Tax configuration for the SAP Integration with

Concur Solutions
Use case description
TABLE OF CONTENTS
Referenced SAP Transaction Codes ............................................................................................................. 3
General SAP tax handling .............................................................................................................................. 4
General Concur tax handling ......................................................................................................................... 5
Tax use cases without configuration in Concur........................................................................................... 7
No tax handling................................................................................................................................................ 7
Tax use cases with configuration in Concur ................................................................................................ 8
Simple tax use case ........................................................................................................................................ 8
Non-domestic tax handling ............................................................................................................................ 9
No tax calculation .............................................................................................................................................. 9
Non-domestic tax calculation (e.g. EUVAT) ...................................................................................................... 9
Non-deductible taxes .................................................................................................................................... 10
No tax processing ............................................................................................................................................ 10
Tax reporting only ............................................................................................................................................ 12
Tax posting as separate expenses .................................................................................................................. 13
Partially deductible taxes ............................................................................................................................. 15
Non-deductible part is not shown in the posting and the tax reporting ............................................................ 16
Non-deductible part is shown in the tax reporting only .................................................................................... 17
Non-deductible part is posted separated and is shown in the tax reporting .................................................... 18
Multi-line taxes............................................................................................................................................... 20
Tax jurisdiction codes ...................................................................................................................................... 21
Regional handling within SAP ......................................................................................................................... 24
With external tax providers .............................................................................................................................. 26
Non-supported use cases ............................................................................................................................ 27
Concur Tax Calculation Method: Full Tax ................................................................................................... 27
Multiple non-deductible taxes with NAV handling ..................................................................................... 27
Swedish Tax Calculation for Entertainment documents ........................................................................... 27

2
Referenced SAP Transaction Codes
FS00 – G/L account master record maintenance
FTXP – Maintain Tax Code

3
General SAP tax handling

In an SAP ERP or S/4 system the tax handling is configured per country.
The tax settings per country are combined in a tax procedure. This tax procedure includes a set of different
tax types which are available with this country. Such a tax type defines the calculation mechanism of the tax,
e.g. is the tax calculated from net or from the gross amount. It doesn’t include for example tax percentages.
The tax percentages are defined in tax codes. These tax codes are configured in the transaction FTXP.

To maintain a tax code, you select the corresponding tax type and enter the relevant tax percentage. This
percentage may be the governmental statutory rate or depending on the configuration it is possible to have
different values, e.g. very often 100 is entered in case external tax calculation engines, like Vertex or Sabrix,
are used.
In addition, in the configuration of a tax code the G/L accounts to which the taxes should be posted are
maintained. Depending on the tax type it is possible that no tax account is needed, e.g. for non-deductible
taxes.

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General Concur tax handling
In a Concur system the tax handling is configured per Tax Authority. A Tax Authority is assigned to a country
respectively the combination of country and state/province. Each tax authority calculates one type of tax. For
some countries, several Tax Authorities need to be configured because different tax types must be
considered, like Canadian GST, Canadian provincial taxes …

The Tax Authority defines which tax rate types are available, like “Full Rate” or “Reduced Rate”, and it also
defines the calculation method for the rate type as well as the tax percentage.

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Which rate types are used when calculating an expense’s tax amount, is defined per Tax Authority and
expense type. Expense types are organized in “Tax & Reclaim Groups” to simplify the configuration.

For each group, you can define the conditions for applying a specific tax rate type. In addition, you can
define the conditions for reclaiming the tax amount.

6
Tax use cases without configuration in Concur

No tax handling

For some countries, there is by default no tax processing required or possible because of a too complex
process, e.g. USA.
In this case, there are no tax authorities maintained in Concur and on SAP side the G/L accounts must allow
postings without tax code.
The G/L settings can be changed in transaction FS00:

A combination of expense postings with and without tax codes within the same company code in SAP are
normally very uncommon.

7
Tax use cases with configuration in Concur

For all the following tax use cases, it is required to set up a tax authority and corresponding Tax & Reclaim
Groups in Concur.

In all domestic tax use cases the SAP tax code is entered in the Reclaim Tax Code field in the Tax &
Reclaim Group on step Reclaim Rates:

The tax code field on step Tax Rates should stay initial, except when mentioned in the following use cases

Simple tax use case

A simple tax use case is given in the following circumstances:

a) In Concur:
- Domestic receipt
- Completely reclaimable
- Only one tax authority and group is used for an expense entry
b) In SAP:
- Simple tax code configuration
- Including one tax type per tax code
- Taxes are posted to separate tax accounts
- No external tax engine in use

In such a case the Reclaim Tax Code needs to include the SAP tax code. Other additional adjustments on
Concur side are not required.

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Non-domestic tax handling

No tax calculation

In case of foreign receipt where no taxes should be posted in SAP but the SAP tax handling is activated a
tax code must be provided from Concur.
This tax code should be entered in the domestic Tax Authority configuration:

In this case this tax code should be configured with 0 % tax in SAP. This will not trigger an additional line in
the posting but this amount will then be listed in the tax reporting.

Non-domestic tax calculation (e.g. EUVAT)

In the case where taxes should be calculated and posted for foreign receipts this should be activated in
Concur in the Employee Related Configurations by unchecking ‘Only Calculate Domestic’.
In this case, even for an employee from country A with foreign receipts from country B the taxes are
calculated with the tax authorities belonging to country B. The reclaim tax codes which are normally
maintained in the Tax & Reclaim Groups for tax authority B are normally based on the SAP tax codes related
to the tax procedure for country B. This means it is very likely that it is required to maintained conditions for
the Tax & Reclaim Groups to be able to enter different SAP tax codes on Reclaim Rates page.
In addition, currently in SAP it is required to implement an implicit enhancement in method
‘is_non_domestic_tax’ of class ‘cl_cte_fin_post_tax_helper’. This is required because non-domestic receipts
would always be posted with the non-domestic tax code from the Tax Authority configuration. For that it is
necessary to let SAP think this is a domestic receipt J

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Non-deductible taxes

It is possible that taxes can’t be reclaimed from the tax authorities because of legal restrictions. This could be
e.g. that the document doesn’t include all legally required information (e.g. simplified invoice for Spain) or
that there are other legal rules which prevents reclaiming the VAT (e.g. gifts above a legal limit - §15 1a 1
UStG in Germany)
The first use case (missing information) is normally configured in Concur per Tax & Reclaim Group on the
Reclaim Rates page with the reclaim condition (Tax Receipt, Receipt, No Receipt). In case on non-
reclaimable tax the reclaim rate is set to 0%. For other use cases, additional conditions may be required.
In case of non-deductible taxes the tax amount is calculated in Concur based on the Rate Type and
transferred to SAP.
In the JSON the amountTax shows the total calculated tax amount but the amountReclaim shows 0.
"tax":[{
…
"amountTax": 19.00000000,
"amountReclaim": 0.00000000,
… }]}],

In SAP, there are 3 options how non-deductible taxes could be processed. For these options, no special
configuration is required in Concur. For all following options the corresponding tax codes must be configured
in Concur.

No tax processing

This means that the non-deductible VAT is not shown in the posting itself and not in the tax data. The tax is
completely ignored and is included in the expense posting. The SAP tax code normally includes one tax type
with 0%.

The posting in SAP look like this:

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11
Tax reporting only

The second option is that the non-deductible tax is not shown in the posting but the tax information shows
the non-deductible VAT. In the posting the tax amount is added to the expense account posting.
In this case a tax code with one tax type is created. The tax percentage for this tax type reflects the full tax
percentage on the document.

In this case, mostly the Acct Key is NVV.

The posting in SAP looks like this:

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Tax posting as separate expenses

In the third option the taxes are posted to a separate account in the posting and are shown in the tax tables.
The account which is used to post the non-deductible VAT is an expense account, which normally requires a
cost object assignment. This cost object is automatically copied for the expense account for the expense
entry.

In this case, mostly the Acct Key is NAV.

The posting in SAP looks like this:

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14
Partially deductible taxes

In general, there are the same options for partially deductible taxes as for non-deductible taxes. This means
the non-deductible part can be completely ignored during posting, can only be tax reporting relevant or
should be posted to a separate expense account.
But the deductible part is always posted to a tax account. This means in the tax code configuration both parts
(deductible and non-deductible) must be included. Only in case the non-deductible part should not be shown
in the posting and the tax reporting at all, then only one tax type needs to be configured.
To show the configuration and results for the 3 options the following example is used:

Like the examples above we have one expense entry in the report with a total amount of 119 EUR.
19% VAT is included, but only 13,3% VAT can be reclaimed from the tax authorities.

In this example the following information are included in the JSON document:
"journal":[{
"amountGross":119.00000000,
"journalAccountCode":"474210",
"journalPayee":"EMPL",
"journalPayer":"COMP",
"amountNetOfReclaim":105.70000000,
"amountNetOfTax":100.00000000,
"taxGuid":[
"8AC70B091B730541B59C631679B39BAC"]}],
"tax":[{
"taxCode":"MWVS",
"nonDomesticCode":"VR",
"locationCountryCode":"DE",
"taxSource":"SYST",
"taxReclaimCode":"VR",
"amountTax":19.00000000,
"taxAuthorityLabel":"DEVAT",
"amountReclaim":13.30000000,
"locationCountrySubCode":"DE-BW",
"taxGuid":"8AC70B091B730541B59C631679B39BAC"}]}],

The tax section shows the total tax amount and the reclaimable amount. The difference between these two
amounts in the non-deductible tax amount.
There are now two amounts (deductible VAT and non-deductible VAT) which should be mapped to tax types
in the SAP tax code configuration. For that reason, it is not enough to get the SAP tax code in the
taxReclaimCode field only. We need an additional information to link the two amounts to the correct tax
types. The only additional field which is available within Concur is the Tax Code. In case multiple tax
amounts (e.g. here the deductible and the non-deductible amounts) are transferred from Concur and should
be mapped, the Concur Tax Code fields should include the SAP condition type of the taxable amount.

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Non-deductible part is not shown in the posting and the tax reporting
In case the non-deductible part is not shown in the posting and the tax reporting then tax code configuration
only includes the configuration for the deductible part. For the non-deductible amount, no tax type is
configured.

The Concur tax code field must include the condition type of the tax type for the deductible amount.
The posting in this case will look like this:

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Non-deductible part is shown in the tax reporting only

In this case the tax code configuration includes two tax types for the deductible part and the non-deductible
part.
The non-deductible part is normally using an account key ‘NVV’ or another one with similar configuration.
This means there is no G/L account maintained to post the VAT.

The Concur Tax Code still must be mapped to the Condition Type of the deductible amount. The non-
deductible amount is then indirectly mapped.

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The non-deductible VAT amount is not posted to a separate account but in the tax reporting it is shown.

Non-deductible part is posted separated and is shown in the tax reporting

In this case the tax code configuration includes two tax types for the deductible part and the non-deductible
part.
The non-deductible part is normally using an account key ‘NAV’ or another one with similar configuration.
This means there is a G/L account maintained for the deductible and the non-deductible VAT maintained.

The Concur Tax Code still must be mapped to the Condition Type of the deductible amount. The non-
deductible amount is then indirectly mapped.

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In this case the non-deductible VAT is available in the posting and in the tax reporting. The non-deductible
VAT is posted to a separate expense account. This account requires normally an assignment to a cost
object. In the case of the native integration the cost object is automatically copied from the expense item.

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Multi-line taxes

In the case where multiple deductible or non-deductible taxes should be posted, then a special configuration
may be required. The best example for this is the tax handling in Canada. In Canada in addition to the
governmental taxes every region can have their own taxes. For example, in Quebec in addition to the GST
the regional QST will be added.
Within Concur this is realized with multiple Tax Authorities. In SAP this is realized with multiple tax types
within one tax code.

Important:
In case there are multiple tax types required in SAP it is necessary that the same amount of tax
sections is available in the JSON. This means if 3 tax types are required in SAP, then there must be 3
tax sections in the JSON. This means that normally 3 tax authorities are required in Concur.

Only 1 tax type for non-deductible VAT can be mapped indirectly. In case multiple tax authorities are
partially non-deductible, then the configuration must be adjusted to ensure that only one JSON tax
section includes a non-deductible amount.

For that reason, tax configuration in Concur using Extraction Factors should be handled with care!
Based on the Extraction Factors handling configured in the Employee Related Configurations the
extraction factors only influence the reclaim amount.

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If this option is taken, every tax line calculated by Concur will be treated as partially deductible. To
avoid that, the option ‘Tax and Reclaim Amount’ should be used for the native integration.

Tax jurisdiction codes

Tax jurisdiction codes are used to handle regional taxes. This means within a country different taxes or rates
are used per region.
Currently by default only tax jurisdiction codes for Canada are supported. The usage of TXJCDs for other
countries require the implementation of a BAdI.

Simple case

Tax jurisdiction codes can be used in countries where the tax rates can vary depending on the region or
location, for example USA or Canada. The usage of TXJCDs allows to create one tax code in SAP with
different rates or configuration.
Simple example:
In California, the full tax rate would be 9 % and in Washington 5 %.
Without TXJCDs it would be necessary to create 2 tax codes in SAP:
V1 – Full rate California 9 %
V2 – Full rate Washington 5 %

When using TXJCDs it is enough to create one US tax code for the full rate, e. g. V1 but in conjunction with
the TXJCS the different rates are customized.

Tax Code V1: Full Rate

V1/California = 9 %
V1/Washington = 5 %

If TXJCDs are used for a country in SAP or not depends on the tax procedure. The easiest way to identify if
TXJCDs are used is to open the transaction FTXP. In the case where the Tax Jurisdiction field is displayed
then it is activated.
With TXJCDs:

Without TXJCDs:

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Complex case

In other cases, where regional taxes are used, e.g. Canada, these regional parts are in additional to the
country specific parts.
Example:
In Canada in most regions GST will be charged by the Canadian tax authorities. In Quebec in addition to the
GST an additional tax, QST, will be charged.

In such a case the different tax types should be reported separately in SAP, but it is not possible to enter
multiple tax codes (e.g. 1 for QST and 1 for GST) in one expense line of a posting. For that reason, the
different tax types must be combined in tax codes. This is done like the partially deductible tax use case by
using multiple tax types in the configuration of a tax code.

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In Concur these different tax types are created by setting up multiple tax authorities. For both tax authorities,
the Reclaim Tax Code must point to the same tax code. But to map the tax amounts per tax authority to the
corresponding tax type in the SAP tax code, the Concur Tax Code should include the include the SAP
condition type.
In case the condition type is not shown in the tax code configuration as in the screenshot above you can
switch the view by clicking the Levels button

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The condition types will then be displayed:

Regional handling within SAP

In SAP, it is possible to handle regional taxes in multiple ways:

- Without tax jurisdiction codes
- With tax jurisdiction codes
- With external tax providers

Without Tax jurisdiction codes in SAP

In the case where no TXJCDs are used in SAP it is necessary that for every tax region a different tax code is
created in SAP. This means in Concur the tax configuration must be adjusted accordingly and a different
SAP tax code must be maintained in the field Reclaim Tax Code.
This could either be done by creating different tax authorities per region or in one tax authority with rates for
all regions and corresponding splits by Tax Conditions.

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Including Tax jurisdiction codes in SAP

In the case where tax jurisdiction codes should be used then a corresponding entry in the table TTXD in SAP
can be found. Here the format of the tax jurisdiction code is maintained and if the processing is done in SAP
or by an external partner.
When using TXJCDs for the same tax use case the tax codes stay the same for all regions but only the
TXJCDs differs.
TXJCDs are not available in Concur and therefore a mapping or determination in a BAdI is required.
For Canada the TXJCDs can be determined in a mapping. This mapping can be called from the transaction
CTE_SETUP è Financial Posting è Tax Jurisdiction Codes.
The country subcodes coming from Concur must be mapped to the TXJCDS in SAP.

A default mapping can’t be provided because the SAP TXJCDs can be customer specific. Following
are the default Concur country subcodes:

• CA-AB: Alberta

• CA-BC: British Columbia

• CA-MB: Manitoba

• CA-NB: New Brunswick

• CA-NL: Newfoundland and Labrador

• CA-NS: Nova Scotia

• CA-NT: Northwest Territories

• CA-NU: Nunavut

• CA-ON: Ontario

• CA-PE: Prince Edward Island

• CA-QC: Quebec

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 • CA-SK: Sasketchewan

• CA-YT: Yukon Territory

For all other countries and use cases the BAdI BADI_CTE_FIN_POST_DOC_CHANGES method
CHANGE_TAX_JURISDICTION_CODE need to be implemented.

With external tax providers

The handling of tax jurisdiction codes with external providers is like the handling with TXJCDS. The major
difference is that the calculation of tax amounts is not done within SAP based on the configuration of the tax
code plus TXJCD, but is done in an external system.
This means there is no need to maintain the exact tax rates in SAP but the tax codes are maintained in a
more generic way. Because of this, there could be more lines used in the SAP tax code configuration as tax
types coming over from Concur.
Example:
An expense item includes Canadian GST and QST. This means the JSON sent from Concur includes two
tax items. In SAP the tax configuration is generic and a line item for all potential tax types is maintained:

This means in this case in total 6 lines are available. In such a case the posting is not possible because the
number of Concur tax items doesn’t match the number of tax items in SAP.

Solution:
The number of tax items from Concur must be adjusted to the number of items in the SAP tax codes. This
means dummy tax authorities should be created in Concur or if possible the number of tax items in the SAP
tax code should be reduced.

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Non-supported use cases

Concur Tax Calculation Method: Full Tax

In this case the full amount of the expense item will be classified as tax amount.
SAP can’t handle this because taxes always must have a connection to an expense item, e.g. to set the tax
base amount. In this case this item would be transferred as stand-alone item without any connection to an
expense item and the posting would fail.

Multiple non-deductible taxes with NAV handling

In the case where multiple tax items are used (e.g. for Canada) we only support the following posting types
for non-deductible postings:
- Deductible tax configuration with 0% (no posting, no tax reporting)

- Non-deductible tax configuration with the correct tax percentage but tax reporting only (no posting,
tax reporting)

Posting of non-deductible taxes to separate expense accounts (e.g. with transaction key NAV) is not
supported.

Swedish Tax Calculation for Entertainment documents

Currently the data transferred for Swedish entertainment receipts is not transferred correctly from Concur.
For that reason, a BAdI implementation is required to support this use case.

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