Tax calculation engine calculates reverse taxes

Reverse taxes are when the tax calculation engine sends two exact tax lines, one with a positive number and one with a negative number.

With Enhanced third-party tax calculation for invoicing, the tax calculation engine sends the total (0) but also stores the individual values.

For example:

The value-added tax (VAT) on a transaction is 10.

The government gives a tax relief of 10 on the transaction.

The tax calculation engine sends a VAT of 0 in response to the tax calculation request and stores the tax breakdown of 10 and -10 in the TaxComponents element of the response. The tax calculation engine can send the posting instructions (for 10 and -10) in response to the request for payment posting instructions.

The tax calculation engine sends the two exact tax lines, one with a positive number and one with a negative number.

User interface differences when Enhanced third-party tax calculation for invoicing is enabled

When users view a line-level tax exception on an IR document, there are links for viewing the tax breakdown of the amount calculated by the tax calculation engine.

● For all line-level tax exceptions except Buyer Payable Tax, the Expected Tax Amount field has a link that shows the details in a popup.

● For line-level Buyer Payable Tax exceptions, there is a field called Tax Accrual Amount. This field shows tax amount to be accrued by the buyer and has a link to the details.



● The View Details link displays the tax breakdown in the Tax Info Details section.

The following figure includes an example of a tax breakdown.

In the tax breakdown table:

● The Tax component column shows tax components sent by the third-party tax calculation engine.● The Description column contains a formula string from the tax calculation engine. Descriptions of more than

1000 characters are truncated.

When header-level taxes are prorated among material lines, the Prorated Header Tax Info table shows the tax amounts for each line. The table includes a Buyer Payable Tax column to indicate items with a buyer-payable tax. Rows with that option checked are excluded from proration.

Tax and charge configurationEnhanced third-party tax calculation for invoices PUBLIC 13

Awaiting Tax Engine Confirmation invoice status

There is a transitional status for invoices, Awaiting Tax Engine Confirmation. This status is used after SAP Ariba Buying and Invoicing sends approved IR tax data to the tax calculation engine and is awaiting the payment posting instructions from the tax calculation engine. The only time you're likely to see this status is if an error occurs in the response from the tax calculation engine. The invoice status remains Awaiting Tax Engine Confirmation until the tax calculation response is received successfully.

Payment export task for PeopleSoft and Generic variants

The tax calculation engine sends tax accrual information to SAP Ariba Buying and Invoicing. For PeopleSoft and Generic variants, use the task Export Payment Requests with Advance Payments and Taxes, which exports all tax-related information in addition to the details of advance payments and funds management accounting information (if enabled).

NoteUse this task only if your site is configured to export approved invoices for payment directly from SAP Ariba Buying and Invoicing to the external ERP system in CSV file format, and not from Ariba Network.

Related Information

Configuration steps for third-party tax calculation [page 95]Workflow examples of enhanced third-party tax calculation for invoices [page 15]



Workflow examples of enhanced third-party tax calculation for invoices

The following image and steps describe the high-level workflow of the tax calculation process for invoices on sites using Enhanced third-party tax calculation for invoicing (Application.Procure.EnhancedTaxCalculationInExternalSystems).

For each invoice, the third-party tax calculation engine:

1. Calculates the taxes for the invoice line items when the invoice is first submitted. The tax calculation engine calculates a summary tax amount or a breakdown of several tax amounts, depending on the tax details on the original invoice.For example, a supplier invoice might include one sales tax amount of 10 (a summary of all sales tax amounts) or a breakdown of taxes, such as a province sales tax of 5, district tax of 3, and city tax of 2.

2. Sends jurisdictional tax details in the form of posting instructions. This provides SAP Ariba Buying and Invoicing with all the details to send to the ERP system. This happens after the IR document is approved.

Tax and charge configurationWorkflow examples of enhanced third-party tax calculation for invoices PUBLIC 15

Information flow for line-level tax calculation for invoices

Figure 1:

1. An invoice is created in one of the following ways:○ A supplier creates an invoice for a purchase order on Ariba Network.○ An invoice agent creates an invoice in SAP Ariba Buying and Invoicing.

2. SAP Ariba Buying and Invoicing performs the following actions:○ Creates an invoice reconciliation (IR) document.



○ Exports the invoice data to the tax calculation engine to validate the tax information on the invoice.3. The tax calculation engine performs the following actions:

○ Checks whether the tax info received is at a summary level or is a granular breakdown of taxes.○ Calculates the taxes and sends the information to SAP Ariba Buying and Invoicing.

The tax amount sent by the tax calculation engine reflects the granularity on the original supplier invoice:○ If the tax calculation engine received a summary tax amount, it returns a summary tax amount, along

with details of the tax breakdown for viewing.○ If the tax calculation engine received a granular breakdown of tax amounts, it returns a granular

breakdown.4. SAP Ariba Buying and Invoicing performs the following tasks:

○ Receives the tax calculation from the tax calculation engine.○ Applies the expected tax information to the line items.○ Raises exceptions as needed based on tax information received from the tax calculation engine.○ Depending on your configuration, adds a member of the Tax Manager or the Tax Editor group to handle

tax exceptions.5. The tax manager takes the appropriate action to resolve tax-related exceptions.6. After all approvers approve the IR document, SAP Ariba Buying and Invoicing exports the data on the IR

document to the tax calculation engine, requesting payment posting instructions.7. The tax calculation engine sends payment posting instructions to SAP Ariba Buying and Invoicing, with full

jurisdictional tax details.8. SAP Ariba Buying and Invoicing:

○ Receives the payment posting instructions from the tax calculation engine.○ Creates a payment request for the reconciled invoice, including the full jurisdictional tax details and accrual

information.○ Sends the payment request to the ERP system for processing of payments.

Example: supplier sends summary tax amount

1. SAP Ariba Buying and Invoicing receives an invoice and sends the tax information to the tax calculation engine.

Line 1 amount: 100

Line 1 sales tax amount (summary): 10

2. The tax calculation engine calculates the taxes and returns a summary tax amount and the tax breakdown.3. SAP Ariba Buying and Invoicing receives the calculated taxes and raises tax exceptions as appropriate.

Original tax amountTax summary from tax calculation engine Tax breakdown components Exception



State sales tax: 8 Under tax variance

County sales tax: 2

City sales tax: 1

4. The tax manager resolves the exceptions, the IR document is fully approved, and SAP Ariba Buying and Invoicing sends the final IR information to the tax calculation engine.


5. The tax calculation engine processes the IR information and sends payment posting information.If the tax manager resolved the under tax variance exception by disputing the tax amount on the invoice:

Tax exception information Tax manager action Tax payment info

Invoice tax amount: 10 Accept expected tax amount Original amount: 10

Expected tax amount: 11 Final amount: 11

State sales tax: 8

County sales tax: 2

City sales tax: 1

Accrued and paid to appropriate tax authority: 1

If the tax manager resolved the under tax variance exception by accepting the supplier tax amount:


Invoice tax amount: 10 Accept invoice tax amount Original amount: 10

Expected tax amount: 11 Final amount: 10

Sales tax: 10

Example: supplier sends tax breakdown

1. SAP Ariba Buying and Invoicing receives an invoice and sends the tax information to the tax calculation engine.

Line 1 amount: 100

Line 1 state sales tax amount: 10

Line 1 city sales tax amount: 1

2. The tax calculation engine calculates the taxes and returns the resulting tax breakdown.3. SAP Ariba Buying and Invoicing receives the calculated taxes and raises tax exceptions as appropriate.

Original tax for line 1Tax amounts from tax calculation engine Exception

State sales tax: 10 State sales tax: 8 Over tax variance

City sales tax: 1 City sales tax: 1 None

County sales tax: 2 Under tax variance

4. The tax manager resolves any exceptions, the IR document is fully approved, and SAP Ariba Buying and Invoicing sends the final IR information to the tax calculation engine.

5. The tax calculation engine processes the IR information and sends payment posting information.



Suppose the tax manager resolved the under tax variance exception by disputing the tax amount on the invoice:


Over tax variance for state sales tax

State sales tax amount: 10

Expected tax amount: 8

Accept expected tax amount Original state sales tax amount: 10

Final state sales tax amount: 8

Under tax variance for county sales tax

County sales tax amount: 0


Accept expected tax amount Original county tax amount: 0

Final county sales tax amount: 2

Accrued, to be paid to county tax authority: 2

No exception for city sales tax None Original city sales tax amount: 1

Final city sales tax amount: 1

Taxes the buyer pays directly to tax authorities

SAP Ariba uses the term buyer-payable tax for item taxes that the buyer pays directly to tax authorities. Depending on the situation, buyer-payable taxes can also be referred to as direct-pay taxes, self-assessed taxes, or use taxes. Buyers accrue buyer-payable taxes.

Buyers and suppliers typically have an understanding of the situations in which an item tax is a buyer-payable tax. Often, the buyer's ship-to location determines this. Suppliers don't usually invoice for taxes the buyer pays directly because buyers don't owe suppliers for them.

When calculating taxes for IR documents, the tax calculation engine determines whether a tax is a buyer-payable tax. Here's the workflow:

1. SAP Ariba Buying and Invoicing sends tax information for an invoice to the tax calculation engine.2. When calculating taxes, the tax calculation engine checks whether any of the taxes are buyer payable and

marks them as such.3. When SAP Ariba Buying and Invoicing receives calculated taxes that include buyer-payable taxes:

○ If a tax line on the supplier's invoice comes back from the tax calculation engine as buyer payable, a Buyer Payable Tax exception is raised against the tax line.The expected tax amount is 0 because buyers don't pay suppliers for a tax that's buyer-payable.

○ Buyer-payable tax details are stored on the IR document.4. To resolve Buyer Payable Tax exceptions, the tax manager disputes the tax line.

Disputing a tax line means accepting the tax calculation engine's tax amount, 0, by choosing the Accept Expected option. Buyer Payable Tax exceptions don't include an option to accept the amount on the supplier invoice.

5. When SAP Ariba Buying and Invoicing sends payment information to the ERP system, buyer-payable tax information is included as an accrual, with jurisdictional allocation details.


Tax on invoiceInfo from tax calculation engine

Result in SAP Ariba Buying and Invoicing Resolution

Line 1 tax amount: 10 Line 1 tax amount: 10

Buyer-payable tax? Yes

Buyer Payable Tax exception raised against line.

Expected tax: 0

Tax manager accepts expected tax amount.

Accrued and paid to appropriate tax authority: 10

NoteRequisitions don't include information specific to buyer-payable taxes, such as use tax or direct-pay location.

Line-item credit memos

● The workflow for taxes on line-item credit memos is the same as the workflow for taxes on standard invoices.● The third-party tax calculation engine sends negative values for credits. Likewise, accrual values are negative.

Header-level tax calculation in SAP variants

In sites integrated with SAP ERP, if the invoice has header-level taxes, each header tax line is split and prorated among the material lines and exported as multiple lines in the export of tax payment information. For example, if the invoice has 2 material lines, header taxes are split proportionally between the two lines based on line amount.

NoteHeader-level taxes are not prorated to line items with buyer-payable taxes. For example, if there are 5 material lines, and 2 lines have buyer-payable taxes, the header tax is prorated to the 3 lines that don't have buyer-payable taxes. If all line items have buyer-payable tax, a Buyer Payable Tax exception is raised for the header tax.

With enhanced third-party tax calculation for invoices:

1. SAP Ariba Buying and Invoicing prorates header taxes before sending the supplier tax information to the tax calculation engine. A proration algorithm in SAP Ariba Buying and Invoicing determines how the header tax is distributed among material lines.For example:

Supplier invoice with 2 material lines and header taxHeader tax prorated to lines, sent to tax calculation engine

Material line 1 amount: 100


Header-level sales tax amount: 15

Material line 1 sales tax amount: 10

Material line 2 sales tax amount: 5

2. The tax calculation engine returns tax calculation results for each line.



3. SAP Ariba Buying and Invoicing validates the amounts and raises header-level exceptions as appropriate, based on the totals of the lines. (When there's a header tax, there are no line-level exceptions, because the supplier didn't send line-level taxes.)Examples of tax calculation responses and the resulting invoice exceptions:

Supplier invoiceSample tax calculation responses for prorated header tax Exceptions



Header-level sales tax amount: 15

Sales tax for material line 1: 10


None



Header-level under tax variance

Invoice tax amount: 15




Header-level over tax variance

Invoice tax amount: 15


4. A tax manager resolves the header tax exceptions. They can view the prorated header tax details on the IR document under Header Taxes, Charges, and Discounts when the IR is in edit mode.

Tax calculation response and resulting exception Tax manager action Final tax amount on IR document



Header-level exception: Under tax variance (Tax calculation engine total = 18, supplier invoice tax = 15)

Disputes supplier header tax by choosing the Accept Expected option

Header tax: 18

Proration info:○ Sales tax for material line 1: 12○ Sales tax for material line 2: 6

Accepts supplier header tax Header tax: 15

Proration info:○ Sales tax for material line 1: 10○ Sales tax for material line 2: 5

Accrued taxes

The third-party tax calculation engine uses a hierarchy of jurisdictions to determine how your organization pays tax authorities for accrued taxes.

● Payment posting instructions sent by the tax calculation engine include tax accruals.● When an under tax variance exception arises, if the tax manager accepts the expected amount (that is, the tax

calculation amount), SAP Ariba Buying and Invoicing accrues the difference between the tax the supplier charged on the invoice and the tax calculated by the tax calculation engine.


NoteThis point reflects the behavior on most sites. The behavior depends on the parameters Application.Invoicing.TaxAccrualExceptions and Application.Invoicing.ProcessPaymentsForTaxAccrual, which affect accrued tax payments. For information about these parameters, see Invoice exception types for accrued tax payments and Process tax accrual payments [page 88].

● Buyer-payable taxes are always accrued because they're not paid to the supplier.● When the reconciled IR document has a tax accrual (due to a disputed under tax variance exception, for

example), payment information exported to the ERP system includes information for paying the appropriate tax authorities.

● With tax accruals, one tax line on the supplier's invoice can be split into multiple tax payment lines based on tax jurisdiction and other factors. For example, one summary sales tax on the supplier's invoice might be split into separate tax payment lines for state sales tax, district sales tax, and city sales tax.

● Tax authority payment information can be more granular than the accrual amount. For example, an accrual amount of 5 can be split into multiple tax authorities such as a state sales tax of 3 and a city sales tax of 2.The tax amount accrued in this scenario might not be accurate. The tax calculation engine calculated the tax from the supplier's perspective (seller user tax), but the accrual is being paid from the buyer's perspective (consumer use tax). Calculation for seller and consumer use tax might not be the same. This means there might be a discrepancy between the tax amount displayed during reconciliation and the tax amount sent to the ERP system. For example:

Tax on supplier invoice 10

Tax from tax calculation engine (calculated as seller user tax)

12

Exception Under tax variance

Tax manager action Accept expected amount, 12

Tax accrual amount on the IR document 2

Tax accrual from tax calculation engine (calculated as consumer use tax)

1.80

Tax accrual sent to ERP system 1.80

When value-added tax (VAT) lines on the invoice differ from the calculation

For Value Added Tax (VAT) lines, as with other tax lines, it's possible that the tax calculation engine will return a different tax amount from what's on the invoice. In the interest of VAT compliance, your organization must decide how the Accounts Payable (AP) department will handle this situation. Technically, the person reconciling the invoice has three choices: Reject the invoice, accept (pay) the amount on the invoice, or accept (pay) the calculated amount. There is no way to manually enter an amount, such as 0. In most VAT counties, short-paying a supplier is not allowed. Therefore, we recommend instructing AP to either accept (pay) the amount on the invoice; or reject the invoice and resolve the difference through a credit, debit, or a corrected invoice.

Reverse-charge VAT is a negative amount. The external tax calculation engine marks reverse-charge VAT as a buyer-payable tax. In countries/regions where the invoice must reflect what happens in terms of payment, for reverse-charge VAT, the tax rate on the invoice must be 0% to show that the buyer doesn't pay the supplier



https://help.sap.com/viewer/7e1b0896fbe64bc8b5567268d02e5ce7/cloud/en-US/dc75d98788924a8baa7a4c7d6a636719.html

anything for that tax. If the supplier's invoice includes a tax line that turns out to be a reverse-charge VAT, the buyer either rejects or accepts the invoice.

Following is an example flow when an invoice contains a tax line that turns out to be a reverse-charge VAT:

1. Suppose the supplier's invoice includes a VAT of 8%.2. The external tax calculation engine marks the tax line as a buyer-payable tax.3. In SAP Ariba Buying and Invoicing, a Buyer Payable Tax exception is raised on the line.

The expected tax amount is 0 because buyers don't pay suppliers for a tax that's buyer-payable.4. The buyer either accepts the tax on the invoice or rejects the invoice.5. If the buyer accepted the tax on the invoice:

○ The posting call response includes a VAT of 8% and a VAT of -8%. The ACCOUNT_INSTRUCTION field carries the payment information used for reverse-charge VAT in the ERP system.

○ The supplier can issue a credit memo to rectify the discrepancy.

Additional tax calculation examples

Tax on supplier invoiceTax from tax calculation engine (examples)

Result in SAP Ariba Buying and Invoicing

State tax, county tax, city tax State tax, county tax

(city tax is not applicable for the item, according to the tax calculation engine)

Over Tax Variance invoice exception for city tax

State tax, county tax, city tax State tax and county tax with non-zero values

City tax with 0 amount

Over Tax Variance invoice exception for city tax.

The other taxes might have an exception if there is a discrepancy between supplier tax and tax calculation engine tax.

One line with sales tax of 100 GST of 90, PST of 10

(2 ExternalTaxItems in the tax calculation response instead of both GST and PST under a single sales tax)

Tax Calculation Failed invoice exception

State tax, county tax, city tax State tax, county tax, city tax, municipality tax

Under Tax Variance invoice exception due to municipality tax

When tax codes differ between the IR document and the posting instructions

Depending on your tax configuration, the tax code in the posting instructions might differ from the tax code on the IR document. For example:

● The tax code on the IR document be a placeholder tax code that simply reflects whether the tax is paid to the supplier, accrued, or a combination of the two.The default tax code used depends on whether the buyer accepts the tax on the invoice or accepts the calculated (expected) tax.


● The posting instructions contain the actual tax codes used for payment. The tax code in the posting instructions is exported in payment requests.

This section includes two examples that use the following default tax codes for the IR tax calculation.

Table 1: Example set of default tax codes for IR tax calculation

Tax payment Tax code

Taxes paid to vendor I1 Taxes paid to the supplier as part of the invoice

Buyer accrued taxes U1 Taxes the buyer fully accrues

Partially accrued taxes P1 Taxes paid on this line item are a combination of taxes paid to the vendor and taxes accrued by the buyer

Table 2: Example 1: supplier invoice tax amount = 10, tax calculation amount = 12

IR tax calculation call Buyer's decision Posting call

The tax engine calculates the expected tax for the invoice, which in this example is 12.

The buyer decides between paying the invoice amount or the tax engine amount.

● Option 1: accept the invoice amount○ The buyer decides to pay the 10

on the invoice.○ All of this tax is paid to the sup

plier. Nothing is accrued.○ Default tax code: I1.

● Option 2: accept the expected amount from the tax engine○ The buyer pays the 10 on the in

voice.○ The buyer expects to accrue

the remaining 2.○ Some of this tax is paid to the

supplier and some is accrued by the buyer.

○ Default tax code: P1.

After the buyer decides how to respond to the IR tax calculation, and the IR is approved, the posting call gets the actual tax code.



Table 3: Example 2: supplier invoice tax amount = 0, tax calculation amount = 10

IR tax calculation call Buyer's decision Posting call

The tax engine calculates the expected tax for the invoice, which in this example is 10.

The buyer decides between paying the invoice amount or the tax engine amount.

● Option 1: accept the invoice amount○ The buyer decides to pay the 0

on the invoice.○ No tax is accrued.○ Default tax code: I1.

● Option 2: accept the expected amount from the tax engine○ The buyer expects 10 to be ac

crued.○ All of this tax is accrued. No tax

is paid to the supplier.○ Default tax code: U1.

After the buyer decides how to respond to the IR tax calculation, and the IR is approved, the posting call gets the actual tax code.


Taxes and charges on requisitions and orders

The way taxes and charges are added and processed on requisitions and orders

Taxes and charges on requisitions

Depending on the tax computation engine, taxes are applied on requisitions in the following ways:

● Enhanced tax computation engine: taxes get automatically applied on requisition line based on the tax code lookup tables and tax components you define. Users can also manually apply or edit these tax codes if they are a member of the Tax Editor or Tax Manager groups. Only one indirect tax code can be applied on a requisition line item.

● Third-party tax calculation: if requesters are members of the Tax Editor or Tax Manager groups, they can can manually apply tax codes on the line items while creating requisitions using the tax codes defined in the SAP Ariba solution. However, the SAP Ariba solution exports the data on requisitions to the third-party system to calculate taxes for the line items in the following cases:○ Tax managers or tax editors while creating requisitions or editing requisitions initiate tax calculation by

clicking the Update Taxes button○ Users submit requisitions for approval○ The last approver in the approval flow of a requisition approves the requisition

Based on the tax calculation response received from the third-party system, taxes get automatically applied on requisition line items, overriding any previously entered tax codes. Unlike the enhanced tax computation engine, tax editors or tax managers cannot edit the externally calculated taxes on requisitions.

Users can manually add charges to line items while creating requisitions.

Taxes and charges on purchase orders

Taxes applied on requisition line items get copied to purchase order line items. When a purchase order is sent to Ariba Network, the tax types in the tax code applied on the purchase order are replaced by the tax types used in Ariba Network based on the tax type mappings you have defined.

Similarly, the charge types applied on the purchase order are replaced by the charge types used in Ariba Network based on the charge type mappings. Discounts applied on purchase order line items are sent to Ariba Network as allowances with the type discount.

In SAP Ariba Invoice Management, if ERP copy orders include taxes, charges, or discounts, SAP Ariba Invoice Management ignores the tax, charge, and discount data. ERP copy orders are orders generated in the external ERP and sent through Ariba Network to your SAP Ariba invoicing solution.


Taxes and charges on requisitions and orders

Taxes and charges on invoices

The way taxes and charges are added and processed on invoices depends on several factors: site configuration, Ariba Network business rules, and how the invoice is created.

Taxes and charges on invoices created by suppliers on Ariba Network

When suppliers create a PO-based invoice in Ariba Network, an Ariba Network business rule you set in your Ariba Network buyer account controls if tax information is copied from the order to the invoice, or if suppliers must manually add taxes to the invoice.

Charges on a purchase order are copied to the invoice and suppliers can edit these charges if the required business rules are enabled in Ariba Network. Charges from ERP copy orders aren't carried over to invoices or service sheets. Charges that the supplier adds to the invoice don't show up in SAP Ariba Buying and Invoicing.

When suppliers add or modify tax information on the invoices on Ariba Network, they select the tax category when entering taxes. The value of the tax category gets replaced in your SAP Ariba invoicing solution by the tax type mapping you have defined. If the invoice contains an unmapped tax type, the default tax type configured for your site is used.

Likewise, charge types on invoices from Ariba Network are mapped to the charge types you have defined for your SAP Ariba invoicing solution. If the invoice contains an unmapped charge type, the default charge type Other Charges is used with the Ariba Network charge type appended to it. For example, if a supplier added a charge type Priority Delivery to the invoice in Ariba Network and this charge type is not mapped to any charge type in your SAP Ariba invoicing solution, then the charge type for the charge is displayed as Other Charges - Priority Delivery.

Taxes and charges on invoices created in SAP Ariba Invoice Management or SAP Ariba Buying and Invoicing

By default, when invoice entry users create PO-based invoices based on paper invoices they receive from suppliers, tax and charge information from the purchase order is not copied to the invoice. Invoice entry users enter taxes and charges at the header or line level of the invoice. They use tax types, tax codes, and charge types that reflect the information on the supplier's paper invoice. SAP Ariba can configure SAP Ariba Buying and Invoicing sites to copy tax, discount, and charge type information from the purchase order by enabling feature SINV-6818: PO-based defaulting of taxes, charges, and discounts on manual invoices.

Taxes and charges on auto-generated invoices (evaluated receipt settlement)

When the evaluated receipt settlement feature is enabled, invoices are auto-generated for line items flagged for evaluated when a goods receipt has been fully approved. Taxes, charges, and discount information is copied from the purchase order to the invoice.

Tax and charge configurationTaxes and charges on invoices PUBLIC 27

Taxes on invoice reconciliation (IR) documents

The invoice reconciliation process uses tax code lookup tables to calculate the expected tax amount.

Tax codes are auto-generated for invoice line items on the IR document based on the tax code lookup tables you have defined to calculate the expected tax amount. If the tax information on the original invoice differs from the expected tax information per your configuration, your SAP Ariba invoicing solution generates tax invoice exceptions that will require a tax manager's attention.

Indirect taxes are always auto-generated at the line-item level in the IR document. Header-level tax is calculated on each taxable line item and then aggregated to give a total header-level tax amount. This amount is applied to the default line item and is used during reconciliation if header-level reconciliation is required.

Withholding taxes are auto-generated at either the header level or the line-item level depending if the original invoice included withholding taxes on the header or line item level. If an invoice with eligible line items does not have withholding taxes applied, then during invoice reconciliation withholding taxes are applied by default on the line level. You can change your site configuration to generate withholding taxes on header level if required.

To calculate taxes on SAP Fieldglass invoices, the Calculate tax for SAP Fieldglass invoices (Application.Invoicing.CalculateTaxForFieldglassInvoices) parameter must be set to Yes so that applicable tax codes are added to IR documents.


Taxes and charges on invoices

What are indirect and withholding taxes?

SAP Ariba Procurement solutions support two tax categories: indirect tax and withholding tax.

● Indirect taxes include taxes levied on services and goods. These taxes are added to the total invoice amount and paid to the supplier, who in turn pays them to the government.Users can apply indirect taxes on requisitions, invoices, and invoice reconciliation documents.

● Withholding taxes are not included in the invoice amount payable to the supplier. Buyers are responsible to pay withholding taxes directly to the government.Withholding taxes can only be applied on invoices and invoice reconciliation documents.

Indirect and withholding tax types, tax components, and tax codes

When importing your tax types, you define if a tax type is an indirect tax or withholding tax.

Tax components can be indirect tax components or withholding tax components. Withholding tax components are mapped to withholding tax types while indirect tax components are mapped to indirect tax types. Withholding tax components have a negative tax rate.

Tax codes can be indirect tax codes or withholding tax codes. You can assign only withholding tax components to a withholding tax code and only indirect tax components to an indirect tax code. In addition, a tax code cannot have more than one tax component of the same tax type effective at the same time.

Tax and charge configurationWhat are indirect and withholding taxes? PUBLIC 29

Tax calculation examples using the basic tax configuration

The tax calculation examples use sample tax code and tax rate lookup tables to illustrate how tax is calculated for line items.

A line item’s commodity code and rank are used to determine the initial tax code, and then the tax rate is determined in the tax rate lookup table using the tax code and rank.

NoteThis process does not apply to sites using the enhanced tax computation engine or a third-party tax calculation system.

Multiple tax rates and types

When using the basic tax computation engine, multiple tax rates can be attached to one tax code if the invoice line item references multiple tax types. Each tax rate has an associated rank, which is used to determine which tax rate to use when a line item matches more than one tax rate. The tax rate with the highest rank (lowest number) is used.

Wildcard (partial) matching

When using the basic tax computation engine, you can configure entries in the tax code table to specify which tax codes and rates allow wildcard or partial matching by leaving values empty (null). You can also configure a default rate when no other matches apply. The values are case-sensitive. For example, a state value of “CA” does not match “Ca”.

The following table shows examples of tax code table entries:

Rank CommodityCodeShipFromCountry

ShipFromState

ShipToCountry

ShipToState TaxCode

0 OFFICE:CALENDAR US MI US CA TC1

0 EQUIP:PROTO US MI US California TC2

0 MFG:CABLE US Washington US CA TC3

1 MFG:CABLE GB GB TC4

1 OFFICE:CALENDAR Canada Alberta Canada Ontario TC5

1 OFFICE:CALENDAR GB US CA TC6

2 OFFICE:CALENDAR GB Canada TC7


Tax calculation examples using the basic tax configuration

Rank CommodityCodeShipFromCountry

ShipFromState

ShipToCountry

ShipToState TaxCode

2 DE TC8

2 CA TC9

3 TC10

The next table shows examples of tax rate lookup by tax code table entries:

Rank Tax Code Tax Type Tax Rate Effective Date

0 TC1 SalesTax 0.10 Sun Jan 01 00:00:00 GMT+05:30 2003

0 TC1 SalesTax 0.15 Wed Mar 01 00:00:00 GMT+05:30 2004



0 TC4 VATTax 0.175 Wed Mar 01 00:00:00 GMT+05:30 2004

0 TC5 GST 0.07 Wed Mar 01 00:00:00 GMT+05:30 2004

0 TC5 PST 0.08 Wed Mar 01 00:00:00 GMT+05:30 2004






Using the previous tax tables, the following situations occur:

● Partial matching: A line item with commodity code OFFICE:CALENDAR and shipped to DE matches to tax code TC8 in the tax code lookup table and tax rate 0.195 in the tax rate lookup by tax code table. This line item is a partial match because only the ShipToCountry value is matched.

● Multiple row matching: A line item with commodity code OFFICE:CALENDAR and shipped from GB matches rows with tax code TC6 and TC7 in the tax code lookup table. The row with the highest rank (lowest number) is used. Therefore, from the tax rate lookup by tax code table, the tax rate 0.08 is used.

● Multiple tax types: A line item with commodity code OFFICE:CALENDAR, shipped to Canada, and shipped from Canada matches tax code TC5 in the tax code lookup table. In the tax rate lookup by tax code table, TC5 with tax type GST uses the tax rate 0.07. Similarly, for the same line item, in the tax rate lookup by tax code table, TC5 with tax type PST uses the tax rate 0.08.

● Use of effective date: A line item with commodity code OFFICE:CALENDAR, shipped from US (state MI), and shipped to US (state CA) matches one row in the tax code lookup table (TC1) and two rows in the tax rate lookup by tax code table (0.10 and 0.15). The row with the later effective date is used (0.15).

● Default rate: The default rate in this example is 0.0825 (TC10).

Related Information

Taxes in SAP Ariba Procurement solutions [page 6]

Tax and charge configurationTax calculation examples using the basic tax configuration PUBLIC 31

Before setting up your tax tables

Before you start defining your tax configuration, make sure you understand how tax data flows across SAP Ariba Procurement solutions, external systems, and Ariba Network, and any configuration options that impact the tax configuration.

Members of the Customer Administrator and Tax Manager groups can import tax and charge data using the Tax Manager and Site Manager workspaces in Ariba Administrator. Tax components, tax codes, and tax code lookup field maps can also be created and managed using the user interface.

Decide which tax configuration to use

If your business processes don't require taxes and charges on requisitions and purchase orders and requires simple tax tables for invoices and invoice reconciliations, you can use the basic tax configuration.

If you require taxes and charges using complex tax tables for requisitions, purchase orders, invoices, and invoice reconciliations, you can use the enhanced tax configuration or choose to integrate with third-party tax providers to calculate taxes in their systems. Compared to the enhanced tax configuration engine, integrating with third-party tax providers offers the following advantages:

● Provides access to a wide base of country/region-specific tax data hosted in third-party systems● Reduces manual intervention and updates for tax data when geography-specific taxation rules are revised● Leverages the benefits of complex tax-calculation logic available in third-party systems● Ensures better compliance with recording and reporting of tax accounting information

If you use the evaluated receipt settlement feature in SAP Ariba Buying and Invoicing, make sure you allow taxes and charges on requisitions and purchase orders. SAP Ariba Buying and Invoicing uses the tax information on purchase orders when it auto-creates the invoice after the goods receipt has been approved.

Integration with ERP Systems and third-party tax providers

When approvable documents are sent to an ERP system or a third-party system, tax amounts might have to be recalculated externally in the ERP system or third-party system using the tax codes in the exported documents. To ensure this, the tax codes defined in SAP Ariba Procurement solutions must match the tax codes defined in your external systems. In most cases, the ERP system will be the source of truth when importing tax codes for the enhanced tax computation engine and the third-party system for external tax calculation.

Integration with Ariba Network

For seamless exchange of purchase orders and invoices containing taxes and charges between Ariba Network and SAP Ariba Procurement solutions, the tax types and charge types defined in SAP Ariba Procurement solutions


Before setting up your tax tables

must be mapped to the tax types and charge types defined in Ariba Network. Any unmapped charge or tax types are mapped to a default value. The tax type default value is configurable.

Business rules in Ariba Network help buyers and suppliers avoid errors during data entry or submittal of documents. Rules can prevent suppliers from adding certain information, make it optional, or require them to provide certain information. Review your Ariba Network business rules that control tax and charge data entry to ensure they support your business requirements.

Review your site's configuration settings

A number of configuration parameters set the default behavior for tax and charges handling. Most of the configuration parameters are not available for customer self-service. Contact SAP Ariba Customer Support if you need to modify your site's tax and charge-related configuration parameters.

Related Information

Site configuration options for charges and taxes [page 84]

Tax and charge configurationBefore setting up your tax tables PUBLIC 33

Topics about managing tax data in Ariba Administrator

You can manage tax and charge tables for SAP Ariba Procurement solutions using the Tax Manager and Site Manager workspaces in Ariba Administrator. The data you manage depends on whether your site uses basic, enhanced, or third-party tax computation.

What are tax components? [page 34]

What are tax codes? [page 37]

What are tax code lookups and tax code lookup field maps? [page 39]

How to define tax components in Ariba Administrator [page 42]

How to define tax codes in Ariba Administrator [page 43]

How to define tax code lookup field maps in Ariba Administrator [page 44]

Related Information

Before setting up your tax tables [page 32]

What are tax components? Tax components are used by the enhanced tax computation engine. They are individual components of tax codes that are applied on line items. Examples of tax components include VAT, service tax, and sales tax.

You can create tax components using the user interface or you can import them using CSV files.

Each tax component has a specific tax rate and can be defined for a specific country/region and state. If a country/region has different tax rates for a tax type, then you need to create different tax components, one for each tax rate. For example, if you have different tax rates for VAT, say 10%, 14%, 18%, 20%, and 25%, you need to create five different tax components for these. Also, you need to create different tax components for each country/region.

The following table describes the attributes of a tax component. These are displayed as fields on the Create Tax Component page.

Field Description

Name The user-specified name of the tax component. Multiple tax components can have the same name but it is advised to provide a uniquely identifiable name to every tax component.



Field Description

Description Information about the tax component, such as its purpose and applicability

Is Withholding Tax Specifies whether the tax component is a witholding tax. This check-box cannot be cleared once it is selected.

Tax Type The tax type mapped to the tax component. Though you can edit the tax type of a tax component after creating it, it's advised to not edit it if you've applied the tax component on any requisition or invoice.

Rate The percentage or per unit rate of the tax component. For withholding taxes, the rate must be a negative value.

Applied As Specifies whether the rate is to be applied as a percentage or on a per unit basis. For withholding this, the rate can only be applied as a percentage.

Abatement Percentage of the net amount on which the tax is applied. For example, some import duties are applied on an amount more than the item’s price; say twice the price. In such cases, abatement is 200 percent.

Country The country/region for which the tax component is applicable. If you specify a country/region, the tax component can only be assigned to tax codes defined for that country/region. If you do not specify a country/region, the tax component can be assigned to any tax code. This field is mandatory if you are creating tax components using the user interface.

State The state for which the tax component is applicable. This enables you to define different tax components for different states in the same country/region. For example, sales tax can vary across different states in a country/region.

Effective Date The date from which the tax component is effective. This enables you to define a tax component that will become effective in the future, say the next financial year. If you apply a tax code that includes a tax component which is not yet effective, the tax component is not considered when calculating taxes for the item.

Expiry Date The date on which the tax component expires. Expired tax components are not considered while calculating the tax on an item, even if they are part of the tax code applied on that item.

Tax and charge configurationTopics about managing tax data in Ariba Administrator PUBLIC 35

Field Description

Purchasing Unit/Plant/Set ID The unit in the company for which the tax component is applicable. For generic variants, specify a purchasing unit, for SAP variants, specify the plant, and for PeopleSoft variants, specify the Set ID for which the tax component is applicable. If you specify a value for this field, the tax component is not applied to line items from other units.

Is Deductible Specifies whether the tax component is deductible. Deductible tax components can have separate accounting information to simplify their tracking and refunds. If you clear this check box after specifying the accounting information, changes made to the accounting fields are lost. This field is not applicable for withholding taxes.

Accounting You can specify separate accounting details for deductible tax components. If you do not specify separate accounting details, deductible tax components use the default accounting details defined for all deductible tax components. If these too are not defined, they use the accounting details of the line item. If a deductible tax component is applied on a charge, it uses the accounting details of the line item. Deductible tax components use only one set of accounting details even if the line item on which they are applied uses split accounting. Non-deductible tax components use the accounting details and splits of the line item, even if you specify separate accounting details for them while creating them.

TipThe date based on which taxes are calculated in invoice reconciliation documents is customizable. By default, the system uses the creation date of the invoice reconciliation document to determine applicable tax components based on the effective date; but for more acurate tax calculations, SAP Ariba recommends that you have your site configured to use the invoice date.

If you want to change the effective date for tax calculation on invoice reconciliations configured for your site, contact SAP Ariba Customer Support.

Related Information

What are tax codes? [page 37]How to define tax components in Ariba Administrator [page 42]



What are tax codes?Tax codes are sequenced collections of one or more tax components that define the tax rates applied on line items and how to calculate the tax amount. Only one tax code can be applied on a line item.

Tax codes are used in the enhanced tax engine configuration and also in third-party tax calculation systems. Tax codes in the basic tax configuration simply define the name, description, and the country/region.

For line items that are exempted from tax, instead of not applying a tax code, apply a tax code that has a tax component with zero tax rate. The description of this tax code should clearly indicate that the item is exempted from tax.

The following table describes the attributes of a tax code. These are displayed as fields on the Create Tax Code page in Ariba Administrator.

Field Description

ID User-specified unique identifier of the tax code.

Is Withholding Tax Specifies whether the tax code is a withholding tax code.

Name User-specified name of the tax code. Multiple tax codes can have the same name, though it is advised to provide a uniquely identifiable name to every tax code.

Description Information about the tax code, such as its purpose and applicability.

Country The country/region for which the tax code is applicable. If you specify a country/region, the tax code can be applied only on line items being shipped to that country/region. If you do not specify a country/region, the tax code can be applied on all line items. This field is mandatory while creating tax codes using the user interface.

State The state for which the tax code is applicable. This enables you to define different tax codes for different states in the same country/region. For example, tax on petroleum products can vary across different states in a country/region.

Tax Components The tax components that are assigned to the tax code. You can assign up to 702 tax components to a tax code to include the different taxes applicable on a line item. For example, you can assign tax components VAT, service tax, and CESS to a tax code defined for assembled machinery. You cannot assign more than one tax component of the same tax type that is effective at the same time to a tax code. Also, you cannot assign indirect tax components to withholding tax codes or withholding tax components to indirect tax codes.


Field Description

Sequence Specifies the sequence in which tax components must be applied to a line item to calculate tax. Every tax component assigned to a tax code has a unique sequence, which is a set of one or more upper-case Latin letters. For example, A, B, C, or AA, AB, ZZ. Sequences enable you to define complex tax structures.

Applied On Specifies the amount on which the tax rate must be applied to calculate taxes. This field can take any mathematical formula.

You can use the following keywords in this formula:

● Quantity: This is used to apply taxes on the quantity of the item. This is used when the tax component has a per unit tax rate.

● NetAmount: This is used to apply taxes on the discounted price of an item.

● BaseAmount: This is used to apply taxes on the original or contract price of the item.

You can also use the sequence of another tax component to apply tax on taxes. For example:

● NetAmount*0.5: To apply tax on 50% of the item's net amount

● NetAmount+A: To apply tax on the sum of the item's net amount and the tax amount of the tax component with sequence A.

● A: To apply tax only on the tax amount of the tax component with sequence A.

The table below explains how you can use the Applied On field to apply a tax on another tax or on the base amount plus a tax. In the example below, let us assume the BaseAmount of the line item to be USD100 and the quantity to be 10.

Sequence Tax Component Tax Rate

Applied On

(specified formula) Abatement

Applied On

(calculated value) Tax Amount

A VAT 20% BaseAmount 100% $100 $20

B Service Tax 10% BaseAmount 100% $100 $10

C Cess 2% B 100% $10 $0.2

D Custom Duty 20% BaseAmount 200% $200 $40

E Excise Duty $1 per unit Quantity 100% 10 $10



Sequence Tax Component Tax Rate

Applied On

(specified formula) Abatement

Applied On

(calculated value) Tax Amount

Total Tax Amount $80.2

You can also use formulas to define the Applied On amount for a tax component. For example, in Japan, withholding taxes are calculated based on the tier in which the amount lies. A 10% tax is applicable on amounts up to JPY 1,000,000 while a 20% tax rate is applicable on amounts greater than JPY 1,000,000. The total withholding tax is calculated by adding the tax amounts for the two tiers. In this case, you can specify the formula min(BaseAmount,1000000)*10% + max(BaseAmount-1000000,0)*20% in the Applied On field.

Related Information

How to define tax codes in Ariba Administrator [page 43]What are tax components? [page 34]What are tax code lookups and tax code lookup field maps? [page 39]

What are tax code lookups and tax code lookup field maps?Tax code lookups enable automatic application of tax codes on requisitions and invoice reconciliation documents using the enhanced tax computation engine or externally in the third-party tax calculation systems.

Tax Code Lookups

Tax code lookup field maps define the mapping between tax code lookup fields and line item fields of requisitions, invoices, and invoice reconciliation documents. For sites enabled to use the enhanced tax computation engine, tax managers and customer administrators can define tax code lookup field maps using CSV file import on the Tax Manager user interface.

For indirect taxes, the tax code lookup fields are mapped to requisition, invoice, or invoice reconciliation line item fields. Based on this mapping, system applies indirect tax codes on requisition, invoice, or invoice reconciliation line items. For withholding taxes, the tax code lookup fields are mapped to invoice and invoice reconciliation line item fields. Based on this, the system applies withholding tax codes at the header or line-item level on invoices and invoice reconciliation documents.

The following table illustrates how tax codes are automatically identified based on the values of different line item fields. You can see that the tax code TAX-US1 is applicable on a line item having commodity code 10001, which is being shipped from USA to USA. This tax code will get applied if the automatic tax application occurs between January 1, 2014 and December 31, 2020.


Description RankCommodityCode

ShipFromCountry

ShipToCountry EffectiveDate ExpiryDate TaxCode

TCL-1 1 10001 IE US 1/1/2014 12/31/2020 TAX-IE1

TCL-2 1 10001 US US 1/1/2014 12/31/2020 TAX-US1

TCL-3 1 10001 DE US 1/1/2014 12/31/2020 TAX-DE1

TCL-4 1 10024 DE US 1/1/2014 12/31/2020 TAX-DE2

TCL-5 2 10024 DE US 1/1/2014 12/31/2020 TAX-DE3

If multiple tax codes are specified for the same combination of line item field values, then the tax code to be applied is selected based on its rank. If the ranks are also the same, then any of tax codes is considered to be a applicable on the line item. In the table above, the tax code TAX-DE2 will be applied on the line item.

About Adding Custom Fields to the Tax Code Lookup

You can add custom fields to the tax code lookup to enable tax calculation based on additional criteria. To do this, you need to contact your SAP Ariba customer support administrator.

The SAP Ariba customer support administrator can add custom fields to the tax code lookup by creating new fields in the TaxCodeLookup class, using the Customization Manager Field Configuration workspace in Ariba Administrator.

After a custom field is added to the tax code lookup, a customer administrator or tax manager must map it to a line item field by creating a tax code lookup field map for the custom field.

Tax Code Lookup Field Maps

For indirect taxes, tax code lookup field maps map tax code lookup fields to line item fields of requisitions, invoices, and invoice reconciliation documents. For withholding taxes, tax code lookup field maps map tax code lookup fields to line item fields of invoices and invoice reconciliation documents.

Default tax code lookup field maps are defined in the system for all the out-of-the-box tax code lookup fields. You can edit, activate, or deactivate this default mapping or define new tax code lookup field maps for custom fields in the tax code lookup using the Tax Manager workspace.

The following table describes the default mapping defined in the system for all the out-of-the-box tax code lookup fields. For information on the out-of-the-box tax code lookup fields, see Import Tax Code Lookups [page 70].



Tax Code Lookup Field

Line Item Field

For Requisition Line Item For Invoice Line ItemFor Invoice Reconciliation Line Item

CommodityCode NA CommodityCode

SystemCommodityCode Description.CommonCommodityCode

Description.CommonCommodityCode

Description.CommonCommodityCode

ShipFromCountry SupplierLocation.Country

ShipFrom.PostalAddress.Country

ShipFrom.PostalAddress.Country

ShipFromState SupplierLocation.State

ShipFrom.PostalAddress.State

ShipFrom.PostalAddress.State

ShipToCountry ShipTo.Country ShipTo.PostalAddress.Country

ShipTo.PostalAddress.Country

ShipToState ShipTo.State ShipTo.PostalAddress.State

ShipTo.PostalAddress.State

SupplierLocation LineItemCollection.SupplierLocation

LineItemCollection.SupplierLocation

LineItemCollection.SupplierLocation

ProcurementUnit ProcureLineItemCollection.ProcurementUnit

ProcureLineItemCollection.ProcurementUnit


Related Information

How to define tax code lookup field maps in Ariba Administrator [page 44]


How to define tax components in Ariba AdministratorIf your SAP Ariba solution is configured to calculate taxes using the enhanced tax computation engine, you can create, edit, and delete tax components using the Tax Manager workspace in Ariba Administrator.

Prerequisites

● You must be a member of the Tax Manager or Customer Administrator group.● Tax types must be defined in the site.

Procedure

1. On the dashboard, click Manage Core Administration .

2. Click Tax Manager Tax Components .3. On the Tax Components page, click Create New.4. On the Create Tax Component page, on the General tab, specify the details of the tax component.

NoteIf you specify a value for the Purchasing Unit, Plant, or Set ID field, the tax component is only applied to line items from the specified purchasing unit, plant, or set ID.

For information on the fields on the Create Tax Component page, see What are tax components? [page 34].

5. If the tax component is deductible, specify its accounting details on the Accounting tab.

NoteIf you do not define the accounting details for a deductible tax component, it picks up the accounting details applicable to all deductible tax components. If this too is not defined, the tax component uses the accounting details of the requisition line item.

6. Click Save.

The tax component is created and listed on the Tax Components page.7. To edit a tax component, on the Tax Components page, click Edit, edit the fields displayed on the Edit Tax

Component page, and click Save.

NoteIt is advised not to edit the tax type if you have applied the tax component on any requisition or invoice.

8. To delete a tax component, on the Tax Components page, select the tax component and click Delete.



Related Information

How to define tax codes in Ariba Administrator [page 43]What are tax components? [page 34]

How to define tax codes in Ariba AdministratorYou can create, edit, activate, and deactivate tax codes using the Tax Manager workspace in Ariba Administrator.

Prerequisites

● You must be a member of the Tax Manager or Customer Administrator group.● Tax components must be defined in the site.

Procedure


2. Click Tax Manager Tax Codes .3. On the Tax Codes page, click Create New.4. On the Create Tax Code page, on the General tab, specify the details of the tax code.

For information on the fields on the General tab, see What are tax codes? [page 37].5. Click the Details tab.6. Click Assign Component.

NoteYou can assign upto 702 tax components to a tax code.

You cannot assign more than one tax component of the same tax type, that is effective at the same time, to a tax code.

A new row is added to the table with sequence A. This sequence value is incremented for every tax component you assign to the tax code.

7. Select a tax component using the chooser displayed in the Tax Component column.

NoteThe tax component chooser displays only the tax components that have been defined for the country/region selected for the tax code and the ones which do not have a country/region associated with them.


8. Specify the Applied On value.

NoteThe Applied On value must only be Quantity if the tax is applied per unit, or it must be BaseAmount, NetAmount, or a valid formula if the tax is applied as a percentage. To apply a tax component on another tax component, specify a valid formula using defined sequences. For example, (A+B).

9. If required, move the tax components up or down in the sequence using the Move Up and Move Down buttons.

NoteTo apply a tax, say Cess, on another tax, say VAT, the tax component for VAT must assigned to the tax code before assigning the tax component for Cess. For more information on defining complex tax structures, see What are tax codes? [page 37].

10. Click Save.

The tax code is created and listed on the Tax Codes page.

11. To edit a tax code, on the Tax Codes page, click Actions Edit .

12. To activate a tax code, on the Tax Codes page, click Actions Activate .

13. To deactivate a tax code, on the Tax Codes page, click Actions Deactivate .

Related Information

How to define tax components in Ariba Administrator [page 42]What are tax codes? [page 37]

How to define tax code lookup field maps in Ariba Administrator

If your SAP Ariba solution is configured to calculate taxes using the enhanced tax computation engine, you can manage the tax code lookup field maps for indirect and withholding taxes used by the tax engine.

Prerequisites

● You must be a member of the Tax Manager or Customer Administrator group.● Tax codes must be defined in the site.



Context

By default, fields in the tax code lookup are mapped to the respective line items fields. You can change this default mapping using the Tax Manager workspace in Ariba Administrator. You can create, edit, activate, and deactivate tax code lookup field maps.

Procedure


2. Click Tax Manager Tax Code Lookup Field Map to define mappings for indirect taxes or Tax ManagerTax Code Lookup Field Map for Withholding Taxes to define mappings for withholding taxes.

3. To create a new tax code lookup field map, click Create New.4. On the General tab, select the field in the tax code lookup, using the Tax Code Lookup Field pull-down menu.5. From the Line Item Type pull-down menu, select the type of line item for which you want to define the tax code

lookup field map.

NoteFor indirect taxes, you can map tax code lookup fields to line item fields of requisitions, invoices, and invoice reconciliation documents. For withholding taxes, you can map tax code lookup fields to line item fields of invoices and invoice reconciliation documents.

6. Click the (select) link to select the line item or approvable field.7. Click Save.8. To edit a tax code lookup field map, on the Tax Code Lookup Field Map or Tax Code Lookup Field Map for

Withholding Taxes page, click Actions Edit .9. To activate a tax code lookup field map, on the Tax Code Lookup Field Map or Tax Code Lookup Field Map for

Withholding Taxes page, click Actions Activate .10. To deactivate a tax code lookup field map, on the Tax Code Lookup Field Map or Tax Code Lookup Field Map

for Withholding Taxes page, click Actions Deactivate .

You cannot delete a tax code lookup field map.

Related Information

What are tax code lookups and tax code lookup field maps? [page 39]How to define tax codes in Ariba Administrator [page 43]


India GST information on requisitions and invoices

All businesses operating in the states and the union territories of India must adhere to the India Goods and Services Tax (GST) act of 2016, effective from July 1, 2017.

Under GST, all goods and services transacted in India are classified under the Harmonized System of Nomenclature (HSN) system and the Service Accounting Code (SAC) system. GST for goods and services is determined based on the HSN code or the SAC code of an item.

The GST information on requisitions includes the classification codes assigned to the line items. The Classification Code for an item is based on the SAC or the HSN code mapped to the commodity code of the item.

Invoices compliant with India GST rules must include the following information:

● Buyer GST ID: The GST registration number of the buyer organization.● Supplier GST ID: The GST registration number of the supplier organization.● Tax Invoice Number: A consecutive serial number, unique for a financial year.

Components of GST

Depending on whether a trading transaction is intra-state or inter-state, the components of GST are determined as follows:

● SGST and UTGST: State GST or SGST is a tax levied by the respective state government on supplies of goods and services within the state. The previous state taxes, such as the value-added tax (VAT), entertainment tax, luxury tax, and entry tax are subsumed under SGST.Similar to SGST, UTGST or Union Territory GST is a tax levied by the respective union territory.

● CGST: Central GST or CGST refers to taxes levied by the central government on supplies of goods and services within a state. The previous central taxes, such as the central excise duty, additional excise duty, special excise duty, central sales tax, and service tax are subsumed under CGST.

● IGST: Integrated GST or IGST is the tax levied on the supply of goods and services on inter-state trade across India. The taxes collected under IGST is shared by the central and the respective state governments based on the rates specified by the central government.


India GST information on requisitions and invoices

The following image illustrates how SGST, CGST, and IGST are applied on goods and services:

Prerequisites

● All businesses with an annual turnover exceeding a specific limit must be registered under GST in each state or union territory where they operate. The threshold limit varies depending on whether a state or a union territory is classified as a special category state.

● Buyer and supplier organizations must have separate GST identification numbers (GSTIN) for each state where they have registered their business. GSTIN refers to a unique, state-wise, 15-character identification code for tax payers in India under the new GST regime. The first two digits of this identification code represent the state code. For example, "29" in the GSTIN "29BFEQB4818G1Z5" is the state code for Karnataka.

Related Information

Adding India goods and services tax (GST) on invoicesHow to add India GST information on an invoiceCentral Board of Excise and Customs website

Tax and charge configurationIndia GST information on requisitions and invoices PUBLIC 47

https://help.sap.com/viewer/e67565bd52934da891ccbab53f5368af/cloud/en-US/3aafe29cc2d34e3bba71d73135bb74ff.html

https://help.sap.com/viewer/e67565bd52934da891ccbab53f5368af/cloud/en-US/35e850f046f24da0b627a933fb3cefcd.html

http://help.sap.com/disclaimer?site=https%3A%2F%2Fwww.cbic.gov.in%2F

How to configure India GST data for requisitions and invoices

Configuring data for India Goods and Services Tax (GST) involves mapping state codes to supplier locations and defining and mapping HSN and SAC codes.

Prerequisites

● Members of the Customer Administrator group can perform this task.● All businesses with an annual turnover exceeding a specific limit must be registered under GST in each state or

union territory where they operate. The threshold limit varies depending on whether a state or a union territory is classified as a special category state. For more information about the registration requirements, see the Central Board of Excise and Customs website: http://www.cbec.gov.in/htdocs-cbec/gst .

● Buyer and supplier organizations must have separate GST identification numbers (GSTIN) for each state where they have registered their business. GSTIN refers to a unique, state-wide, 15-character identification code for tax payers in India under the new GST regime. The first two digits of this identification code represent the state code. For example, "29" in the GSTIN "29BFEQB4818G1Z5" is the state code for Karnataka.

Procedure

1. Import the state codes by running the Import States for Tax Mapping data import task.2. Add the state code values to the addresses of the supplier locations in India using one of the following options:

○ Import Suppliers data import task. For details about defining supplier locations, see Supplier location data (consolidated file) data import or Supplier data import (legacy import).

○ From the Supplier Manager Suppliers task in Ariba Administrator.3. (For SAP ERP only) Define the state codes for the plants using the Import Plants Data task. For more

information, see Import Plants Data.4. Define the HSN and SAC codes in the CommodityCode.csv file used by the Import System Commodity

Codes task, and then run the task.

NoteThe domain name for the HSN and SAC codes in the SAP Ariba solution is HSNSAC.

The Import System Commodity Codes data import task creates hierarchical relationships between related commodity codes.

The following is a sample of the CommodityCode.csv file consisting of the HSN and SAC codes:

"UTF-8" Domain,UniqueName,Name,ParentUniqueName,Enabled,AdhocClassification


How to configure India GST data for requisitions and invoices

http://help.sap.com/disclaimer?site=http%3A%2F%2Fwww.cbec.gov.in%2Fhtdocs-cbec%2Fgst

https://help.sap.com/viewer/e10ed2159560487bb36d1ae89a6e293a/cloud/en-US/6a8438e5c1da101494d9d4f7e404832e.html#loio6a8438e5c1da101494d9d4f7e404832e

https://help.sap.com/viewer/e10ed2159560487bb36d1ae89a6e293a/cloud/en-US/6a8438e5c1da101494d9d4f7e404832e.html#loio6a8438e5c1da101494d9d4f7e404832e

https://help.sap.com/viewer/e10ed2159560487bb36d1ae89a6e293a/cloud/en-US/6a837053c1da10149377d9c299fd907e.html#loio6a837053c1da10149377d9c299fd907e

https://help.sap.com/viewer/e10ed2159560487bb36d1ae89a6e293a/cloud/en-US/6ac96856c1da10149af98662d64699ba.html#loio6a805466c1da1014a667b7b315a9dc53

HSNSAC,"All","All Commodities",,"Yes",HSNSAC,6205,MEN'S OR BOY'S SHIRTS,All,Yes,HSNSAC,620520,MEN'S OR BOYS' SHIRTS OF COTTON,6205,Yes,HSNSAC,62052000,MEN'S OR BOYS' SHIRTS OF COTTON NOS,620520,Yes,HSNSAC,620530,MEN'S OR BOYS' SHIRTS OF MAN‐MADE FIBRES,6205,Yes,HSNSAC,62053000,MEN'S OR BOYS' SHIRTS OF MAN‐MADE FIBRES NOS,620530,Yes,HSNSAC,620590,SHIRTS OF OTHER TEXTILE MATERIALS,6205,Yes, HSNSAC,62059010,MEN'S OR BOY'S SHIRTS OF SILK,620590,Yes,

5. Define the mapping between the United Nations Standard Products and Services Code (UNSPSC) code and the HSN and SAC codes in the ClassificationCodeMap.csv file used by the Import Classification Code Relationship task.

The following is a sample of the ClassificationCodeMap.csv file consisting of HSN and SAC codes:

"UTF-8" DomainFrom,ValueFrom,DomainTo,ValueTo"HSNSAC","620520","unspsc","53101602""HSNSAC","620590","unspsc","531016""HSNSAC","84713010","unspsc","432115""HSNSAC","84713010","unspsc","43211507" "HSNSAC","84714120","unspsc","43211512"

6. Run the Import Classification Code Relationship task to import the ClassificationCodeMap.csv file consisting of the HSN and SAC codes. The Import Classification Code Relationship data import task maps commodity codes in the UNSPSC and the HSNSAC domains.

Related Information

How to add state codes for supplier locations in Ariba Administrator [page 50]Import States for Tax Mapping [page 81]India GST information on requisitions and invoices [page 46]

Tax and charge configurationHow to configure India GST data for requisitions and invoices PUBLIC 49

How to add state codes for supplier locations in Ariba Administrator

The state code for a supplier location is part of the supplier location address. You can add a state code using the Supplier Manager Suppliers task in Ariba Administrator.

Prerequisites

Members of the Customer Administrator group can perform this task.

Import the state codes first by running the Import States for Tax Mapping data import task.

Context

You can also add state codes using the Import Suppliers data import task, see Supplier data import (consolidated file import) or Supplier data import (legacy import).

State codes are required for configuring India Goods and Services Tax (GST) data for supplier locations in India.

Procedure

1. In Ariba Administrator, click Supplier Manager Suppliers and search for a supplier.2. Click the link for the appropriate supplier in the search results.3. On the Partioned Suppliers tab, click the name of the supplier.4. On the Supplier Locations tab, click the link for a supplier location.5. On the Supplier Address tab, select the appropriate value for the State Code dropdown.

Related Information

Import States for Tax Mapping [page 81]


How to add state codes for supplier locations in Ariba Administrator

https://help.sap.com/viewer/e10ed2159560487bb36d1ae89a6e293a/cloud/en-US/6a83d1a7c1da1014982dbe49adb00489.html#loio6a83d1a7c1da1014982dbe49adb00489

https://help.sap.com/viewer/e10ed2159560487bb36d1ae89a6e293a/cloud/en-US/6a83d1a7c1da1014982dbe49adb00489.html#loio6a83d1a7c1da1014982dbe49adb00489

https://help.sap.com/viewer/e10ed2159560487bb36d1ae89a6e293a/cloud/en-US/6a837053c1da10149377d9c299fd907e.html#loio6a837053c1da10149377d9c299fd907e

Tax and charge configuration data import files

Members of the Tax Manager and Customer Administrator groups can import tax and charge data. This tax and charge data is used to apply taxes and charges on requisitions, invoices, and invoice reconciliation line items and approvables.

Tax information data setup requirement [page 51]

Tax and charge data import sequence [page 53]

Import Tax Types [page 55]

Import Tax Type Translations [page 56]

Import Tax Type Mappings [page 56]

Import Charge Types [page 58]

Import Charge Type Translations [page 59]

Import Tax Components [page 60]

Import Tax Component Translations [page 62]

Import Tax Codes [page 63]

Import Tax Code Translations [page 70]

Import Tax Code Lookups [page 70]

Import Tax Code Lookup Field Map [page 72]

Import Tax Code Lookup Field Map for Withholding Taxes [page 73]

Import Tax Rates By Tax Code Lookup [page 75]

Import External Tax Calculation Providers [page 76]

Import Company Code Tax Registration Numbers [page 79]

Import Supplier Tax Registration Numbers [page 80]

Import States for Tax Mapping [page 81]

Import Buyer Tax Registration Numbers [page 81]

Tax information data setup requirement The following table lists the tax-related data import tasks required for the basic, enhanced, and third-party tax configurations.

If your site is enabled for taxes and charges on requisitions and purchase orders using the enhanced tax computation engine, you must load or manually set up all data required for tax computation.

If your site uses third-party tax computation for either requisitions or invoice reconciliations (but not both), you must complete the data import tasks required for both the enhanced tax computation engine and the third-party

Tax and charge configurationTax and charge configuration data import files PUBLIC 51

tax computation system. This ensures that taxes can be calculated using the enhanced tax computation engine for the document type (requisition or invoice reconciliation) for which taxes are not calculated externally.

Task name

Required for basic tax configuration (applicable to invoices and invoice reconciliations only)

Required for enhanced tax computation

Required for third-party tax calculation

Import Tax Types No Yes Yes

Import Tax Type Mappings Yes Yes No

Import Tax Components No Yes No

Import Tax Codes Yes Yes Yes

Import Tax Code Lookups Yes Yes No

Import Tax Code Lookup Field Map No Yes No

Import Tax Code Lookup Field Map for Withholding Taxes

No Yes (if withholding taxes are applicable)

Yes (if your site calculates withholding taxes using the enhanced tax computation engine, controlled by Application.Invoicing.UseNativeTaxEngineForWithholdingTax, which SAP Ariba sets for you)

Import Tax Rates By Tax Code Lookup Yes No No

Import External Tax Calculation Providers

No No Yes

Import Company Code Tax Registration Numbers (Only for sites integrated with SAP ERP)

No No Yes

Import Buyer Tax Registration Numbers (Only for sites integrated with PeopleSoft ERP or Generic ERP)

No No Yes

Import Supplier Tax Registration Numbers

No No Yes

Related Information




Taxes in SAP Ariba Procurement solutions [page 6]Before setting up your tax tables [page 32]Topics about managing tax data in Ariba Administrator [page 34]

Tax and charge data import sequence To successfully import tax and charge data, you run the import tasks in a defined sequence. After your tax and charge data is defined, you can start importing requisitions containing taxes, discount, and charges.

Sequence for switching from the basic tax configuration to the enhanced tax computation engine

The master data used by these import tasks must already be defined in your site before you run these tasks. For example, purchasing units must be defined in your site before you import tax components.

If you're using third-party tax calculation, see also Tax information data setup requirement [page 51]. That topic describes which tax-related import tasks are required.

1. Import Tax Types2. Import Tax Type Translations3. Import Tax Type Mappings4. Import Charge Types5. Import Charge Type Translations6. Import Tax Components7. Import Tax Component Translations8. Import Tax Codes9. Import Tax Code Translations10. Import Tax Code Lookups11. Import Tax Code Lookup Field Map12. Import Tax Code Lookup Field Map for Withholding Taxes13. Import Purchase Order ID with Line Numbers (SAP variants)14. Import Change Purchase Order ID with Line Numbers (SAP variants)

Sequence for new SAP Ariba sites

If your site is new and doesn't have any transactional data yet, follow the sequence in the following table to import tax data and related master data.

If you're using third-party tax calculation, see also Tax information data setup requirement [page 51]. That topic describes which tax-related import tasks are required.


Generic ERP System SAP ERP PeopleSoft ERP

1. Import Tax Types (required for enhanced tax computation only)

2. Import Tax Type Translations3. Import Tax Type Mappings4. Import Charge Types5. Import Charge Type Translations6. Import Purchasing Units7. Import Accounts8. Import Companies9. Import Business Units10. Import Cost Centers11. Import Products12. Import Projects13. Import Accounting Regions14. Import Subaccounts15. Import Tax Components (required

for enhanced tax computation only)16. Import Tax Component

Translations17. Import Tax Codes18. Import Tax Code Translations19. Import ERP Commodity Codes20. Import Payment Terms21. Import Supplier Organizations22. Import Suppliers23. Import Tax Code Lookups24. Import Tax Rates by Tax Code

Lookup (required for basic tax configuration only)

25. Import Tax Code Lookup Field Map (required for enhanced tax computation only)

26. Import Tax Code Lookup Field Map for Withholding Taxes (required for enhanced tax computation only)


2. Import Tax Type Translations3. Import Tax Type Mappings4. Import Charge Types5. Import Charge Type Translations6. Import Purchasing Units7. Import Company Codes8. Import Account Categories9. Import Assets10. Import Cost Centers11. Import General Ledgers12. Import Internal Order Codes13. Import WBS Elements14. Import Plants Data15. Import Tax Components (required

for enhanced tax computation only)16. Import Tax Component

Translations17. Import Tax Codes18. Import Tax Code Translations19. Import ERP Commodity Codes20. Import Supplier Organizations21. Import Payment Terms22. Import Suppliers23. Import Tax Code Lookups24. Import Tax Rates by Tax Code





2. Import Tax Type Translations3. Import Tax Type Mappings4. Import Charge Types5. Import Charge Type Translations6. Import Purchasing Units7. Import SetIDs8. Import Account Types9. Import Accounts10. Import Departments11. Import Products12. Import Projects13. Import Supplier Organizations14. Import Payment Terms15. Import Suppliers16. Import ERP Commodity Codes17. Import Business Units18. Import GL Business Units19. Import Statistics20. Import Tax Components (required

for enhanced tax computation only)21. Import Tax Codes22. Import Tax Code Translations23. Import Tax Code Lookups24. Import Tax Rates by Tax Code




Related Information

Before setting up your tax tables [page 32]Tax information data setup requirement [page 51]Taxes in SAP Ariba Procurement solutions [page 6]Topics about managing tax data in Ariba Administrator [page 34]



Import Tax TypesUse this task to import tax types for SAP Ariba Procurement solutions. You use tax types to create tax components or to add taxes to invoices. To succesfully send and receive purchase orders and invoices containing taxes to and from Ariba Network, also import tax type mappings using the Import Tax Type Mappings task.

Related Information

Import Tax Type Translations [page 56]Import Tax Type Mappings [page 56]Tax and charge data import sequence [page 53]

Import Tax Types: Sample File

The table below describes the fields in the TaxType.csv file required to run this task. This file can be used for all variants.

Field Required Description Sample Value

UniqueName Yes String. The unique name of the tax type defined in SAP Ariba Procurement solutions

EducCESS

Name Yes MultiLingualString. The name of the tax type. This is displayed on the user interface.

Education CESS

Category Yes Integer. The category of the tax type. This value is 2 for indirect taxes and 64 for withholding taxes.

2


Import Tax Type TranslationsThis task enables you to import translations for the tax types imported using the Import Tax Types task. The translated tax type names are displayed on the user interface. Before you run this task, ensure that tax types have been defined in the site.

Import Tax Type Translations: Sample File

The table below describes the fields in the TaxType.csv file used to import translations for tax types. This file can be used for all ERP systems.


UniqueName Yes String. The unique identifier of the tax type. This value must match a value in the TaxType.csv file used to import tax types.

EducCESS

Name No MultiLingualString. The translated name of the tax type. This is displayed on the user interface.

SalesTax

Language Yes String. The language to which the tax type name has been translated.

French

Import Tax Type MappingsThe Import Tax Type Mappings data import task maps the tax types defined in SAP Ariba Procurement solutions to those defined in Ariba Network. It reads data from the TaxTypeMap.csv file. This task is required for successfully exchanging purchase orders and invoices between SAP Ariba Procurement solutions and Ariba Network.



Tax Line Type Descriptions

The following table describes the tax-related procurement line types in the default configuration.

Tax Line Type Description

SalesTax (SAP and Generic only) Sales tax. A tax that is imposed on retail sales of tangible personal property and certain services.

UseTax (SAP and Generic only) Use tax. A tax that is imposed on the use, storage, or consumption of tangible personal property.

SUTTax (PeopleSoft only) Sales/use tax. Sales tax is a tax that is imposed on retail sales of tangible personal property and certain services. Use tax is a tax that is imposed on the use, storage, or consumption of tangible personal property.

VATTax Value-added tax (VAT). A general consumption tax that is assessed on the value added to goods and services at each stage in the production and distribution chain.

GSTTax Goods and services tax (GST). A value-added tax on the sale of goods and services that exists some geographies.

PSTTax Provincial sales tax (PST). A tax imposed on the consumers of goods and services in Canadian provinces.

HSTTax Harmonized sales tax. A single harmonized value-added tax that replaced the provincial sales taxes and the federal goods and services taxes in Nova Scotia, New Brunswick, Newfoundland, and Labrador.

QSTTax Quebec provincial sales tax (QST). A sales tax imposed on retail sales in Quebec.

WHTTax Withholding tax. In certain geographies, this type of tax is required for self-employed suppliers and is generally paid by the buying organization to the state or government tax authorities on behalf of the supplier. The tax percentage rate or tax amount must be entered as a negative amount.

Withholding taxes are subtracted from the invoice total. Withholding taxes cannot be applied at the header level and accruals do not apply to withholding tax, therefore, accrual payments are not created.

Import Tax Type Mappings: Sample File

The table below describes the fields in the TaxTypeMap.csv file required to run this task. This file can be used for all variants.


Name Yes String. The unique name of the tax type in SAP Ariba Procurement solutions

sales

TaxLineType Yes String. The unique name of the tax line type.

SUTTax


Following is an example of the TaxTypeMap.csv file for sites integrated with generic ERP systems:

UTF8 Name,TaxLineType sales,SalesTaxvat,VATTaxgst,GSTTaxpst,PSTTaxhst,HSTTaxqst,QSTTax withholdingTax,WHTTax

Following is an example of the TaxTypeMap.csv file for sites integrated with SAP ERP systems:

UTF8 Name,TaxLineType sales,SalesTaxvat,VATTaxgst,GSTTaxpst,PSTTaxhst,HSTTaxqst,QSTTax withholdingTax,WHTTax

Following is an example of the TaxTypeMap.csv file for sites integrated with PeopleSoft ERP systems:

UTF8 Name,TaxLineType sales,SUTTax vat,VATTax gst,GSTTax pst,PSTTax hst,HSTTax qst,QSTTax withholdingTax,WHTTax

Import Charge TypesThis task enables you import charge types using a CSV file. You can then use these charge types to apply charges on requisitions and invoices.

Import Charge Types: Sample File

The table below describes the fields in the ChargeType.csv file used to import charge types. This file can be used for all ERP systems.



Field Name Required Description Sample Value

UniqueName Yes String. The unique name of the charge type. Charge types can be updated or deleted based on their unique name.

HMHCharge

Name Yes MultiLingualString. The name of the charge. This value is displayed on the user interface.

Hazardous Material Handling

Description No MultiLingualString. The description of the charge type, such as its purpose and applicability

Charge type for hazardous materials such as radioactive materials and chemicals

ANChargeName No String. The unique name used for the charge type in Ariba Network. If this value is not specified during the import operation, the UniqueName specified for the charge type is used as its AN Charge Name.

HazardousMatHandling

Import Charge Type Translations

This new import task enables you to import translations for the charge types imported using the Import Charge Types task. The translated charge type names are displayed on the user interface.

Import Charge Type Translations: Sample File

The table below describes the fields in the ChargeType.csv file used to import translations for charge type names and descriptions. This file can be used for all ERP systems.


UniqueName Yes String. The unique identifier of the charge type. This value must match a value in the ChargeType.csv file used to import charge types.

ShippingCharge



Description Yes MultiLingualString. The translated description of the charge type. This is displayed on the user interface.

Frais de port

Name Yes MultiLingualString. The translated name of the charge type. This is displayed on the user interface.

Frais de port

Language Yes String. The language to which the charge type name and description has been translated.

French

Import Tax Components

This task enables you to import tax components. The imported tax components are displayed on the Tax Components page in the Tax Manager workspace. You can view and edit these tax components using the user interface. You can also add these tax components to tax codes. When updating the tax components, avoid changing the tax type assigned to the tax components. Though this action is allowed, it could lead to invoice exceptions in the invoices that are being reconciled. Before you run this task, you must import the tax types.

Import Tax Components: Sample File

The table below describes the fields in the CSV file required to import tax components. This file can be used for all ERP systems.


UniqueName Yes String. The unique name of the tax component. A tax component can be updated or deactivated using this unique name.

USA_Excise_Petroleum

Name Yes MultiLingualString. The user-specified name for the tax component. Multiple tax components can have the same name.

Excise_Petroleum




Description No MultiLingualString. Additional information about the tax component, such as its purpose or applicability

5 USD per unit excise duty applicable on petroleun products in USA

TaxType Yes String. The unique name of the tax type. The value specified here must match a tax type defined using the Import Tax Types task. It is advised not to modify this value during the update operation.

Excise

TaxRate Yes BigDecimal. The per unit or percentage rate using which the tax is calculated. For witholding taxes, this value must be less than or equal to zero.

12

AbatementPercent No BigDecimal. The percentage of the base amount on which the tax is applied

100

AppliedAs Yes Integer. Defines how the tax rate is applied to calculate tax amounts. This can be percentage or per unit. 0 denotes percentage while 1 denotes per unit.

0

Country Yes String. The unique name of the country/region for which the tax component is applicable

US

State No String. The state for which the tax component is applicable. This must be the unique name of the state for states in the USA.

Tx

EffectiveDate Yes Date. The date from which the tax component is effective, in MM/DD/YYYY format

1/1/2014

ExpiryDate No Date. The date on which the tax component expires, in MM/DD/YYYY format

12/31/2015



IsDeductible No Boolean. Specifies whether the tax component is deductible. You can specify accounting information for deductible tax components.

Yes/No

Purchasing Unit/Plant/SetID

No String. The unique identifier of the purchasing unit for which the tax component is applicable. The field name varies based on the ERP system used. For generic ERP system, it is Purchasing Unit, for SAP, it is Plant, and for PeopleSoft, it is Set ID. If you specify a value in this field, the tax component is not applied on line items or approvables from other purchasing units, plants, or Set IDs.

US003

Accounting fields No These fields can be used to specify accounting information for deductible tax components. Accounting information specified for non-deductible tax components is ignored. The field names of accounting fields vary based on the ERP system used.

Import Tax Component Translations

This task enables you to import the translated names of tax components using a CSV file. Before you run this task, ensure that tax components have been defined in the system.

Import Tax Component Translations: Sample File

The table below describes the fields in the TaxComponentTranslations.csv file used to import translations for tax components' names. This file can be used for all ERP systems.




UniqueName Yes String. The unique name of the tax component as defined in the ImportTaxComponent.csv file.

SalesTax_Petroleum

Description Yes MultiLingualString. The translated description of the tax component. This is displayed on the user interface

La taxe de vente pour les produits pétroliers

Name Yes MultiLingualString. The translated name of the tax component. This is displayed on the user interface.

TC_USA_Tx-USA_Oh_10001

Language Yes String. The language to which the name and description have been translated

French

Import Tax Codes

You can import tax codes using the TaxCodeHeader.csv and TaxCodeDetails.csv files. The imported tax codes are displayed on the Tax Codes page in the Tax Manager workspace. You can view and edit these tax codes using the user interface. Before you import tax codes, ensure that the tax components used by the tax codes have been defined in the system.

Import Tax Codes: files for Generic variants

Field descriptions for the files TaxCodeHeader.csv and TaxCodeDetails.csv explain the data that defines tax codes in sites configured as Simple Generic variants.

TaxCodeHeader.csv file

The table below describes the fields in the TaxCodeHeader.csv file required to import tax codes for generic ERP systems.



UniqueName Yes String. The unique name of the tax code. A tax code can be updated or deactivated using this unique name.


Name No MultiLingualString. The user-specified name of the tax code. This is displayed on the user interface. Multiple tax codes can have the same name.

USA_TexasToOhio

Description No MultiLingualString. Additional information about the tax code, such as its purpose or applicability

Tax code for IT equipment shipped from Texas, USA to Ohio, USA

Country No String. The unique identifier of the country for which the tax code is applicable.

US

State No String. The state for which the tax code is applicable. This must be the unique name of the state for states in the USA.

OH

PurchasingUnit No String. The unique identifier of the purchasing unit for which the tax code is applicable. Currently, the value specified for this field is not used by the system.

US003

TaxCodeDetails.csv file

The table below describes the fields in the TaxCodeDetails.csv file required to import tax codes for generic ERP systems.


Parent.UniqueName Yes String. The unique name of the tax code defined in the TaxCodeHeader.csv file





Sequence Yes String. The sequence of a tax component in the tax code. Sequences enable you to define tax on tax and cumulative taxes. The sequence must be a single uppercase Latin letter or a combination of two uppercase Latin letters. This value must be unique for a tax code.

B

Component Yes String. The unique name of the tax component

CESS_USA_24

AppliedOn Yes String. The amount on which the tax is applied. You can specify a formula here using the keywords BaseAmount, NetAmount, Quantity, or the sequences of other tax components in the tax code. BaseAmount refers to the amount before applying the discount while NetAmount is the amount after applying the discount.

BaseAmount+A

Import Tax Codes: files for SAP variants

Field descriptions for the files TaxCodeHeader.csv and TaxCodeDetails.csv explain the data that defines tax codes sites integrated with SAP ERP.


The table below describes the fields in the TaxCodeHeader.csv file required to import tax codes for SAP ERP systems.



MWSKZ Yes String. The unique name of the tax code. A tax code can be updated or deactivated using this unique name.


Name No MultiLingualString. The user-specified name of the tax code. This is displayed on the user interface. Multiple tax codes can have the same name.

USA_TexasToOhio

TEXT1 No MultiLingualString. Additional information about the tax code, such as its purpose and applicability


LAND1 Yes String. The unique identifier of the country/region for which the tax code is applicable

US


OH


The table below describes the fields in the TaxCodeDetails.csv file required to import tax codes for SAP ERP systems.


MWSKZ No String. The unique name of the tax code as defined in the TaxCodeHeader.csv file.






B


CESS_USA_24

AppliedOn Yes String. The amount on which the tax is applied. You can specify a formula here using the keywords BaseAmount, NetAmount, Quantity, or the sequences of other tax components in the tax code. BaseAmount refers to the amount before applying the discount while NetAmount is the amount after applying the discount.

BaseAmount+A

Import Tax Codes: files for PeopleSoft variants

Field descriptions for the files TaxCodeHeader.csv and TaxCodeDetails.csv explain the data that defines tax codes sites integrated with PeopleSoft.


The table below describes the fields in the TaxCodeHeader.csv file required to import tax codes for PeopleSoft ERP systems.



TAX_CD Yes String. The unique name of the tax code. A tax code can be updated or deactivated using this unique name.


TAX_CD_DESCR_ Yes MultiLingualString. The user-specified name of the tax code. This is displayed on the user interface. Multiple tax codes can have the same name.

USA_TexasToOhio

SETID Yes String. The unique internal identifier of a SetID for the tax code. The SetID must be defined in the SetId.csv file.

FEDRL

SETID_TAX_CD_ Yes String. The concatenated value of the SetID and the unique name of the tax code

FEDRL:TC_USA_Tx-USA_Oh_10001

DESCR No MultiLingualString. Additional information about the tax code, such as its purpose or applicability


Country No String. The unique identifier of the country/region for which the tax code is applicable

US


OH


The table below describes the fields in the TaxCodeDetails.csv file required to import tax codes for PeopleSoft ERP systems.




SETID_TAX_CD_ No String. The concatenated value of the SetID and the unique name of the tax code, as defined in the TaxCodeHeader.csv file

FEDRL:TC_USA_Tx-USA_Oh_10001


B


CESS_USA_24

AppliedOn Yes String. The amount on which the tax is applied. You can specify a formula here using the keywords BaseAmount, NetAmount, Quantity, and the sequences of other tax components in the tax code. BaseAmount refers to the amount before applying the discount while NetAmount is the amount after applying the discount.

BaseAmount+A


Import Tax Code TranslationsThis task enables you to import translations for the names of the tax codes imported using the Import Tax Codes task. The translated tax code names are displayed on the user interface. Before you run this task, ensure that tax codes have been defined in the site.

Import Tax Code Translations: Sample File

The table below describes the fields in the TaxCode.csv file used to import translations for tax codes. This file can be used for all ERP systems.


UniqueName Yes String. The unique name of the tax code as defined in the TaxCodeHeader.csv file.


Description Yes MultiLingualString. The translated description of the tax code. This is displayed on the user interface

Taxes pour les produits pétroliers en USA

Name Yes MultiLingualString. The translated name of the tax code. This is displayed on the user interface.


Language Yes String. The language to which the name and description have been translated

French

Import Tax Code LookupsThis task enables you to import tax code lookups. The system applies tax codes on requisition, invoice, and invoice reconciliation line items and approvables, based on the tax code lookup.

Import Tax Code Lookups: Sample File

The table below describes the fields in the TaxCodeLookup.csv file required to import tax code lookups. Additional customizable fields can be added to this file.




Description No MultiLingualString. Additional information about the tax code lookup, such as, the scenario in which a specific tax code is applicable

Tax code applicable on IT equipment being shipped from Texas, USA to Ohio, USA

CommodityCode Yes String. The commodity code of the line item

10001

PurchasingUnit No String. The unique identifier of the purchasing unit of the line item.

US003

ShipFromCountry Yes String. The unique identifier of the country/region from which the item is shipped. This is typically the country/region where the supplier is located.

US

ShipFromState Yes String. The state from which the item is shipped. This is typically the state where the supplier is located.

Tx

ShipToCountry Yes String. The unique identifier of the country/region to which the item is shipped

US

ShipToState Yes String. The state to which the item is shipped

OH

SupplierLocation No String. The unique internal identifier of a supplier location. This value must match a supplier location defined in the SupplierLocation.csv file. This field is mainly used to identify the withholding taxes applicable on a line item or approvable.

4815

Rank Yes Integer. The priority of the tax code lookup entry in case of multiple matches. Lower the rank, higher the priority.

100



EffectiveDate No Date. The date from which the tax code lookup is effective

1/1/2014

ExpiryDate No Date. The date on which the tax code lookup expires

31/12/2015

IsAccrual No Boolean. Specifies whether this tax needs to be accrued. Accrued taxes are not paid to the supplier, and are stored in a separate account and paid directly by the buyer.

Yes/No

TaxCode Yes String. The unique identifier of the tax code that should be applied to the line item or approvable if the above fields match


SystemCommodityCode No String. The unique internal identifier of the system commodity code

This field is available only for generic ERP systems.

12001

SystemCommodityCodeDomain

No String. The domain of the system commodity code

This field is available only for generic ERP systems.

unspsc

Import Tax Code Lookup Field MapThis task lets you import tax code lookup field maps to map the custom fields in the tax code lookup to line item fields or to change the default mapping defined for the standard tax code lookup fields.

Default tax code lookup field maps are defined in the system for standard tax code lookup fields.

The system uses this mapping information to apply indirect tax codes on requisition, invoice, and invoice reconciliation line items. The imported tax code lookup field maps are displayed on the Tax Code Lookup Field Maps page in the Tax Manager workspace. You can view, edit, activate, and deactivate these tax code lookup field maps using the user interface. Before you import tax code lookup field maps, ensure that the tax code lookups have been defined in the system.



Import Tax Code Lookup Field Map: Sample File

The table below describes the fields in the TaxCodeLookupFieldMapping.csv file required to import tax code lookup field maps. This file can be used for all ERP systems. For information on the default tax code lookup field maps defined in the system, see What are tax code lookups and tax code lookup field maps? [page 39].


LineItemType Yes String. The type of the line item – requisition, invoice, or invoice reconciliation. Valid values for this field are ariba.purchasing.core.ReqLineItem, ariba.purchasing.core.InvoiceLineItem, and ariba.purchasing.core.InvoiceReconciliationLineItem.

ariba.purchasing.core.ReqLineItem

DottedFieldPath Yes String. The dotted path of the line item field that needs to be mapped to the tax code lookup field


FieldName Yes String. The tax code lookup field for which you want to define mapping information. The value specified here must match a field name defined in the TaxCodeLookup.csv file.

ProcurementUnit

Import Tax Code Lookup Field Map for Withholding TaxesThis task lets you import tax code lookup field maps for withholding taxes to define customized mapping for the fields in the tax code lookup to line item fields of invoices and invoice reconciliation documents.

The system uses this mapping information to apply withholding tax codes on invoices and invoice reconciliation documents at the header and line item level. The imported tax code lookup field maps are displayed on the Tax Code Lookup Field Map for Withholding Taxes page in the Tax Manager workspace.

You can view, edit, activate, and deactivate these tax code lookup field maps using the user interface. Before you import tax code lookup field maps for withholding taxes, ensure that the tax code lookups have been defined in the system.


Import Tax Code Lookup Field Map for Withholding Taxes: Sample File

The table below describes the fields in the WHTLookupFieldMapping.csv file required to import tax code lookup field maps for withholding taxes. This file can be used for all ERP systems. For information on the default tax code lookup field maps defined in the system, see What are tax code lookups and tax code lookup field maps? [page 39]


ApprovableType Yes String. The approvable line item type for which you want to define the tax code lookup field map. Valid values for this field are ariba.purchasing.core.InvoiceLineItem and ariba.purchasing.core.InvoiceReconciliationLineItem.

ariba.purchasing.core.InvoiceReconciliationLineItem

DottedFieldPath Yes String. The dotted path of the line item field that needs to be mapped to the tax code lookup field

SupplierLocation

FieldName Yes String. The tax code lookup field for which you want to define mapping information. The value specified here must match a field name defined in the TaxCodeLookup.csv file.

SupplierLocation



Import Tax Rates By Tax Code LookupThis task defines the tax rate lookup using the tax code table. It reads data from the TaxRateLookupByTaxCode.csv file.

TaxRateLookupByTaxCode.csv: PeopleSoft Example

TaxRateLookupByTaxCode.csv has six columns: SETID_TAX_CD_, TAX_PCT, SETID, Rank, EFFDT, and TAX_TYPE.

Following is an example of TaxRateLookupByTaxCode.csv for PeopleSoft:

UTF8 SETID_TAX_CD_,TAX_PCT,SETID,Rank,EFFDT,TAX_TYPE FEDRL:ALC,0.02500000,FEDRL,0,1/1/1900,SUTTaxFEDRL:BOS,0.05000000,FEDRL,0,1/1/1900,SUTTaxFEDRL:CA,0.06000000,FEDRL,0,1/1/1900,SUTTax FEDRL:CCC,0.01500000,FEDRL,0,2/25/2002,SUTTax

TaxRateLookupByTaxCode.csv: SAP Example

TaxRateLookupByTaxCode.csv has seven columns: Rank, TaxCode, Country, TaxType, Plant, TaxRate, and EffectiveDate.

Following is an example of TaxRateLookupByTaxCode.csv for SAP:

UTF8 Rank,TaxCode,Country,TaxType,Plant,TaxRate,EffectiveDate 0,I0,US,SalesTax,,0,Wed Mar 01 00:00:00 GMT+05:30 20000,I1,US,SalesTax,3000,0.04,Wed Mar 01 00:00:00 GMT+05:30 20000,I1,US,SalesTax,3002,0.06,Wed Mar 01 00:00:00 GMT+05:30 20000,I1,US,SalesTax,3500,0.0625,Wed Mar 01 00:00:00 GMT+05:30 20000,U0,US,UseTax,,0,Wed Mar 01 00:00:00 GMT+05:30 20000,U1,US,UseTax,3000,0.04,Wed Mar 01 00:00:00 GMT+05:30 20000,V1,JP,VATTax,,0.05,Wed Mar 01 00:00:00 GMT+05:30 2000 0,V0,JP,VATTax,,0,Wed Mar 01 00:00:00 GMT+05:30 2000

TaxRateLookupByTaxCode.csv: Generic Example

TaxRateLookupByTaxCode.csv has seven columns: Rank, TaxCode, TaxType, TaxRate, EffectiveDate, TaxName, and PurchasingUnit.

Following is an example of TaxRateLookupByTaxCode.csv for Generic:

UTF8 Rank,TaxCode,TaxType,TaxRate,EffectiveDate,TaxName,PurchasingUnit Tax and charge configurationTax and charge configuration data import files PUBLIC 75

0,CA - Sales Tax,SalesTax,0.0825,Wed Mar 01 00:00:00 GMT+05:30 2000,CA - Sales Tax,600:OU0,CA VAT TAX,VATTax,0.05,Wed Mar 01 00:00:00 GMT+05:30 2002,CA VAT TAX,600:OU 0,SEN SALES TAX10,SalesTax,0.1,Wed Mar 01 00:00:00 GMT+05:30 2000,SEN SALES TAX10,600:OU

Import External Tax Calculation Providers

The Import External Tax Calculation Providers task specifies the company codes and the approvable documents associated with the company codes for which taxes need to be determined in third-party tax calculation systems.

This task uses the TaxCalculationProvider.csv file to import the details of the external tax calculation providers and the company codes eligible for external tax calculation.

Import External Tax Calculation Providers: sample files

Sample excerpts of the TaxCalculationProviderExport.csv file show the data to import for defining third-party tax calculation systems if your site is integrated with them.

Sample TaxCalculationProviderExport.csv file format for SAP variants

The following table describes the fields in the TaxCalculationProviderExport.csv file for sites integrated with SAP ERP:

Field name Required Type and description Sample value

COMPANYCODE

NoteWe recommend that you define the mappings for SAP ERP-integrated sites based on the company code, instead of the PROCUREMENTUNIT field.

Yes String. The unique internal identifier of a company code.

3000




TAXSOURCE Yes String. The name of the third-party system that provides the tax calculation service.

ThomsonReuters or Vertex

NoteFor custom implementation, specify the value as Custom.

PROCUREMENTUNIT No String. The unique internal identifier of a purchasing unit. This value must match a purchasing unit defined in the PurchasingUnit.csv file used by the Import Purchasing Units task.

US2001

APPROVABLENAME Yes String. The approvable type for which tax can be calculated in an external tax calculation system.

ariba.purchasing.core.Requisition

Example:

"UTF-8" COMPANYCODE,TAXSOURCE,PROCUREMENTUNIT,APPROVABLENAME"3000","ThomsonReuters",,"ariba.invoicing.core.InvoiceReconciliation""3000","ThomsonReuters",,"ariba.purchasing.core.Requisition"

Sample TaxCalculationProviderExport.csv file format for PeopleSoft variants

The following table lists the fields in the TaxCalculationProviderExport.csv file for sites integrated with PeopleSoft ERP:


GLBusinessUnit Yes String. The unique internal identifier of a company code.

3000






PROCUREMENTUNIT No String. The unique internal identifier of a purchasing unit. This value must match a purchasing unit defined in the PurchasingUnit.csv file used by the Import Purchasing Units task.

US2001



Example:

"UTF-8" PROCUREMENTUNIT,GLBusinessUnit,APPROVABLENAME,TAXSOURCE"","US003","ariba.invoicing.core.InvoiceReconciliation","Vertex""","US003","ariba.purchasing.core.Requisition","Vertex"

Sample TaxCalculationProviderExport.csv file format for Generic variants

The following table lists the fields in the TaxCalculationProviderExport.csv file for sites configured as Simple Generic variants:


PROCUREMENTUNIT Yes String. The unique internal identifier of a purchasing unit. This value must match a purchasing unit defined in the PurchasingUnit.csv file used by the Import Purchasing Units task.

US2001









Example:

"UTF-8" PROCUREMENTUNIT,APPROVABLENAME,TAXSOURCE"US100","ariba.invoicing.core.InvoiceReconciliation","Vertex""US100","ariba.purchasing.core.Requisition","Vertex"

Import Company Code Tax Registration Numbers(Applicable only for sites integrated with SAP ERP) This task imports tax registration numbers for combinations of company codes and countries/regions from SAP ERP.

The Import Company Code Tax Registration Numbers task uses the CompanyCodeTaxRegistrationExport.csv file to import the tax registration numbers for company codes associated with the appropriate country codes.

Import Company Code Tax Registration Numbers: Sample File

The following table lists the fields in the CompanyCodeTaxRegistrationExport.csv file:


CompanyCode Yes String. The unique internal identifier for a company code.

3000

Country Yes String. The unique country code for a country/region.

US



TaxRegistrationNumber

Yes String. The tax registration number for the combination of company code and country.

VAT234432565

The corresponding data export task named Export Company Code Tax Registration Numbers is available on the Exports tab in the Data Import/Export task on Ariba Administrator.

Import Supplier Tax Registration NumbersThe Import Supplier Tax Registration Numbers task imports tax registration numbers for supplier-country/region combinations from the external ERP system.

This task uses the SupplierTaxRegistration.csv file to import the tax registration numbers for the suppliers based on their country codes.

Import Supplier Tax Registration Numbers: Sample File

The following table lists the fields in the SupplierTaxRegistration.csv file:


Supplier Yes String. The unique internal identifier for a supplier.

0000000001

Country Yes String. The unique country code for a unique country/region.

US


Yes String. The tax registration number for the combination of supplier and country.

VAT234432565

The corresponding data export task named Export Supplier Tax Registration Numbers is available on the Exports tab in the Data Import/Export task on Ariba Administrator.



Import States for Tax MappingThe Import States for Tax Mapping task imports the states in India for which goods and services tax (GST) information needs to be included on approvable documents.

Import States for Tax Mapping: Sample File

The Import States for Tax Mapping task uses the State.csv file to import the states and the state codes. The following table lists the fields in the State.csv file:


Country Yes String. The unique country code of the country/region to which the state belongs.

IN

Name Yes String. The name of the state. Karnataka

Uniquename Yes String. The unique internal identifier of the state based on ISO 3166-2 standards for the subdivisions or states of a country.

IN-KA

The following is a sample of the State.csv file:

"UTF-8" Country,Name,UniqueNameIN,Karnataka,IN-KAIN,Maharashtra,IN-MH IN,Tamil Nadu,IN-TN

NoteThis task is associated with a corresponding data export task under the Export tab on the Data Import/Export page on Ariba Administrator.

Import Buyer Tax Registration Numbers(Applicable for sites configured as PeopleSoft or Generic variants) This task imports tax registration numbers for combinations of buyer organization units and countries/regions from the ERP system.

The Import Buyer Tax Registration Numbers task uses the BuyerTaxRegistration.csv file to import the tax registration numbers for the organizational units associated with the appropriate country codes.


Import Buyer Tax Registration Numbers: Sample files

Sample BuyerTaxRegistration.csv file format for PeopleSoft variants

The following table lists the fields in the BuyerTaxRegistration.csv file for sites integrated with PeopleSoft ERP:


GLBusinessUnit Yes String. The unique internal identifier of a business unit.

4000

Country Yes String. The unique country for a country/region.

US


Yes String. The tax registration number for the combination of GLBusinessUnit and Country.

TXIN234432565

Example:

"UTF-8" GLBusinessUnit,Country,TaxRegistrationNumber"4000","US","TXIN234432565"

Sample BuyerTaxRegistration.csv file format for Generic variants

The following table lists the fields in the BuyerTaxRegistration.csv file for sites integrated with Generic ERP:


ProcurementUnit Yes String. The unique internal identifier of a purchasing unit. This value must match a purchasing unit defined in the PurchasingUnit.csv file used by the Import Purchasing Units task.

4000

Country Yes String. The unique country for a country/region.

US





Yes String. The tax registration number for the combination of GLBusinessUnit and Country.

TXIN234432565

Example:

"UTF-8" ProcurementUnit,Country,TaxRegistrationNumber"4000","US","TXIN234432565"

The corresponding data export task named Export Buyer Tax Registration Numbers is available in the Data Import/Export task in Ariba Administrator.


Site configuration options for charges and taxes

Some of the functionality for supplier contacts is controlled by configuration options that SAP Ariba Support sets for you. These parameters apply to SAP Ariba Buying and Invoicing and SAP Ariba Invoice Management.

Application.Charge.Enabled (set by SAP Ariba Support)This parameter specifies whether charge reconciliation is enabled in the user interface. If this parameter is set to Yes, the commands and screens associated with charge reconciliation are visible in the user interface. If this parameter is set to No, the commands and screens associated with charge reconciliation are hidden in the user interface. The default value is Yes.

Application.Charge.OverdueChargesWarningPeriod (set by SAP Ariba Support)Specifies the number of days that SAP Ariba Buying and Invoicing waits before sending an overdue charges notification message. The parameter takes an integer value. The default value is 7.

Application.Invoicing.CalculateTaxesOnNetAmount (set by SAP Ariba Support)Specifies whether line-level discounts are taken into account when percentage taxes are calculated on invoices. This parameter does not apply to invoice reconciliation (IR) documents.

● When set to Yes, percentage taxes are calculated on the invoice net amount (the invoice base amount minus the discount). The taxable amount includes the discount.

● When set to No, percentage taxes are calculated on the invoice base amount.

Application.Invoicing.AllowExportingTaxSplitAccountings (set by SAP Ariba Support)In SAP variants, specifies whether tax line split accounting is included in exported payment requests. When set to Yes, split accounting information for all tax lines in the invoice reconciliation document is included. This parameter applies to the following export tasks: Export Payment Requests, Export Payment Requests with Advance Payments, Export Payment Requests Asynchronously, Export Payment Requests with Receipts Asynchronously. It’s also applicable to sites using SAP Ariba Cloud Integration Gateway.

Application.Invoicing.CXML.SendTaxCodeInIRCXML (set by SAP Ariba Support)This parameter specifies whether or not tax codes are included in the tax summary section of cXML invoice reconciliations sent to Ariba Network. If this parameter is set to Yes, the tax codes are included in the tax summary. This parameter only applies to SAP-integrated sites where Application.Invoicing.SendIRtoAN is set to Yes. The default value is No.

Application.Invoicing.EnableTaxesOnShippingAndHandlingItems (set by SAP Ariba Support)This parameter specifies whether or not users can add shipping and special handling lines on invoices and specify taxes for those lines. When this parameter is set to Yes, the Add Shipping Item and Add Special Handling Item buttons appear on the Add Items page when users are creating invoices. To add taxes to a shipping or special handling line, the user selects Add Taxes at Line Level, which causes the Add Taxes button to appear next to each line. The default setting is No.



RestrictionTaxes cannot be added to charges at header-level.

Application.Invoicing.IgnoreZeroHeaderTax (set by SAP Ariba Support)This parameter specifies whether zero amount header level tax lines are allowed on cXML invoices. When this parameter is set to Yes, zero amount tax lines are not created at the header level. The default value is Yes.

Application.Invoicing.TaxIDDomains (set by SAP Ariba Support)

This parameter is a comma-separated list of strings that defines list of the valid tax identification (ID) domains for the invoicing site. The value can be any string token that represents a type of tax ID, such as vatID, gstID, hstID, federalTaxID, stateTaxID, or provincialTaxID. The default value is: vatID, gstID, supplierTaxID

If a supplier sends an invoice with tax ID other than this, for example, hstID, the system takes the default tax set on your realm using Application.Invoicing.DefaultTaxTypeName parameter.

Application.Invoicing.UseTLCTaxEngine (set by SAP Ariba Support)

This parameter is used to specify if you want to use the enhanced tax computation engine or a third-party tax calculation engine for taxes applied on invoices.

NoteIf Application.Invoicing.CopyTaxCodesFromInvoiceToIR is set to Yes, the tax code on an invoice tax line is copied to the corresponding IR tax line regardless of whether the site is using the enhanced tax computation engine.

Application.Procure.EnableTaxesChargesAndDiscount (set by SAP Ariba Support)

This parameter is used to enable or disable the support for adding taxes, charges, and discount to requisitions and purchase orders. If set to Yes, taxes are automatically applied to requisition line items and copied to purchase orders, and users can view and edit taxes, charges, and discounts on requisition line items.

If your site includes SINV-6818, PO-based defaulting of taxes, charges, and discounts on manual invoices, this parameter must be to Yes.

Application.Procure.CopySplitAccountingForDeductibleTaxWithoutAccounting (set by SAP Ariba Support)

Specifies whether the split accounting information for a line item on an approvable document (requisition or invoice reconciliation document) is copied to its child tax line, if the tax code applied to the line item includes a deductible tax component that does not have any accounting information.

If set to No, users must manually enter the accounting information for a child tax line associated with a line item on an approvable document if the deductible tax component applied to the parent line does not include any accounting information.

The default value of this parameter is No.

Application.Procure.EnableTaxCalculationInExternalSystems (set by SAP Ariba Support)This parameter specifies whether taxes are calculated for approvable documents, such as requisitions and invoice reconciliations in a third-party tax calculation system integrated

Tax and charge configurationSite configuration options for charges and taxes PUBLIC 85

with the SAP Ariba solution. If set to Yes (enabled), taxes are calculated for the approvable documents when tax managers initiate tax calculation for the documents or when users submit the documents for approval.


This parameter must be enabled along with the Application.Procure.EnableTaxesChargesAndDiscount parameter to ensure that taxes for requisitions are calculated in third-party tax calculation systems.

Application.Invoicing.UseNativeTaxEngineForWithholdingTax (set by SAP Ariba Support)

Specifies whether withholding taxes for invoice reconciliation documents are calculated natively using the enhanced tax computation engine, while the SAP Ariba solution is configured to calculate indirect taxes for such documents using tax information in third-party tax calculation systems.

NoteTogether with this parameter, the following parameters must also be enabled:

● Application.Tax.Enabled: To enable calculation of taxes for the line items on invoices during invoice reconciliation.

● Application.Procure.EnableTaxCalculationInExternalSystems: To allow calculation of indirect taxes for invoice reconciliation documents using tax data in external systems.

Application.Procure.IncludeCountrySpecificTaxInformation (set by SAP Ariba Support)

Specifies whether approvable documents, such as requisitions and invoices must include tax information applicable for a specific country/region. For example, goods and services tax (GST) for India.


Related Information

Self-service site configuration parameters for charges and taxes [page 87]



Self-service site configuration parameters for charges and taxes

Generate default withholding tax at the header level [page 87]

Include a Tax Code option for invoice tax entry [page 88]

Process tax accrual payments [page 88]

Default tax type for invoices [page 89]

Copy tax codes from invoice to IR document [page 90]

Third-party tax calculation for buying and invoicing [page 90]

Enhanced third-party tax calculation for invoicing [page 91]

Calculate tax for SAP Fieldglass invoices [page 92]

Show accounting info for tax line items on invoices [page 92]

Related Information

Site configuration options for charges and taxes [page 84]

Generate default withholding tax at the header level

By default, computed withholding taxes are added at the header level of invoice reconciliation documents. If this parameter is set to No, withholding taxes are added at the line level instead. This parameter is applicable if the parameter Application.Invoicing.UseTLCTaxEngine is set to Yes.

ID Application.Invoicing.DefaultWithholdingTaxOnIRHeader

Name Generate default withholding tax at the header level

Default value No

The parameter Application.Invoicing.UseTLCTaxEngine, which SAP Ariba sets for you, specifies whether to use the enhanced tax computation engine or a third-party tax calculation engine for taxes applied on invoices. To change the setting, have your Designated Support Contact (DSC) submit a Service Request (SR).

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager workspace.

Tax and charge configurationSelf-service site configuration parameters for charges and taxes PUBLIC 87

Related Information

Intelligent Configuration Manager administration

Include a Tax Code option for invoice tax entryDetermines whether users can add a tax based on tax code when entering an invoice. If set to Yes, the field for adding a tax to an invoice lets users choose either Tax Type or Tax Code. If set to No, taxes are always based on tax type.

ID Application.Invoicing.EnableInvoiceTaxBasedOnTaxCode

Name Include a Tax Code option for invoice tax entry

Default value Yes

● When this parameter is set to Yes, the Add Tax page for an invoice includes a Tax field where users choose either Tax Type or Tax Code.

● When set to No, the Add Tax page doesn't include a Tax field for choosing Tax Type or Tax Code. Taxes added to the invoice are always based on tax type.


Related Information


Process tax accrual paymentsWhen set to Yes, tax difference is accrued for invoice exceptions listed in the parameter Invoice exception types for accrued tax payments (Application.Invoicing.TaxAccrualExceptions) if the computed tax amount is more than invoice tax, and the invoice exception handler disputes the invoice tax amount by accepting the expected tax amount. Payment request documents contain accrual tax amounts.

ID Application.Invoicing.ProcessPaymentsForTaxAccrual

Name Process tax accrual payments

Default value Yes

When set to No, tax difference is not accrued.




https://help.sap.com/viewer/84aed0a9bb334008bab2519aadb5d820/cloud/


.

Related Information


Default tax type for invoicesSpecifies the default tax type to use on invoices when the cXML invoice doesn't include a tax category. The tax type name you specify must be a tax type that exists in your site. To get the unique names, export your tax type mappings.

ID Application.Invoicing.DefaultTaxTypeName

Name Default tax type for invoices

Default value sales

This parameter is applicable to invoices received from Ariba Network.

To export tax type mappings so you know what the valid choices are, choose Manage Core Administration , choose Site Manager Data Import/Export , and run the Export Tax Type Mappings task. Tax type names are defined in the Name column of the file TaxTypeMap.csv.

For more information about tax types and tax type mappings, see:

● Import Tax Types [page 55]● Import Tax Type Mappings [page 56]


Related Information





Copy tax codes from invoice to IR documentDetermines whether the tax codes for tax lines on invoice reconciliation (IR) documents originate from the corresponding tax line on the invoice.

ID Application.Invoicing.CopyTaxCodesFromInvoiceToIR

Name Copy tax codes from invoice to IR document

Default value No

Possible values for this parameter are Yes and No.

● If set to Yes, the tax code on an invoice tax line is copied to the corresponding IR tax line. If there's no valid tax code that matches the invoice line, tax calculation fails on the IR.If an invoice tax line has no tax code specified, the tax code for the IR is determined by a tax code lookup.

● If set to No (the default), the tax code on the IR might be different from that on the invoice. The tax code is calculated using a lookup. The lookup used depends on which tax computation engine your site is using, as determined by Application.Invoicing.UseTLCTaxEngine.

NoteIf the tax code on an IR is different from what’s expected, it might be because the site’s tax configuration needs correcting. Address any tax configuration issues before you consider setting this parameter to Yes.


Related Information


Third-party tax calculation for buying and invoicingSpecifies if your site is integrated with a third-party tax calculation engine to calculate taxes for approvable documents such as requisitions and invoice reconciliations. If set to Yes, taxes are calculated when tax managers initiate tax calculation for the documents or when users submit the documents for approval. If set to Yes, you can set another parameter to turn on enhanced third-party tax calculation for invoicing, Application.Procure.EnhancedTaxCalculationInExternalSystems.

ID Application.Procure.EnableTaxCalculationInExternalSystems

Name Third-party tax calculation for buying and invoicing

Default value No

If you set this parameter to Yes, we recommend that the parameter Application.Procure.EnableTaxesChargesAndDiscount be set to Yes to ensure that taxes for requisitions



https://help.sap.com/viewer/6a27fe00d026420283fa8185e78d305c/cloud/en-US/c9f996fb54b148038ed183d4aba4fc89.html

are calculated in the third-party tax calculation engine. SAP Ariba sets Application.Procure.EnableTaxesChargesAndDiscount for you.


Related Information

Intelligent Configuration Manager administrationEnhanced third-party tax calculation for invoicing [page 91]Third-party tax calculation overview [page 8]

Enhanced third-party tax calculation for invoicingOn sites integrated with a third-party tax calculation engine, specifies if tax calculation includes enhanced tax information for reconciliation and payment processes. Enhancements include improved handling of summary and granular tax details, buyer-payable taxes, and accrual taxes. Applicable if Third-party tax calculation for buying and invoicing (Application.Procure.EnableTaxCalculationInExternalSystems) is set to Yes.

ID Application.Procure.EnhancedTaxCalculationInExternalSystems

Name Enhanced third-party tax calculation for invoicing

Default value No


Related Information

Intelligent Configuration Manager administrationThird-party tax calculation for buying and invoicing [page 90]Third-party tax calculation overview [page 8]Enhanced third-party tax calculation for invoices [page 10]


https://help.sap.com/viewer/009918e7fb2a435bb2f68ce957c9755f/cloud/en-US

https://help.sap.com/viewer/009918e7fb2a435bb2f68ce957c9755f/cloud/en-US

Calculate tax for SAP Fieldglass invoicesDetermines whether tax calculation applies to SAP Fieldglass invoices. Set this parameter to Yes to ensure that invoice reconciliation documents for Fieldglass invoices include applicable tax codes. This parameter applies to sites using the enhanced tax computation engine.

ID Application.Invoicing.CalculateTaxForFieldglassInvoices

Name Calculate tax for SAP Fieldglass invoices

Default value No

Possible values for this parameter are Yes and No.

● If set to Yes, taxes on Fieldglass invoices are calculated during the reconciliation process. The invoice reconciliation document includes the resulting tax codes.Taxes on Fieldglass invoices are always calculated with the enhanced tax computation engine. Third-party tax calculation isn't supported for Fieldglass invoices.

● If set to No, taxes on Fieldglass invoices aren't calculated during the reconciliation process. Invoice reconciliation documents for Fieldglass invoices don't include tax codes.

Regardless of the parameter setting, no exceptions are raised for Fieldglass invoices.

This parameter is applicable when the parameter Application.Invoicing.UseTLCTaxEngine is set to Yes. This parameter controls the enhanced tax computation engine.


Related Information

Intelligent Configuration Manager administrationCopy SAP Fieldglass invoices to ERP

Show accounting info for tax line items on invoicesSpecifies whether to show or hide accounting fields for tax line items on invoices and invoice reconciliation documents. This parameter applies to sites integrated with an SAP ERP system.

ID Application.Invoicing.ShowAccountingForTaxLineItems

Name Show accounting info for tax line items on invoices

Default value Yes





https://help.sap.com/viewer/7e1b0896fbe64bc8b5567268d02e5ce7/cloud/en-US/70be4b5c44264d03aaded0ad1c0caadf.html

Related Information




Ariba Network tax-related invoice rules

Your Ariba Network account has business rules to help your suppliers submit error-free invoices. Following are some of the key rules that can impact tax configurations in your SAP Ariba solution.

For a complete list of Ariba Network invoicing rules, see Invoice rule reference.

● Copy tax from purchase order to invoice.● Line item tax on invoice is view-only. (If you enable the rule Copy tax from the purchase order to the

invoice, and you disable the rule Line item tax on invoice is view-only, then suppliers can modify the tax informationon the purchase order.)

● Allow suppliers to add allowances and charges to invoices.● Require suppliers to choose from your list of valid tax values. (If you enable this rule, you must configure

valid tax types and rates in your Ariba Network account).● Allow suppliers to create a tax rate and type for invoices and credit memos. (If you allow supplier to create

their own tax types and rates, and if a tax type is not defined in your system, the default tax type will be applied).

● Allow suppliers to add shipping and special handling costs and tax details as separate invoice lines.● Require suppliers to enter taxes at line item level. (If this rules is unchecked, then suppliers can enter taxes

at the header or line level.)● Require tax amounts in local currency. (VAT is required in either the buyer’s or supplier’s local currency.

When this rule is checked, Ariba Network requires the supplier to choose the buyer’s currency when generating invoices.)

● Allow suppliers to change Ship To information as shown on purchase orders. and Allow Ship To information in BPOs to be changed in invoices. (Allowing suppliers to change the Ship-To address might result in tax variance invoice exceptions if taxes are calculated on orders, and the ship to address change results in a different tax rate based on your tax tables configuration.)


Ariba Network tax-related invoice rules

https://help.sap.com/viewer/df996b7f6947439ea45b8612e47571f5/cloud/en-US/dd3257d8f0181014bbefc3f3f1429da5.html

Configuration steps for third-party tax calculation

A member of the Customer Administrator group ensures that the SAP Ariba Buying and Invoicing site is set up for third-party tax calculation. The following table provides an overview of the steps required.

Table 4: Configuration steps to integrate with third-party tax calculation engines

Step Description and considerations Topics with more information

Implementation planning

Plan your configuration Make a plan that includes the order in which the configuration steps are performed, the data needed for each system, and primary contacts from each team.


Tax information data setup requirement [page 51]

Ensure that the buying organization meets the requirements for this feature before beginning implementation.

Your organization must have an agreement with a third-party tax provider organization to integrate with their calculation engine for management of taxes.

Feature enablement

Turn on the features for third-party tax calculation.

The administrator for SAP Ariba Buying and Invoicing sets the following parameters in Intelligent Configuration Manager:

● Third-party tax calculation for buying and invoicing (Application.Procure.EnableTaxCalculationInExternalSystems)

● (Optional) Enhanced third-party tax calculation for invoicing (Application.Procure.EnhancedTaxCalculationInExternalSystems)




(SAP Ariba step) Set the site configura-tion parameters that determine tax calculation.

An SAP Ariba representative sets additional parameters.

Site configuration options for third-party tax calculation [page 101]

Master data preparation

Tax and charge configurationConfiguration steps for third-party tax calculation PUBLIC 95




Map data for tax calculation Administrators for SAP Ariba Buying and Invoicing and the ERP system ensure that you have mapped the company codes and the approvable types (requisitions and invoice reconciliation documents) that must undergo tax calculation in the third-party tax calculation engine.


Synchronize tax types and tax codes The tax types and tax codes must be synchronized across SAP Ariba Buying and Invoicing, the ERP system, and the third-party tax calculation engine.




Import the tax-related data required for this feature

A member of the Tax Manager or the Customer Administrator group completes the following data import tasks:

● Import Tax Types● Import Tax Type Mappings● Import Tax Components● Import Tax Codes● Import Tax Code Lookup

(Required if tax calculation for either requisition or invoice reconciliation is performed natively using the enhanced tax computation engine instead of using third-party tax calculation.)

● Import Tax Code Lookup Field Maps

(Required if tax calculation for either requisition or invoice reconciliation is performed natively using the enhanced tax computation engine instead of using third-party tax calculation.)

● Import Tax Code Lookup Field Maps for Withholding Taxes (Required if you're using a third-party tax engine that doesn't calculate withholding taxes.)

● Import Tax Rates By Tax Code Lookup

● Import External Tax Calculation Providers

● (Only for sites integrated with SAP ERP) Import Company Code Tax Registration Numbers

● (Only for sites integrated with PeopleSoft ERP or Generic ERP) Import Buyer Tax Registration Numbers

● Import Supplier Tax Registration Numbers

Import Tax Types [page 55]

Import Tax Type Mappings [page 56]

Import Tax Components [page 60]

Import Tax Codes [page 63]

Import Tax Code Lookups [page 70]

Import Tax Code Lookup Field Map [page 72]

Import Tax Code Lookup Field Map for Withholding Taxes [page 73]

Import Tax Rates By Tax Code Lookup [page 75]


Import Company Code Tax Registration Numbers [page 79]

Import Buyer Tax Registration Numbers [page 81]

Import Supplier Tax Registration Numbers [page 80]

Configure invoice exception types



Activate invoice exception type Buyer Payable Tax

Applicable to Enhanced third-party tax calculation for invoicing only.

An invoicing administrator activates the Buyer Payable Tax exception. Buyer-payable taxes are tax lines the buyer pays directly to tax authorities rather than paying the supplier. A Buyer Payable Tax exception is raised if the supplier invoice includes a tax line that the tax calculation engine marks as a buyer-payable tax.

Taxes the buyer pays directly to tax authorities [page 19]

Configure other tax-related invoice exception types as needed.

An invoicing administrator configures other invoice exception types as needed.

Invoice exception types reference

Add custom tax fields to requisitions and invoices (optional)

(SAP Ariba step) To add custom tax fields to requisitions and invoices, ask your Designated Support Contact (DSC) to log a service request.

To include custom tax fields on requisitions and invoices and also include such fields for tax calculation, SAP Ariba Support must select the Include field for external tax calculation option from the list of public customization APIs for requisitions and invoices in the ProcureLineItemCollection, Supplier, and ProcureLineItem classes. This option is available in the ad

vanced mode in the Customization

Manager Field Configuration task in Ariba Administrator.

The supported field types for custom tax fields are String, Integer, Boolean, Money, and Date.

ERP integration

Configure integration mappings. Applicable to third-party tax calculation for invoice reconciliation documents.

Build custom integration between SAP Ariba Buying and Invoicing and the ERP system. Map payment posting instructions to fields in your ERP system for payment export.

Enhanced third-party tax calculation for invoices [page 10]



https://help.sap.com/viewer/3d7b732e8f5a46f58bc6abe3d5f4dbce/cloud/en-US/187b5298b876473a87c0aed28db315b5.html


Configure end points for the Export Document Data for External Tax Calculation web service.

A member of the Integration Admin group configures end points and enables the Export Document Data for External Tax Calculation web service task in SAP Ariba Buying and Invoicing.

Export Document Data for External Tax Calculation web service [page 103]

Accept the data definition changes to the export tasks to include any new fields added to support third-party tax calculation.

A member of the Integration Admin group accepts changes to the data defini-tion for affected integration tasks under

Integration Manager Data

Definition .

Topics about managing changes to integration events

(PeopleSoft and Generic variants only, partially an SAP Ariba step) Configure your site to use the following task for payment request export: Export Payment Requests with Advance Payments and Taxes.

Applicable to Enhanced third-party tax calculation for invoicing only.

A member of the Integration Admin or Customer Administrator group config-ures the export task Export Payment Requests with Advance Payments and Taxes instead of the export task they're currently using. Configuring the task involves setting the end point (for web services), enabling the task, and disabling the task previously used.

SAP Ariba sets parameter Application.Invoicing.PayablePushEvent to PaymentRealTimeExport_v3.

About payment request data export tasks

User permissions and approval flows

Give the appropriate users permission to update taxes on requisitions and IR documents.

Applicable to third-party tax calculation for invoice reconciliation documents.

A member of the Customer Administrator or Customer User Admin group adds users to the Tax Manager and Tax Editor groups.

How to manage groups in Ariba AdministratorSAP Ariba Procurement solutions group descriptions table

Adjust approval processes as necessary A member of the Invoicing Administrator or Customer Administrator group modifies approval processes to include the Tax Manager and Tax Editor group as needed.

Approval process management guide

Communicate the tax calculation process to users


https://help.sap.com/viewer/27d44834e9164377b324539985725ecd/cloud/en-US/6bc5789ac1da1014bbabd423045a7a49.html#loio6bc5789ac1da1014bbabd423045a7a49

https://help.sap.com/viewer/27d44834e9164377b324539985725ecd/cloud/en-US/6bc5789ac1da1014bbabd423045a7a49.html#loio6bc5789ac1da1014bbabd423045a7a49

https://help.sap.com/viewer/d905cd0bd54f4cbe986290d9ee384ec2/cloud/en-US/6bf2fad4c1da1014a4559866b6d8ab53.html#loio6bf2fad4c1da1014a4559866b6d8ab53

https://help.sap.com/viewer/d905cd0bd54f4cbe986290d9ee384ec2/cloud/en-US/6bf2fad4c1da1014a4559866b6d8ab53.html#loio6bf2fad4c1da1014a4559866b6d8ab53

https://help.sap.com/viewer/e10ed2159560487bb36d1ae89a6e293a/cloud/en-US/6aa90724c1da10149e8ac135dbed5ff1.html

https://help.sap.com/viewer/e10ed2159560487bb36d1ae89a6e293a/cloud/en-US/6aa90724c1da10149e8ac135dbed5ff1.html

https://help.sap.com/viewer/424ff96352ee42ad80d5b89d48791d02/cloud/en-US/43bfe34105ce455dad855e85d43505c4.html

https://help.sap.com/viewer/424ff96352ee42ad80d5b89d48791d02/cloud/en-US/43bfe34105ce455dad855e85d43505c4.html

https://help.sap.com/viewer/095db213a1b34a17b7acc7d625c6e337/cloud/en-US/bc59829db8804662985e9af754fc0b62.html


Inform users who approve requisitions If you're using third-party tax calculation for requisitions, let users know what to expect.

Third-party tax calculation overview [page 8]

Inform users who reconcile invoices of any new processes

Applicable to Enhanced third-party tax calculation for invoicing.

Let invoice reconcilers know how to:

● View the breakdown of the expected tax amount for a line-level invoice exception

● Handle a Buyer Payable Tax exception

● View proration information for header-level taxes

Managing taxes and tax exceptions on an invoice reconciliation document

Inform tax managers and tax editors Applicable to third-party tax calculation for invoice reconciliation documents.

Let members of the Tax Manager and Tax Editor group know how to handle tax-related invoice exceptions. For more information, see Managing taxes and tax exceptions on an invoice reconciliation document.

Site configuration options for third-party tax calculation [page 101]

Export Document Data for External Tax Calculation web service [page 103]

Custom payment posting info in exported payment requests [page 108]

Tax info in payment requests with Enhanced third-party tax calculation for invoicing [page 108]

Custom fields that influence tax calculation [page 111]

Related Information

Before setting up your tax tables [page 32]Third-party tax calculation overview [page 8]Tax and charge configuration data import files [page 51]Restrictions and caveats for third-party tax calculation [page 112]Troubleshooting tips for third-party tax calculation [page 113]Sample requests and responses in third-party tax calculation [page 114]



https://help.sap.com/viewer/3d7b732e8f5a46f58bc6abe3d5f4dbce/cloud/en-US/4e572b6e246f401bb65f57aa30aabc13.html





Site configuration options for third-party tax calculation

Third-party tax calculation requires configuration.

Some of the functionality for this feature is controlled by site configuration parameters.

● Self-service parameters can be changed by your administrator in Ariba Administrator under Intelligent Configuration Manager Manage Configurations .

● Parameters and other options that are not self-service are set by SAP Ariba and require a Service Request (SR).

Parameter settings

Parameter Setting

Enhanced third-party tax calculation for invoicingApplication.Procure.EnhancedTaxCalculationInExternalSystems

This is a self-service parameter.

Yes

Third-party tax calculation for buying and invoicingApplication.Procure.EnableTaxCalculationInExternalSystems

This is a self-service parameter.

Yes

Application.Procure.EnableTaxesChargesAndDiscount

Yes

Application.Invoicing.UseNativeTaxEngineForWithholdingTax

Yes

Application.Invoicing.UseTLCTaxEngine Yes

PeopleSoft and generic variants:Application.Invoicing.PayablePushEvent

PaymentRealTimeExport_v3

To see tax exceptions on line-item credit memos, the following two site parameters must be configured:

Parameter Setting

Application.Invoicing.LineCreditMemoExceptionLineCategories

include TaxCharge


Parameter Setting

Application.Invoicing.SkipLineCreditMemoExceptions

No

Parameter descriptions

For details about the self-service parameters listed above, see:



Following are descriptions of the parameters set by SAP Ariba:

Application.Procure.EnableTaxesChargesAndDiscount (set by SAP Ariba Support)

This parameter is used to enable or disable the support for adding taxes, charges, and discount to requisitions and purchase orders. If set to Yes, taxes are automatically applied to requisition line items and copied to purchase orders, and users can view and edit taxes, charges, and discounts on requisition line items.

If your site includes SINV-6818, PO-based defaulting of taxes, charges, and discounts on manual invoices, this parameter must be to Yes.

Application.Invoicing.UseNativeTaxEngineForWithholdingTax (set by SAP Ariba Support)

Specifies whether withholding taxes for invoice reconciliation documents are calculated natively using the enhanced tax computation engine, while the SAP Ariba solution is configured to calculate indirect taxes for such documents using tax information in third-party tax calculation systems.

NoteTogether with this parameter, the following parameters must also be enabled:

● Application.Tax.Enabled: To enable calculation of taxes for the line items on invoices during invoice reconciliation.

● Application.Procure.EnableTaxCalculationInExternalSystems: To allow calculation of indirect taxes for invoice reconciliation documents using tax data in external systems.

Application.Invoicing.UseTLCTaxEngine (set by SAP Ariba Support)

This parameter is used to specify if you want to use the enhanced tax computation engine or a third-party tax calculation engine for taxes applied on invoices.

NoteIf Application.Invoicing.CopyTaxCodesFromInvoiceToIR is set to Yes, the tax code on an invoice tax line is copied to the corresponding IR tax line regardless of whether the site is using the enhanced tax computation engine.

Application.Invoicing.PayablePushEvent (set by SAP Ariba Support)



Specifies which payment export task the site uses. The setting determines which data is included payment request export. Following are the valid values:

● PaymentRealTimeExport: Enables the Export Payment Requests task. This task exports payment request details to the external system.

● PaymentRealTimeExport_v2: Enables the Export Payment Requests with Advance Payments task. This task exports payment request details including details of advance payments and Funds Management accounting information (if enabled) to the external system.

● PaymentRealTimeExport_v3: Enables the Export Payment Requests with Advance Payments and Taxes task. This task exports payment request details including details of advance payments and Funds Management accounting information (if enabled) and taxes to the external system.

Application.Invoicing.LineCreditMemoExceptionLineCategories (set by SAP Ariba Support)This legacy parameter specifies which categories of line items are validated for exceptions in line-item credit memos. It's applicable if legacy parameter Application.Invoicing.SkipLineCreditMemoExceptions is set to No. Administrators can now configure this functionality themselves in the Invoice Exception Types UI. To fully enable customer configuration:

● Set Application.Invoicing.SkipLineCreditMemoExceptions to No.● Add all categories to

Application.Invoicing.LineCreditMemoExceptionLineCategories. Valid values (not case sensitive): RegularLine, HandlingCharge, SpecialCharge, Discount, FreightCharge, TaxCharge, WHTTax

● Configure the desired behavior in the Invoice Exception Types UI in Ariba Administrator.

Application.Invoicing.SkipLineCreditMemoExceptions (set by SAP Ariba Support)This legacy parameter specifies whether line-level credit memos raise exceptions during invoice reconciliation. Administrators can now configure this functionality themselves in the Invoice Exception Types UI. To fully enable customer configuration:

● Set Application.Invoicing.LineCreditMemoExceptions to No.● Add all categories to

Application.Invoicing.LineCreditMemoExceptionLineCategories.● Configure the desired behavior in the Invoice Exception Types UI in Ariba

Administrator.

Export Document Data for External Tax Calculation web serviceThe Export Document Data for External Tax Calculation web services task exports data from approvables such as requisitions and invoice reconciliation (IR) documents to a third-party engine for calculation of taxes.

This task sends tax-determining fields to the third-party tax calculation engine based on which taxes need to be calculated for a requisition or an IR document.


The third-party tax calculation engine calculates taxes and sends payment posting instructions.

The SAP Ariba solution sends a tax calculation request when any of the following actions occur:

● A user clicks the Update Taxes button on a requisition.● The SAP Ariba solution creates an IR document.● A user clicks the Recalculate Taxes button on an IR document.● A user submits a requisition or IR document for approval.● A user approves a requisition or an invoice reconciliation document.● An IR document is fully approved.

For information about the WSDL elements included in requests sent to the tax calculation engine and in responses from the tax calculation engine, view the WSDL for the Export Document Data for External Tax Calculation task. In Ariba Administrator, choose Integration Manager Integration Configuration , find and open the task, and click View WSDL.

Enhanced third-party tax calculation for invoicing

Enhanced third-party tax calculation changes the web service requests and responses that are part of the Export Document Data for External Tax Calculation web services task.

Table 5: Additional elements in requests sent to the tax calculation engine

Element Description Possible values

RequestType Tells the tax calculation engine what information to return: tax calculations for the invoice reconciliation or tax payment details that SAP Ariba Buying and Invoicing will send to the ERP system.

TaxCalculation: returns the tax calculation for the invoice reconciliation.

ERPPosting: returns the tax payment details.

IsRetry In ERPposting requests, IsRetry indicates whether this is the first posting request the tax calculation engine has received for this IR document.

The IsRetry element provides a way to handle situations in which payment fails, such as when the ERP system rejects the payment. After payment fails, the invoicing user can edit the IR document and resubmit it. When the IR document goes through the workflow again, SAP Ariba Buying and Invoicing requests the payment posting instructions a second time.

● true: either SAP Ariba Buying and Invoicing previously received a success response from the tax calculation engine for an ERPPosting, or there was an unexpected error (such as a network connection error) while transmitting the request or response.

● false: either this is the first time SAP Ariba Buying and Invoicing is sending this ERPPosting request, or SAP Ariba Buying and Invoicing received an error response from the tax calculation engine previously.

DocumentSubType The type of invoice document. standard, lineLevelCreditMemo, creditMemo, lineLevelDebitMemo




For line-item credit and debit memos: RelatedDocument

Holds the unique name of the IR document associated with the original invoice that the line-item credit memo or debit memo is for.

IR1234

For line-item credit and debit memos: RelatedDocumentDate

The invoice date of the original invoice referenced in the RelatedDocument field. Applicable to line-item credit memos and line-item debit memos. Sending the invoice date of the original invoice ensures the correct tax calculation.

2020-04-14T20:09:00Z

For each item: ShipFromAddress Holds the ship from address for the item. Some buyers use the ship from address to indicate whether tax for the item is payable by the buyer.

Same as other address fields.

In address elements: Line1, Line2, Line3

All address elements (ship from, ship to, billing, and supplier location) include these additional lines to hold complete address information for more accurate tax calculation.

Examples: street address, apartment number, suite number.

In the LineType element: Category The line category specified for the invoice line, represented by an integer.

-1 (catalog item)2 (tax)4 (shipping)8 (handling charge)16 (special category)32 (discount)64 (withholding tax)

SupplierID A unique ID for the supplier. The unique name of the partitioned supplier is used for this.

sid567

In the Parent element: NumberInCollection

The sequence number of the line's parent line on the invoice, relative to other lines in same collection. The combination of item.NumberInCollection and item.Parent.NumberInCollection identifies the line by sequence.

<Parent><NumberInCollection>1</NumberInCollection></Parent>

See also Sample requests and responses in third-party tax calculation [page 114].

OriginalSupplierAmount The amount specified on the original invoice. This element is included for all line amounts sent to the tax calculation engine.

100.00

25



For each material line: Taxes element Applicable when RequestType is ERPPosting. Holds the tax information for the material line on the approved IR document. Both requests and responses send tax information with each line item.

The Taxes element includes:

● TaxType: The tax type. This element already existed.

● OriginalSupplierAmount: Holds the actual tax amount from the supplier's invoice.

● FinalAmount: The final tax amount in the approved IR document.Comparing OriginalSupplierAmount with FinalAmount reveals whether the tax manager performed an action that changed the amount.

If the invoice includes taxes at the header level, the Taxes section holds the prorated values for each line.

See Sample requests and responses in third-party tax calculation [page 114].

The response from the tax calculation engine, TaxServiceAPIResponse, has two sections for each item inside ExternalTaxItem:

● TaxComponents (optional): contains the breakdown of granular tax details during the reconciliation call, which is when initial tax calculation happens. It is ignored during posting call. The purpose of this element is to allow the tax calculation engine to send a summary tax amount while also sending the detailed tax breakdown.

● PostingComponents: contains detailed payment posting instructions during the posting call, which happens after the IR document is approved. It is ignored during the reconciliation call.

Table 6: Additional elements in responses from the tax calculation engine

In the ExternalTaxItem element: TaxComponents

An optional element that holds details about the jurisdictional breakdown of the tax. Some possible elements within TaxComponents are:

● TaxAmount● Description● TaxableAmount

In responses to TaxCalculation requests, holds the calculated taxes for the material line.




IsBuyerPayableTax Indicates whether tax for this line item is a buyer-payable tax.

True

False

In the ExternalTaxItem element: PostingComponents

In responses to ERPPosting requests, holds payment posting information for the jurisdiction-level breakdown of the tax. Possible elements within PostingComponents:

● TaxAmount● TaxableAmount● FormulaString: the tax calcula

tion engine's description of the tax.

● TaxCode: usually specified at line level, but can be specified for each item in PostingComponents.

● PostingInstructions: instructions for paying the tax line. Possible elements within PostingInstructions:AccountInstruction: Exported to the ACCOUNT_INSTRUCTION field.TaxAuthority: the tax authority to be paid. Exported to the TAX_AUTHORITY field.TXJCD: the tax jurisdiction code associated with the tax. Exported to the TAX_JURISDICTION field.IsAccrual: Boolean specifying whether the tax amount is to be accrued.


Related Information

Enhanced third-party tax calculation for invoices [page 10]


Custom payment posting info in exported payment requestsWith third-party tax calculation for invoices, you can have additional, custom payment posting information included in exported payment requests.

● The third-party tax calculation engine can pass additional payment posting instructions to custom fields in your SAP Ariba solution.

● The SAP Ariba solution can include the custom fields in exported payment requests.

Adding custom fields for additional payment posting instructions requires an SAP Ariba customization. For more information, have your Designated Support Contact (DSC) submit a Commercial Request with your SAP Ariba Customer Engagement Executive or Account Manager. When SAP Ariba finishes the customization, remember to accept changes to the data definition for the Export Payment Requests task. Also, prepare your ERP system to consume the new field.

The customization involves creating a new expression-based field under TaxDistribution. The following excerpt shows a sample customization for transferring custom key-value pairs from the posting call response to the exported payment request:

<inClass name="ariba.invoicing.core.TaxDistribution"> <derived> <field expression="getPostingInstruction("PostingKey")" name="cus_PostingKey"> <type class="java.lang.String" length="100"/> <properties label="PostingKey"/> <templates> <template name="StringField" operator="add"/> <template name="PaymentExportableField" operator="add"/> </templates> </field> </derived> </inClass>

With this example, the column name in the PaymentTaxExport.csv file is InvoiceReconciliation_TaxDistributionVector_cus_PostingKey.

Tax info in payment requests with Enhanced third-party tax calculation for invoicingOn sites using Enhanced third-party tax calculation for invoicing, exported payment requests include payment posting instructions for accruals.

When the reconciled invoice has a tax accrual (for example, a tax line with an Under Tax Variance exception that the tax manager disputed), payment posting instructions from the tax engine include tax authority information for the accrual.

The payment instructions can include distribution of the accrual among multiple tax authorities. For example, a sales tax accrual amount of 5 might be split, with 2 for a city tax authority and 3 for a state tax authority. This breakdown of accrued taxes at the line level is included in exported payment requests.



NoteIf there's no accrual amount to send, the third-party tax calculation engine sends an accrued tax amount of 0. Also, SAP Ariba Buying and Invoicing doesn't validate accrual information from the tax engine.

Tax accrual payment instructions from the tax engine (SAP variants)

NoteOn sites that use the standard Third-party tax calculation for buying and invoicing feature, the following tax payment fields were populated by values in SAP Ariba Buying and Invoicing, not values from the third-party tax engine.

File channel: column in PaymentTaxExport.csv

Web services: element in Payment_PaymentTaxExport_Item

Populated by this element in ExternalTaxItem.PostingComponents WSDL from tax engine

IS_ACCRUAL <IsAccrual> PostingInstructions.IsAccrual

ACCRUAL_TAX_AMOUNT <AccrualTaxAmount><Amount> TaxAmount (for lines where PostingInstructions.Name = IsAccrual and PostingInstructions.Value = true)

ACCOUNT_INSTRUCTION <AccountInstruction> PostingInstructions.Name.AccountInstruction

TAX_AUTHORITY <TaxAuthority> PostingInstructions.Value.TaxAuthority

TAX_JURISDICTION <TXJCD> PostingInstructions.Value.TaxJurisdiction

Tax accrual payment instructions from the tax engine (PeopleSoft and Generic variants)

SAP Ariba sites configured as PeopleSoft or Generic variants have a payment request export task specifically for third-party tax integration.

Export Payment Requests with Advance Payments and Taxes exports payment request details, including details of advance payments, Funds Management accounting information (if enabled) and taxes to the ERP system. This task is similar to the task Export Payment Requests with Advance Payments, except it includes tax details in a separate CSV file (PaymentTaxExport.csv) or web services element (<Payment_PaymentTaxExport_Item>).


Table 9: Exported tax accrual details in PeopleSoft variants


Web services: element in <Payment_PaymentTaxExport_Item>


IS_ACCRUAL <IsAccrual> PostingInstructions.IsAccrual

ACCRUAL_TAX_AMOUNT <AccrualTaxAmount><Amount> TaxAmount (for lines where PostingInstructions.Name = IsAccrual and PostingInstructions.Value = true)

ACCOUNT_INSTRUCTION <AccountInstruction> PostingInstructions.Name.AccountInstruction

TAX_AUTHORITY <TaxAuthority> PostingInstructions.Value.TaxAuthority


Table 10: Exported tax accrual details in Generic variants


Web services: element in <Payment_PaymentTaxExport_Item>


IsAccrual <IsAccrual> PostingInstructions.IsAccrual

AccrualTaxAmount <AccrualTaxAmount><Amount> TaxAmount (for lines where PostingInstructions.Name = IsAccrual and PostingInstructions.Value = true)

AccountInstruction <AccountInstruction> PostingInstructions.Name.AccountInstruction

TaxAuthority <TaxAuthority> PostingInstructions.Value.TaxAuthority


Tax source field indicates where taxes were calculated

The Export Payment Requests task includes a field in the payment request header to indicate where the taxes were calculated.

● For the file channel, the file PaymentHeaderExport.csv has a column called TAX_SOURCE.● For the web services channel, the InvoiceReconciliation element includes a field called TaxSource.



Possible tax source values are:

● ETE: taxes were calculated by a third-party, or external, tax engine.● ARIBA: taxes were calculated using tax tables defined in SAP Ariba Buying and Invoicing.

Related Information

Enhanced third-party tax calculation for invoices [page 10]Configuration steps for third-party tax calculation [page 95]

Custom fields that influence tax calculationSAP Ariba can configure custom fields to be taken into account during tax calculation. These fields are sometimes referred to as tax-determining fields or tax influencer fields. Custom tax influencer fields are included in tax calculation requests sent to the tax calculation engine.

For example, some governments give a tax break to businesses set up in a Special Economic Zone (SEZ). Organizations inside a SEZ can configure their IR documents to include a custom field that conveys this information to the third-party tax calculation engine. Every tax calculation request will include that SEZ field so the tax break gets applied.

To turn a custom field into a tax influencer field, SAP Ariba Support chooses Include field for external tax calculation on the Advanced tab of field configuration. After that, the buyer must accept changes to the data definition for the payment request export event they're using.

Custom tax-determining fields use a template field called TaxInfluencer. Sites using third-party tax calculation support the use of the TaxInfluencer template with custom fields but not with standard (default) fields. Using TaxInfluencer with standard fields causes a change to the WSDL used for communicating with the tax calculation engine.

NoteThe addition of custom tax influencer fields must be discussed and agreed upon by all entities involved: the buyer, SAP Ariba, and the third-party tax organization.


Restrictions and caveats for third-party tax calculation

● When SAP Ariba Buying and Invoicing is integrated with a third-party tax calculation engine, the tax information displayed in the user interface is from the third-party tax organization you have an agreement with.

● All tax information is advisory only.● On the invoice reconciliation (IR) document, you can't manually overwrite the values sent by the tax calculation

engine. If you think the tax information is incorrect, contact the third-party tax organization, explain the issue, and have them check your configuration.

● Externally calculated taxes are applied for all line items on requisitions and invoice reconciliation documents. You cannot choose specific line items on the documents and apply taxes on them.

● This feature doesn't support header-level credit memos.● A single IR document can't use a combination of both third-party and SAP Ariba tax tables. All IR lines are

subject to the same tax calculation engine.● Advance payments are not applied to taxes.

Caveats specific to Enhanced third-party tax calculation for invoicing

● In certain instances, there might be a variation in the tax types and amounts you see in the user interface and the taxes that are eventually transferred to your ERP system. This is because the tax engine further refines the tax information based on the action taken by your AP team during invoice reconciliation.

● This feature requires custom data mappings between SAP Ariba Buying and Invoicing and your ERP system. No native integration is available at this time.This feature is supported by SAP Ariba cloud integration 9.0 or later. SAP Ariba Cloud Integration Gateway does not support this feature at this time.


Restrictions and caveats for third-party tax calculation

Troubleshooting tips for third-party tax calculation

Third-party tax calculation error messages let you know whether to contact SAP Ariba or your tax provider if issues occur in sending tax information.

When the ERP system fails to import payment information

When the ERP system imports payment information from SAP Ariba Buying and Invoicing, if there is a failure on the ERP side, the corresponding IR document in SAP Ariba Buying and Invoicing gets a status of Paying Failed. When this happens, SAP Ariba Buying and Invoicing resends the IR document to the tax calculation engine to refresh the payment posting instructions.

Invoice exceptions for failed tax calculations

If there's an error during the tax calculation call, SAP Ariba Buying and Invoicing adds a temporary tax line to the header of the invoice reconciliation (IR) document, and Tax Calculation Failed exception is raised on that line. The temporary tax line is Sales tax (auto-generated).

When this happens, click Recalculate Tax to start the tax calculation call again. If tax calculation is successful this time, the Tax Calculation Failed exception is cleared, and the temporary line is removed.

The Recalculate Tax button is always available on sites that support third-party tax calculation.

If the error is on the SAP Ariba side, the SAP Ariba Buying and Invoicing solution retries the tax calculation call automatically when the IR document is loaded.

Tax calculation failures might be due to incorrect data in tax tables. If you think that's the case, contact your tax provider.

Tax and charge configurationTroubleshooting tips for third-party tax calculation PUBLIC 113

Sample requests and responses in third-party tax calculation

View sample requests and responses to get an idea of how information flows between the SAP Ariba solution and the third-party tax calculation system.

Sample request for initial tax calculation

Sample Code

<soap:Envelope xmlns:soap="http://schemas.xmlsoap.org/soap/envelope/" xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"> <soap:Header><Headers xmlns="urn:Ariba:Buyer:vrealm_2"><variant>vrealm_2</variant><partition>prealm_2</partition></Headers></soap:Header><soap:Body><TaxServiceExportRequest xmlns="urn:Ariba:Buyer:TaxAPI" variant="vrealm_2" partition="prealm_2"><ProcureLineItemCollection_TaxServiceAPIRequest_Item> <item> <CompanyCode><UniqueName>3000</UniqueName></CompanyCode> <DocumentDate>2018-11-14T08:44:50Z</DocumentDate> <DocumentSubType>standard</DocumentSubType> <LineItems> <item> <BillingAddress> <PostalAddress> <City>NEW YORK</City> <Country><UniqueName>US</UniqueName></Country> <Line1>000 Broadway</Line1><Line2/><Line3/> <PostalCode>10001</PostalCode> <State>NY</State> </PostalAddress> </BillingAddress> <Description><UnitOfMeasure><UniqueName>EA</UniqueName></UnitOfMeasure></Description> <IncoTermsDetail/> <LineType><Category>1</Category><UniqueName>_NonCatalogItem</UniqueName></LineType> <NetAmount><Amount>100.00000</Amount><Currency><UniqueName>USD</UniqueName></Currency></NetAmount> <NumberInCollection>1</NumberInCollection> <OriginalSupplierAmount> <Amount>100.00000</Amount><Currency><UniqueName>USD</UniqueName></Currency> </OriginalSupplierAmount> <ParentLineNumber>-1</ParentLineNumber> <Quantity>10.00000</Quantity> <ShipFromAddress> <PostalAddress> <City>Paris</City> <Country><UniqueName>US</UniqueName></Country> <Line1>An der Welle 00</Line1><Line2/><Line3/> <PostalCode>94089</PostalCode> <State>CA</State> </PostalAddress> </ShipFromAddress>



<ShipTo> <PostalAddress> <City>NEW YORK</City> <Country><UniqueName>US</UniqueName></Country> <Line1>000 Broadway</Line1><Line2/><Line3/> <PostalCode>10001</PostalCode> <State>NY</State> </PostalAddress> </ShipTo> <SupplierID>0000000100</SupplierID> <SupplierLocation> <PostalAddress> <City>Berlin</City> <Country><UniqueName>US</UniqueName></Country> <Line1>Kolping Str. 00</Line1><Line2/><Line3/> <PostalCode>94536</PostalCode> <State>CA</State> </PostalAddress> </SupplierLocation> <TaxExclusion>false</TaxExclusion> </item> <item> <BillingAddress> <PostalAddress> <City>NEW YORK</City> <Country><UniqueName>US</UniqueName></Country> <Line1>000 Broadway</Line1><Line2/><Line3/> <PostalCode>10001</PostalCode> <State>NY</State> </PostalAddress> </BillingAddress> <IncoTermsDetail/> <LineType><Category>2</Category><UniqueName>StateSalesTax</UniqueName></LineType> <NetAmount><Amount>10.00000</Amount><Currency><UniqueName>USD</UniqueName></Currency></NetAmount> <NumberInCollection>2</NumberInCollection> <OriginalSupplierAmount> <Amount>10.00000</Amount><Currency><UniqueName>USD</UniqueName></Currency> </OriginalSupplierAmount> <Parent><NumberInCollection>1</NumberInCollection></Parent> <ParentLineNumber>0</ParentLineNumber> <Quantity>1.00000</Quantity> <ShipFromAddress> <PostalAddress> <City>Paris</City> <Country><UniqueName>US</UniqueName></Country> <Line1>An der Welle 00</Line1><Line2/><Line3/> <PostalCode>94089</PostalCode> <State>CA</State> </PostalAddress> </ShipFromAddress> <ShipTo> <PostalAddress> <City>NEW YORK</City> <Country><UniqueName>US</UniqueName></Country> <Line1>000 Broadway</Line1><Line2/><Line3/> <PostalCode>10001</PostalCode> <State>NY</State> </PostalAddress> </ShipTo> <SupplierID>0000000100</SupplierID> <SupplierLocation> <PostalAddress> <City>Berlin</City> <Country><UniqueName>US</UniqueName></Country> <Line1>Kolping Str. 00</Line1><Line2/><Line3/>

Tax and charge configurationSample requests and responses in third-party tax calculation PUBLIC 115

<PostalCode>94536</PostalCode> <State>CA</State> </PostalAddress> </SupplierLocation> <TaxExclusion>true</TaxExclusion> </item> <item> <BillingAddress> <PostalAddress> <City>NEW YORK</City> <Country><UniqueName>US</UniqueName></Country> <Line1>000 Broadway</Line1><Line2/><Line3/> <PostalCode>10001</PostalCode> <State>NY</State> </PostalAddress> </BillingAddress> <IncoTermsDetail/> <LineType><Category>2</Category><UniqueName>CountySalesTax</UniqueName></LineType> <NetAmount><Amount>10.00000</Amount><Currency><UniqueName>USD</UniqueName></Currency></NetAmount> <NumberInCollection>3</NumberInCollection> <OriginalSupplierAmount> <Amount>10.00000</Amount><Currency><UniqueName>USD</UniqueName></Currency> </OriginalSupplierAmount> <Parent><NumberInCollection>1</NumberInCollection></Parent> <ParentLineNumber>0</ParentLineNumber> <Quantity>1.00000</Quantity> <ShipFromAddress> <PostalAddress> <City>Paris</City> <Country><UniqueName>US</UniqueName></Country> <Line1>An der Welle 00</Line1><Line2/><Line3/> <PostalCode>94089</PostalCode> <State>CA</State> </PostalAddress> </ShipFromAddress> <ShipTo> <PostalAddress> <City>NEW YORK</City> <Country><UniqueName>US</UniqueName></Country> <Line1>000 Broadway</Line1><Line2/><Line3/> <PostalCode>10001</PostalCode> <State>NY</State> </PostalAddress> </ShipTo> <SupplierID>0000000100</SupplierID> <SupplierLocation> <PostalAddress> <City>Berlin</City> <Country><UniqueName>US</UniqueName></Country> <Line1>Kolping Str. 00</Line1><Line2/><Line3/> <PostalCode>94536</PostalCode> <State>CA</State> </PostalAddress> </SupplierLocation> <TaxExclusion>true</TaxExclusion> </item> </LineItems> <OrganizationName>3000</OrganizationName> <OrganizationUnit>CompanyCode</OrganizationUnit> <RequestType>TaxCalculation</RequestType> <Type>ariba.invoicing.core.InvoiceReconciliation</Type> <UniqueName>IR141120181414_LL_Granular_UnderTaxDispu-64</UniqueName> </item></ProcureLineItemCollection_TaxServiceAPIRequest_Item>



</TaxServiceExportRequest></soap:Body></soap:Envelope>

Sample responses with initial tax calculation

Example without the optional TaxComponents element:

Sample Code

<soapenv:Envelope xmlns:soapenv="http://schemas.xmlsoap.org/soap/envelope/" xmlns:urn="urn:Ariba:Buyer:TaxAPI"> <soapenv:Body><urn:TaxServiceExportReply partition="prealm_2" variant="vrealm_2"><urn:ProcureLineItemCollection_TaxServiceAPIResponse_Item> <urn:item> <urn:ExternalTaxResponseStatus> <urn:Success>True</urn:Success> </urn:ExternalTaxResponseStatus> <urn:LineItems> <urn:item> <urn:ExternalTaxItem> <urn:item> <urn:IsBuyerPayableTax>false</urn:IsBuyerPayableTax> <urn:AbatementPercent>100</urn:AbatementPercent> <urn:Category>POInv</urn:Category> <urn:Description>StateSalesTax</urn:Description> <urn:ExternalTaxType><urn:UniqueName>StateSalesTax</urn:UniqueName></urn:ExternalTaxType> <urn:FormulaString>NetAmount</urn:FormulaString> <urn:IsDeductible>0</urn:IsDeductible> <urn:InvoiceCitation>StateSalesTax</urn:InvoiceCitation> <urn:PerUnit>0</urn:PerUnit> <urn:Percent>4</urn:Percent> <urn:TaxAmount> <urn:Amount>15</urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency> </urn:TaxAmount> <urn:TaxableAmount> <urn:Amount>100</urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency> </urn:TaxableAmount> </urn:item> <urn:item> <urn:IsBuyerPayableTax>false</urn:IsBuyerPayableTax> <urn:AbatementPercent>100</urn:AbatementPercent> <urn:Category>POInv</urn:Category> <urn:Description>CountySalesTax</urn:Description> <urn:ExternalTaxType><urn:UniqueName>CountySalesTax</urn:UniqueName></urn:ExternalTaxType> <urn:FormulaString>NetAmount</urn:FormulaString> <urn:IsDeductible>0</urn:IsDeductible> <urn:InvoiceCitation>CountySalesTax</urn:InvoiceCitation> <urn:PerUnit>0</urn:PerUnit> <urn:Percent>4</urn:Percent> <urn:TaxAmount> <urn:Amount>10</urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency> </urn:TaxAmount> <urn:TaxableAmount> <urn:Amount>100</urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency> </urn:TaxableAmount>


</urn:item> </urn:ExternalTaxItem> <urn:NumberInCollection>1</urn:NumberInCollection> <urn:TaxCode> <urn:Country><urn:UniqueName>US</urn:UniqueName></urn:Country><urn:UniqueName>I0</urn:UniqueName> </urn:TaxCode> </urn:item> <urn:item> <urn:ExternalTaxItem></urn:ExternalTaxItem> <urn:NumberInCollection>2</urn:NumberInCollection> </urn:item> <urn:item> <urn:ExternalTaxItem></urn:ExternalTaxItem> <urn:NumberInCollection>3</urn:NumberInCollection> </urn:item> </urn:LineItems> <urn:UniqueName>IR141120181414_LL_Granular_UnderTaxDispu-64</urn:UniqueName> </urn:item></urn:ProcureLineItemCollection_TaxServiceAPIResponse_Item></urn:TaxServiceExportReply></soapenv:Body> </soapenv:Envelope>

Excerpt showing a summary tax amount along with a TaxComponents element for the detailed tax breakdown:

Sample Code

<urn:ExternalTaxItem> <urn:item> <urn:IsBuyerPayableTax>false</urn:IsBuyerPayableTax> <urn:AbatementPercent>100</urn:AbatementPercent> <urn:Category>POInv</urn:Category> <urn:Description>SalesTax</urn:Description> <urn:ExternalTaxType> <urn:UniqueName>SalesTax</urn:UniqueName> </urn:ExternalTaxType> <urn:FormulaString>NetAmount</urn:FormulaString> <urn:IsDeductible>0</urn:IsDeductible> <urn:InvoiceCitation>SalesTax</urn:InvoiceCitation> <urn:PerUnit>0</urn:PerUnit> <urn:Percent>4</urn:Percent> <urn:TaxAmount> <urn:Amount>25</urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency> </urn:TaxAmount> <urn:TaxableAmount> <urn:Amount>100</urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency> </urn:TaxableAmount> <urn:TaxComponents> <urn:item> <urn:Description>State tax</urn:Description> <urn:ExternalTaxType> <urn:UniqueName>StateSalesTax</urn:UniqueName> </urn:ExternalTaxType> <urn:FormulaString>NetAmount</urn:FormulaString> <urn:Percent>15</urn:Percent> <urn:TaxAmount> <urn:Amount>15</urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency> </urn:TaxAmount> <urn:TaxableAmount> <urn:Amount>100</urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency>



</urn:TaxableAmount> </urn:item> <urn:item> <urn:Description>County tax</urn:Description> <urn:ExternalTaxType> <urn:UniqueName>CountySalesTax</urn:UniqueName> </urn:ExternalTaxType> <urn:FormulaString>NetAmount</urn:FormulaString> <urn:Percent>10</urn:Percent> <urn:TaxAmount> <urn:Amount>10</urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency> </urn:TaxAmount> <urn:TaxableAmount> <urn:Amount>100</urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency> </urn:TaxableAmount> </urn:item> </urn:TaxComponents> </urn:item> </urn:ExternalTaxItem>

Excerpt of sample request for tax calculation of line-item credit memo

Sample Code

<TaxServiceExportRequest xmlns="urn:Ariba:Buyer:TaxAPI" variant="vrealm_2" partition="prealm_2"> <ProcureLineItemCollection_TaxServiceAPIRequest_Item> <item> <CompanyCode> <UniqueName>3000</UniqueName> </CompanyCode> <DocumentDate>2020-04-16T20:11:00Z</DocumentDate> <DocumentSubType>lineLevelCreditMemo</DocumentSubType> <LineItems> <item>...</item> </LineItems> <OrganizationName>3000</OrganizationName> <OrganizationUnit>CompanyCode</OrganizationUnit> <RelatedDocument>IRSINV10555-NonPO-04-33</RelatedDocument> <RequestType>TaxCalculation</RequestType> <Type>ariba.invoicing.core.InvoiceReconciliation</Type> <UniqueName>IRCM10555-NonPO-04-34</UniqueName> <RelatedDocumentDate>2020-04-14T20:09:00Z</RelatedDocumentDate> </item> </ProcureLineItemCollection_TaxServiceAPIRequest_Item></TaxServiceExportRequest>

Sample request for final payment posting instructions

<soap:Envelope xmlns:soap="http://schemas.xmlsoap.org/soap/envelope/" xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance">


<soap:Header><Headers xmlns="urn:Ariba:Buyer:vrealm_2"><variant>vrealm_2</variant><partition>prealm_2</partition></Headers></soap:Header><soap:Body><TaxServiceExportRequest xmlns="urn:Ariba:Buyer:TaxAPI" variant="vrealm_2" partition="prealm_2"><ProcureLineItemCollection_TaxServiceAPIRequest_Item> <item> <CompanyCode><UniqueName>3000</UniqueName></CompanyCode> <DocumentDate>2018-11-14T08:44:50Z</DocumentDate> <DocumentSubType>standard</DocumentSubType> <LineItems> <item> <BillingAddress> <PostalAddress> <City>NEW YORK</City> <Country><UniqueName>US</UniqueName></Country> <Line1>000 Broadway</Line1><Line2/><Line3/> <PostalCode>10001</PostalCode> <State>NY</State> </PostalAddress> </BillingAddress> <Description><UnitOfMeasure><UniqueName>EA</UniqueName></UnitOfMeasure></Description> <IncoTermsDetail/> <LineType><Category>1</Category><UniqueName>_NonCatalogItem</UniqueName></LineType> <NetAmount><Amount>100.00000</Amount><Currency><UniqueName>USD</UniqueName></Currency></NetAmount> <NumberInCollection>1</NumberInCollection> <OriginalSupplierAmount> <Amount>100.00000</Amount><Currency><UniqueName>USD</UniqueName></Currency> </OriginalSupplierAmount> <ParentLineNumber>-1</ParentLineNumber> <Quantity>10.00000</Quantity> <ShipFromAddress> <PostalAddress> <City>Paris</City> <Country><UniqueName>US</UniqueName></Country> <Line1>An der Welle 00</Line1><Line2/><Line3/> <PostalCode>94089</PostalCode> <State>CA</State> </PostalAddress> </ShipFromAddress> <ShipTo> <PostalAddress> <City>NEW YORK</City> <Country><UniqueName>US</UniqueName></Country> <Line1>000 Broadway</Line1><Line2/><Line3/> <PostalCode>10001</PostalCode> <State>NY</State> </PostalAddress> </ShipTo> <SupplierID>0000000100</SupplierID> <SupplierLocation> <PostalAddress> <City>Berlin</City> <Country><UniqueName>US</UniqueName></Country> <Line1>Kolping Str. 00</Line1><Line2/><Line3/> <PostalCode>94536</PostalCode> <State>CA</State> </PostalAddress> </SupplierLocation> <TaxExclusion>false</TaxExclusion> <Taxes> <item> <FinalAmount>



<Amount>15.00000</Amount><Currency><UniqueName>USD</UniqueName></Currency> </FinalAmount> <OriginalSupplierAmount> <Amount>10.00000</Amount><Currency><UniqueName>USD</UniqueName></Currency> </OriginalSupplierAmount> <TaxType> <UniqueName>StateSalesTax</UniqueName> </TaxType> </item> <item> <FinalAmount> <Amount>10.00000</Amount><Currency><UniqueName>USD</UniqueName></Currency> </FinalAmount> <OriginalSupplierAmount> <Amount>10.00000</Amount><Currency><UniqueName>USD</UniqueName></Currency> </OriginalSupplierAmount> <TaxType> <UniqueName>CountySalesTax</UniqueName> </TaxType> </item> </Taxes> </item> <item> <BillingAddress> <PostalAddress> <City>NEW YORK</City> <Country><UniqueName>US</UniqueName></Country> <Line1>000 Broadway</Line1><Line2/><Line3/> <PostalCode>10001</PostalCode> <State>NY</State> </PostalAddress> </BillingAddress> <BuyerTaxRegistrationNumber/> <IncoTermsDetail/> <LineType><Category>2</Category><UniqueName>StateSalesTax</UniqueName></LineType> <NetAmount><Amount>15.00000</Amount><Currency><UniqueName>USD</UniqueName></Currency></NetAmount> <NumberInCollection>2</NumberInCollection> <OriginalSupplierAmount> <Amount>10.00000</Amount><Currency><UniqueName>USD</UniqueName></Currency> </OriginalSupplierAmount> <Parent><NumberInCollection>1</NumberInCollection></Parent> <ParentLineNumber>0</ParentLineNumber> <Quantity>1.00000</Quantity> <SellerTaxRegistrationNumber/> <ShipFromAddress> <PostalAddress> <City>Paris</City> <Country><UniqueName>US</UniqueName></Country> <Line1>An der Welle 00</Line1><Line2/><Line3/> <PostalCode>94089</PostalCode> <State>CA</State> </PostalAddress> </ShipFromAddress> <ShipTo> <PostalAddress> <City>NEW YORK</City> <Country><UniqueName>US</UniqueName></Country> <Line1>000 Broadway</Line1><Line2/><Line3/> <PostalCode>10001</PostalCode> <State>NY</State> </PostalAddress>


</ShipTo> <SupplierID>0000000100</SupplierID> <SupplierLocation> <PostalAddress> <City>Berlin</City> <Country><UniqueName>US</UniqueName></Country> <Line1>Kolping Str. 00</Line1><Line2/><Line3/> <PostalCode>94536</PostalCode> <State>CA</State> </PostalAddress> </SupplierLocation> <TaxExclusion>true</TaxExclusion> </item> <item> <BillingAddress> <PostalAddress> <City>NEW YORK</City> <Country><UniqueName>US</UniqueName></Country> <Line1>000 Broadway</Line1><Line2/><Line3/> <PostalCode>10001</PostalCode> <State>NY</State> </PostalAddress> </BillingAddress> <BuyerTaxRegistrationNumber/> <IncoTermsDetail/> <LineType><Category>2</Category><UniqueName>CountySalesTax</UniqueName></LineType> <NetAmount><Amount>10.00000</Amount><Currency><UniqueName>USD</UniqueName></Currency></NetAmount> <NumberInCollection>3</NumberInCollection> <OriginalSupplierAmount> <Amount>10.00000</Amount><Currency><UniqueName>USD</UniqueName></Currency> </OriginalSupplierAmount> <Parent><NumberInCollection>1</NumberInCollection></Parent> <ParentLineNumber>0</ParentLineNumber> <Quantity>1.00000</Quantity> <SellerTaxRegistrationNumber/> <ShipFromAddress> <PostalAddress> <City>Paris</City> <Country><UniqueName>US</UniqueName></Country> <Line1>An der Welle 00</Line1><Line2/><Line3/> <PostalCode>94089</PostalCode> <State>CA</State> </PostalAddress> </ShipFromAddress> <ShipTo> <PostalAddress> <City>NEW YORK</City> <Country><UniqueName>US</UniqueName></Country> <Line1>000 Broadway</Line1><Line2/><Line3/> <PostalCode>10001</PostalCode> <State>NY</State> </PostalAddress> </ShipTo> <SupplierID>0000000100</SupplierID> <SupplierLocation> <PostalAddress> <City>Berlin</City> <Country><UniqueName>US</UniqueName></Country> <Line1>Kolping Str. 00</Line1><Line2/><Line3/> <PostalCode>94536</PostalCode> <State>CA</State> </PostalAddress> </SupplierLocation> <TaxExclusion>true</TaxExclusion> </item>



</LineItems> <OrganizationName>3000</OrganizationName> <OrganizationUnit>CompanyCode</OrganizationUnit> <RequestType>ERPPosting</RequestType> <Type>ariba.invoicing.core.InvoiceReconciliation</Type> <UniqueName>IR141120181414_LL_Granular_UnderTaxDispu-64</UniqueName> </item></ProcureLineItemCollection_TaxServiceAPIRequest_Item></TaxServiceExportRequest></soap:Body> </soap:Envelope>

Sample response with final payment posting instructions

<soapenv:Envelope xmlns:soapenv="http://schemas.xmlsoap.org/soap/envelope/" xmlns:urn="urn:Ariba:Buyer:TaxAPI"> <soapenv:Body><urn:TaxServiceExportReply partition="prealm_2" variant="vrealm_2"><urn:ProcureLineItemCollection_TaxServiceAPIResponse_Item> <urn:item> <urn:ExternalTaxResponseStatus> <urn:Success>True</urn:Success> </urn:ExternalTaxResponseStatus> <urn:LineItems> <urn:item> <urn:ExternalTaxItem> <urn:item> <urn:IsBuyerPayableTax>false</urn:IsBuyerPayableTax> <urn:AbatementPercent>100</urn:AbatementPercent> <urn:Category>POInv</urn:Category> <urn:Description>StateSalesTax</urn:Description> <urn:ExternalTaxType> <urn:UniqueName>StateSalesTax</urn:UniqueName> </urn:ExternalTaxType> <urn:FormulaString>NetAmount</urn:FormulaString> <urn:IsDeductible>0</urn:IsDeductible> <urn:InvoiceCitation>StateSalesTax</urn:InvoiceCitation> <urn:PerUnit>0</urn:PerUnit> <urn:Percent>4</urn:Percent> <urn:TaxAmount> <urn:Amount>15</urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency> </urn:TaxAmount> <urn:TaxableAmount> <urn:Amount>100</urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency> </urn:TaxableAmount> <urn:PostingComponents> <urn:item> <urn:Description>State Sales tax</urn:Description> <urn:ExternalTaxType><urn:UniqueName>StateSalesTax</urn:UniqueName></urn:ExternalTaxType> <urn:FormulaString>NetAmount</urn:FormulaString> <urn:Percent>15</urn:Percent> <urn:InvoiceCitation>InvoiceCitation1</urn:InvoiceCitation> <urn:IsDeductible>false</urn:IsDeductible> <urn:TaxAmount><urn:Amount>10</urn:Amount> <urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency></urn:TaxAmount> <urn:TaxableAmount> <urn:Amount>100</urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency>


</urn:TaxableAmount> <urn:PostingInstructions> <urn:item> <urn:Name>TaxAuthority</urn:Name> <urn:Value>State Department of Revenue</urn:Value> </urn:item> <urn:item> <urn:Name>AccountInstruction</urn:Name> <urn:Value>NVV</urn:Value> </urn:item> </urn:PostingInstructions> </urn:item> <urn:item> <urn:Description>State Sales tax</urn:Description> <urn:ExternalTaxType><urn:UniqueName>StateSalesTax</urn:UniqueName></urn:ExternalTaxType> <urn:FormulaString>NetAmount</urn:FormulaString> <urn:Percent>15</urn:Percent> <urn:InvoiceCitation>InvoiceCitation1</urn:InvoiceCitation> <urn:IsDeductible>false</urn:IsDeductible> <urn:TaxAmount> <urn:Amount>5</urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency> </urn:TaxAmount> <urn:TaxableAmount> <urn:Amount>100</urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency> </urn:TaxableAmount> <urn:PostingInstructions> <urn:item> <urn:Name>TaxAuthority</urn:Name> <urn:Value>State Department of Revenue</urn:Value> </urn:item> <urn:item> <urn:Name>AccountInstruction</urn:Name> <urn:Value>ESE</urn:Value> </urn:item> </urn:PostingInstructions> </urn:item> </urn:PostingComponents> </urn:item> <urn:item> <urn:IsBuyerPayableTax>false</urn:IsBuyerPayableTax> <urn:AbatementPercent>100</urn:AbatementPercent> <urn:Category>POInv</urn:Category> <urn:Description>CountySalesTax</urn:Description> <urn:ExternalTaxType> <urn:UniqueName>CountySalesTax</urn:UniqueName> </urn:ExternalTaxType> <urn:FormulaString>NetAmount</urn:FormulaString> <urn:IsDeductible>0</urn:IsDeductible> <urn:InvoiceCitation>CountySalesTax</urn:InvoiceCitation> <urn:PerUnit>0</urn:PerUnit> <urn:Percent>4</urn:Percent> <urn:TaxAmount> <urn:Amount>10</urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency> </urn:TaxAmount> <urn:TaxableAmount> <urn:Amount>100</urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency> </urn:TaxableAmount> <urn:PostingComponents> <urn:item> <urn:Description>County Sales tax</urn:Description>



<urn:ExternalTaxType> <urn:UniqueName>CountySalesTax</urn:UniqueName> </urn:ExternalTaxType> <urn:FormulaString>NetAmount</urn:FormulaString> <urn:Percent>10</urn:Percent> <urn:InvoiceCitation>InvoiceCitation1</urn:InvoiceCitation> <urn:IsDeductible>false</urn:IsDeductible> <urn:TaxAmount> <urn:Amount>10</urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency> </urn:TaxAmount> <urn:TaxableAmount> <urn:Amount>100</urn:Amount><urn:Currency><urn:UniqueName>USD</urn:UniqueName></urn:Currency> </urn:TaxableAmount> <urn:PostingInstructions> <urn:item> <urn:Name>TaxAuthority</urn:Name> <urn:Value>County Department of Revenue</urn:Value> </urn:item> <urn:item> <urn:Name>AccountInstruction</urn:Name> <urn:Value>NVV</urn:Value> </urn:item> </urn:PostingInstructions> </urn:item> </urn:PostingComponents> </urn:item> </urn:ExternalTaxItem> <urn:NumberInCollection>1</urn:NumberInCollection> <urn:TaxCode> <urn:Country><urn:UniqueName>US</urn:UniqueName></urn:Country> <urn:UniqueName>I0</urn:UniqueName> </urn:TaxCode> </urn:item> <urn:item> <urn:ExternalTaxItem></urn:ExternalTaxItem> <urn:NumberInCollection>2</urn:NumberInCollection> </urn:item> <urn:item> <urn:ExternalTaxItem></urn:ExternalTaxItem> <urn:NumberInCollection>3</urn:NumberInCollection> </urn:item> </urn:LineItems> <urn:UniqueName>IR141120181414_LL_Granular_UnderTaxDispu-64</urn:UniqueName> </urn:item></urn:ProcureLineItemCollection_TaxServiceAPIResponse_Item></urn:TaxServiceExportReply></soapenv:Body> </soapenv:Envelope>

Invoice with no tax, response with tax

Sample CodeInvoice with no tax

<?xml version="1.0" encoding="UTF-8"?>


<soap:Envelope xmlns:soap="http://schemas.xmlsoap.org/soap/envelope/" xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"> <soap:Header> <Headers xmlns="urn:Ariba:Buyer:vrealm_2205"> <variant>vrealm_2205</variant> <partition>prealm_2205</partition> </Headers> </soap:Header> <soap:Body> <TaxServiceExportRequest xmlns="urn:Ariba:Buyer:TaxAPI" partition="prealm_2205" variant="vrealm_2205"> <ProcureLineItemCollection_TaxServiceAPIRequest_Item> <item> <CompanyCode> <UniqueName>3000</UniqueName> </CompanyCode> <DocumentDate>2020-03-24T06:19:10Z</DocumentDate> <LineItems> <item> <BillingAddress> <PostalAddress> <City>Austin</City> <Country> <UniqueName>US</UniqueName> </Country> <PostalCode>78704</PostalCode> <State>TX</State> <Line1/> <Line2/> <Line3/> </PostalAddress> </BillingAddress> <CommodityCode> <UniqueName>006</UniqueName> </CommodityCode> <Description> <CommonCommodityCode> <Domain>unspsc</Domain> <UniqueName>14111514</UniqueName> </CommonCommodityCode> <UnitOfMeasure> <UniqueName>EA</UniqueName> </UnitOfMeasure> </Description> <LineType> <UniqueName>_CatalogItem</UniqueName> <Category>1</Category> </LineType> <NetAmount> <Amount>1000.00000</Amount> <Currency> <UniqueName>USD</UniqueName> </Currency> </NetAmount> <NumberInCollection>1</NumberInCollection> <ParentLineNumber>0</ParentLineNumber> <Quantity>1.00000</Quantity> <ShipTo> <PostalAddress> <City>SEATTLE</City> <Country> <UniqueName>US</UniqueName> </Country> <PostalCode>98131</PostalCode> <State>WA</State> <Line1>Broadway 3101</Line1> <Line2/>



<Line3/> </PostalAddress> </ShipTo> <SupplierLocation> <PostalAddress> <City>Melrose Park</City> <Country> <UniqueName>US</UniqueName> </Country> <PostalCode>60164</PostalCode> <State>IL</State> <Line1/> <Line2/> <Line3/> </PostalAddress> </SupplierLocation> <TaxExclusion>false</TaxExclusion> <ShipFromAddress> <PostalAddress> <Country> <UniqueName>DE</UniqueName> </Country> <State>16</State> <PostalCode/> <City>Thuringia</City> <Line1>12354 NE Peterkort</Line1> <Line2/> <Line3/> </PostalAddress> </ShipFromAddress> <OriginalSupplierAmount> <Currency> <UniqueName>USD</UniqueName> </Currency> <Amount>1000.00000</Amount> </OriginalSupplierAmount> <SupplierID>0000003001</SupplierID> </item> </LineItems> <OrganizationName>3000</OrganizationName> <OrganizationUnit>CompanyCode</OrganizationUnit> <Type>ariba.invoicing.core.InvoiceReconciliation</Type> <UniqueName>IRInvoiceWithoutTax-1791</UniqueName> <DocumentSubType>standard</DocumentSubType> <RequestType>TaxCalculation</RequestType> </item> </ProcureLineItemCollection_TaxServiceAPIRequest_Item> </TaxServiceExportRequest> </soap:Body> </soap:Envelope>

Sample CodeResponse with tax

<?xml version="1.0" encoding="UTF-8"?> <SOAP-ENV:Envelope xmlns:SOAP-ENV="http://schemas.xmlsoap.org/soap/envelope/"> <SOAP-ENV:Header/> <SOAP-ENV:Body> <ns2:TaxServiceExportReply xmlns:ns2="urn:Ariba:Buyer:TaxAPI"> <ns2:ProcureLineItemCollection_TaxServiceAPIResponse_Item> <ns2:item> <ns2:ExternalTaxResponseStatus> <ns2:Description xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:nil="true"/>


<ns2:ErrorCode xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:nil="true"/> <ns2:ErrorLocationPath xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:nil="true"/> <ns2:Success>true</ns2:Success> </ns2:ExternalTaxResponseStatus> <ns2:LineItems> <ns2:item> <ns2:ExternalTaxItem> <ns2:item> <ns2:AbatementPercent>100.00</ns2:AbatementPercent> <ns2:AccountInstruction>WA2</ns2:AccountInstruction> <ns2:Category>CU</ns2:Category> <ns2:Description>State Sales/Use</ns2:Description> <ns2:ExternalTaxType> <ns2:UniqueName>State Sales/Use</ns2:UniqueName> </ns2:ExternalTaxType> <ns2:FormulaString>USBG2: Buyer-assessed consumers use tax applies.|9970|P</ns2:FormulaString> <ns2:InvoiceCitation>Consumer's Use Tax</ns2:InvoiceCitation> <ns2:IsDeductible>false</ns2:IsDeductible> <ns2:Percent>6.500</ns2:Percent> <ns2:TaxAmount> <ns2:Amount>65.00</ns2:Amount> <ns2:Currency> <ns2:UniqueName>USD</ns2:UniqueName> </ns2:Currency> </ns2:TaxAmount> <ns2:TaxAuthority>WA - STATE SALES/USE TAX</ns2:TaxAuthority> <ns2:TaxableAmount> <ns2:Amount>1000.00</ns2:Amount> <ns2:Currency> <ns2:UniqueName>USD</ns2:UniqueName> </ns2:Currency> </ns2:TaxableAmount> <ns2:IsBuyerPayableTax>false</ns2:IsBuyerPayableTax> </ns2:item> <ns2:item> <ns2:AbatementPercent>100.00</ns2:AbatementPercent> <ns2:AccountInstruction>WA2</ns2:AccountInstruction> <ns2:Category>CU</ns2:Category> <ns2:Description>City Sales/Use</ns2:Description> <ns2:ExternalTaxType> <ns2:UniqueName>City Sales/Use</ns2:UniqueName> </ns2:ExternalTaxType> <ns2:FormulaString>USBG2: Buyer-assessed consumers use tax applies.|9971|P</ns2:FormulaString> <ns2:InvoiceCitation>Consumer's Use Tax</ns2:InvoiceCitation> <ns2:IsDeductible>false</ns2:IsDeductible> <ns2:Percent>3.500</ns2:Percent> <ns2:TaxAmount> <ns2:Amount>35.00</ns2:Amount> <ns2:Currency> <ns2:UniqueName>USD</ns2:UniqueName> </ns2:Currency> </ns2:TaxAmount>



<ns2:TaxAuthority>WA - SEATAC, CITY SALES/USE TAX</ns2:TaxAuthority> <ns2:TaxableAmount> <ns2:Amount>1000.00</ns2:Amount> <ns2:Currency> <ns2:UniqueName>USD</ns2:UniqueName> </ns2:Currency> </ns2:TaxableAmount> <ns2:IsBuyerPayableTax>false</ns2:IsBuyerPayableTax> </ns2:item> </ns2:ExternalTaxItem> <ns2:NumberInCollection>1</ns2:NumberInCollection> <ns2:TaxCode> <ns2:Country> <ns2:UniqueName>US</ns2:UniqueName> </ns2:Country> <ns2:UniqueName>C1</ns2:UniqueName> </ns2:TaxCode> </ns2:item> </ns2:LineItems> <ns2:UniqueName>IRInvoiceWithoutTax-1791</ns2:UniqueName> </ns2:item> </ns2:ProcureLineItemCollection_TaxServiceAPIResponse_Item> </ns2:TaxServiceExportReply> </SOAP-ENV:Body> </SOAP-ENV:Envelope>


Important Disclaimers and Legal Information

HyperlinksSome links are classified by an icon and/or a mouseover text. These links provide additional information.About the icons:

● Links with the icon : You are entering a Web site that is not hosted by SAP. By using such links, you agree (unless expressly stated otherwise in your agreements with SAP) to this:

● The content of the linked-to site is not SAP documentation. You may not infer any product claims against SAP based on this information.● SAP does not agree or disagree with the content on the linked-to site, nor does SAP warrant the availability and correctness. SAP shall not be liable for any

damages caused by the use of such content unless damages have been caused by SAP's gross negligence or willful misconduct.

● Links with the icon : You are leaving the documentation for that particular SAP product or service and are entering a SAP-hosted Web site. By using such links, you agree that (unless expressly stated otherwise in your agreements with SAP) you may not infer any product claims against SAP based on this information.

Videos Hosted on External PlatformsSome videos may point to third-party video hosting platforms. SAP cannot guarantee the future availability of videos stored on these platforms. Furthermore, any advertisements or other content hosted on these platforms (for example, suggested videos or by navigating to other videos hosted on the same site), are not within the control or responsibility of SAP.

Beta and Other Experimental FeaturesExperimental features are not part of the officially delivered scope that SAP guarantees for future releases. This means that experimental features may be changed by SAP at any time for any reason without notice. Experimental features are not for productive use. You may not demonstrate, test, examine, evaluate or otherwise use the experimental features in a live operating environment or with data that has not been sufficiently backed up.The purpose of experimental features is to get feedback early on, allowing customers and partners to influence the future product accordingly. By providing your feedback (e.g. in the SAP Community), you accept that intellectual property rights of the contributions or derivative works shall remain the exclusive property of SAP.

Example CodeAny software coding and/or code snippets are examples. They are not for productive use. The example code is only intended to better explain and visualize the syntax and phrasing rules. SAP does not warrant the correctness and completeness of the example code. SAP shall not be liable for errors or damages caused by the use of example code unless damages have been caused by SAP's gross negligence or willful misconduct.

Bias-Free LanguageSAP supports a culture of diversity and inclusion. Whenever possible, we use unbiased language in our documentation to refer to people of all cultures, ethnicities, genders, and abilities.


Important Disclaimers and Legal Information

Tax and charge configurationImportant Disclaimers and Legal Information PUBLIC 131

www.ariba.com

© 2022 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. The information contained herein may be changed without prior notice.

Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies.

Please see https://www.sap.com/about/legal/trademark.html for additional trademark information and notices.

THE BEST RUN

http://www.ariba.com

https://www.sap.com/about/legal/trademark.html

Documents

Tax and charge configuration - help.sap.com