Vertex Indirect Tax Accelerator For SAP ERP Implementation Guide

Implementation Guide
Vertex® Indirect Tax Accelerator for SAP ERP

Version 3.0
For Vertex® Indirect Tax O Series®
May 2017
Copyright and legal notices
Copyright © 2017 Vertex Global Tax Solutions Ireland Holdings. All rights reserved.
This documentation may not be reproduced, displayed, distributed, modified, posted, republished, or
transmitted in any form or by any means, without the prior written consent of Vertex Global Tax
Solutions Ireland Holdings or its affiliates (collectively, “Vertex”), except as otherwise specified in a valid,
current Vertex license agreement or allowed by law.
Disclaimers
The information contained in this documentation is designed to help users in regard to the subject
matter covered. Some of it may be based upon interpretations of federal, state, foreign and other tax
laws and regulations. Each entity is responsible for making its own determination of how such laws and
regulations apply to its own circumstances and for evaluating the capabilities of, and all data and results
generated by, any product that is described in this documentation. Vertex is not engaged in providing
legal, tax or accounting advice or services and the information contained in this documentation or in any
product cannot replace the advice of competent legal counsel. Further, the information in this
documentation is subject to change without notice and is not warranted to be error-free. If you find any
errors, please report them to us in writing.
Trademarks and Service Marks
The trademarks, logos and service marks ("marks") displayed in this documentation are the property of
Vertex or other third parties. Users are not permitted to use these marks without the prior written
consent of Vertex or the third party that may own the mark.
Third Party Products
Copies of the licenses for some third-party products included with a Vertex product may be found in or
with the installation materials for that product.
Contents
Preface ............................................................................................................... 5
About Vertex and our services .................................................................................................. 5
Finding information about the SAP Tax Accelerator ........................................................... 7
About this guide ........................................................................................................................ 8
Accelerator Authorizations................................................................................. 9
Accelerator program authorizations ......................................................................................... 9
Accelerator Program ................................................................................................................. 9
Special Authorizations ............................................................................................................... 9
Notes ......................................................................................................................................... 9
Any program where a transport is to be created ..................................................................... 9
Ability to create transports ....................................................................................................... 9
Only necessary if you want to create a transport request to save the entries of that screen. 9
Thread Testing Program ............................................................................................................ 9
SM37 Access .............................................................................................................................. 9
SM37 access is needed to view the background job status...................................................... 9
Maintenance Screen Authorization Groups............................................................................ 10
Steps to change the authorization on Vertex tables: ....................................................... 10
Vertex SIC - User Authorization............................................................................................... 11
Overview ........................................................................................................................... 11
Scope ................................................................................................................................. 11
SAP Configuration.............................................................................................................. 11
Configuring Vertex Tax Calculation in SAP for U.S. and Canada .........................16
SAP Configuration.................................................................................................................... 17
Tax Procedure for U.S.............................................................................................................. 19
Tax Procedure for CA............................................................................................................... 20
Specify Structure for Tax Jurisdiction Code ............................................................................ 22
Activate External Tax Calculation ............................................................................................ 22
Assign Tax Codes for Non-Taxable Transaction (OBCL) .......................................................... 23
Tax Codes Setup (FTXP) ........................................................................................................... 23
Enabling Tax Calculations Outside U.S. and Canada...........................................26

Overview ................................................................................................................................. 27
Vertex Tax Procedure for VAT Countries ................................................................................ 27
Activating Vertex for VAT Countries ....................................................................................... 29
Assign Tax Codes for Non-Taxable Transaction (OBCL) .......................................................... 29
Tax Codes Setup (FTXP) ........................................................................................................... 30
SD Access Sequence for VAT ................................................................................................... 31
SD Pricing Condition Types for VAT......................................................................................... 32
SD tax determination rules for VAT ........................................................................................ 36
May 2017  Page 3

Sales and Distribution condition records for VAT ................................................................... 36
Sales and Distribution Pricing Procedure for VAT ................................................................... 37
Freight and Surcharges ......................................................................................38

Freight Handling ...................................................................................................................... 39
Freight on a separate line item ......................................................................................... 39
Freight included on line item ............................................................................................ 39
Freight and the Document Currency feature .................................................................... 40
Surcharge Handling ................................................................................................................. 41
Surcharges and the Document Currency feature ............................................................. 42
Accelerator Default Configuration .....................................................................43

Vertex Configuration Settings ................................................................................................. 44
SIC Tax Mapping Configuration ......................................................................................... 44
Accelerator Parameters GUI ............................................................................................. 45
Vertex Data Mapping .............................................................................................................. 50
Vertex Queue Monitor ............................................................................................................ 51
Terminology ......................................................................................................52
Glossary of Terms .................................................................................................................... 53
May 2017  Page 4

Vertex® Indirect Tax Accelerator for SAP ERP Implementation Guide
Preface
Preface
This preface contains information about Vertex services, Vertex® Indirect Tax O
Series®, and its documentation.
About Vertex and our services

Vertex Inc. is the leading provider of corporate tax software and services for
companies of all sizes, from small to medium-sized businesses to global
multinationals. Vertex provides solutions in every major line of tax including
income, sales and consumer use, value added, and payroll. Vertex also offers
tailored solutions for specific industries including retail, communications,
hospitality, and leasing.
Vertex has offices in Berwyn, Pennsylvania; Sarasota, Florida; Naperville, Illinois;

London, United Kingdom; and São Paulo, Brazil. For office addresses and
telephone numbers, go to http://www.vertexinc.com/contact.
May 2017  Page 5

Preface
Vertex services
Vertex provides the following services:
D
For... Go to...
Technical questions Vertex Product Support

about your products Phone: 800.281.1900 (Monday through Friday, 8:15 A.M. to
8:00 P.M. United States Eastern Time)
Web: https://my.vertexinc.com/
Documentation, The myVertex customer portal
downloads, forums, Web: https://my.vertexinc.com/
service requests, and
up-to- the-minute
information about tax
rates, tax rules, and
jurisdictions
Questions about your Vertex Account Services
licensing agreement, Phone: 800.355.3500 or 610.640.4200
license renewal,
Web: www.vertexinc.com/contact
invoicing
arrangements, or
obtaining license files
for your products
Regional training Vertex Training
classes, web-based Phone: 877.455.2645 (Monday through Friday, 8:15 A.M. to
training classes, or on- 8:00 P.M. United States Eastern Time) option #2
site training at your
Web: www.vertexinc.com/Support/training
facility
Professional services Vertex Consulting
that facilitate your O Phone: 800.355.3500, option 2
Series integration and
implementation
May 2017  Page 6

Preface
Finding information about the SAP Tax Accelerator

Vertex provides documentation for the tasks that you must complete to use the
SAP Tax Accelerator. Accelerator Note release information is available on the
myVertex customer portal (https://my.vertexinc.com).
Note: Use myVertex to access the online Knowledge Center, submit a Service
Request, or visit the Forums where you can communicate with other
Vertex users about tips, tricks, and best practices.
D
Document Description
Provides installation instructions for the Tax Accelerator for
Vertex® Indirect Tax Accelerator for
the Vertex® Indirect Tax O Series®.
SAP ERP Installation Guide
Intended audience: SAP technical team (Basis),
Details the process of using the O Series Tax Assist feature
Vertex® Indirect Tax Accelerator for to assign SAP Tax Codes to Value Added Tax (VAT)
SAP ERP Tax Code Mapping User's transactions.
Guide Intended audience: O Series functional team and SAP
functional team.
Provides an overview of the Tax Accelerator and describes
Vertex® Indirect Tax Accelerator for how the Tax Accelerator works with SAP and Vertex®
SAP ERP User's Guide Indirect Tax O Series®.
Intended audience: SAP functional team and/or end-users.
Provides an overview of changes and additions to the Tax
Accelerator features and functions.
SAP ERP Release Notes
Intended audience: Everyone
Provides information on configuring SAP for Vertex. Covers
Vertex® Indirect Tax Accelerator for authorizations, VAT configuration and US configuration
SAP ERP Implementation Guide tasks.
Intended audience: SAP functional team
Used by Vertex Consulting or other Vertex implementation
partners to activate the Accelerator.
SAP ERP Activation Guide
Intended audience: SAP technical team (Development)
May 2017  Page 7

Preface
About this guide

For Vertex O Series implementations that use the Vertex® Indirect Tax
Accelerator for SAP ERP connector (Tax Accelerator), this guide describes what
you need to know to understand how SAP should be configured to work with the
Tax Accelerator.
This guide provides the following:
• Accelerator Authorizations
• Configuring SAP for U.S. and Canada taxes
• Enabling tax calculations outside of the U.S. and Canada
• Default Accelerator configuration entries
This guide is designed for SAP IT personnel who install and set up the Tax
Accelerator to work with Vertex O Series. This person should be very familiar
with SAP applications.
May 2017  Page 8

Chapter 1
Accelerator Authorizations
Certain features of the Accelerator require special permissions in order to be run
properly. This section covers any programs which require special authorizations
as well as authorizations needed for SIC and table authorizations.
In this chapter
Maintenance Screen Authorization Groups.................................. 10
Vertex SIC - User Authorization..................................................... 11
Accelerator program authorizations

Accelerator Program Special Authorizations Notes
Only necessary if you want to create a
Any program where a Ability to create
transport request to save the entries of that
transport is to be created transports
screen.
SM37 access is needed to view the
Thread Testing Program SM37 Access
background job status
May 2017  Page 9

Chapter 1. Accelerator Authorizations  Maintenance Screen Authorization Groups
Maintenance Screen Authorization Groups

Some Accelerator tables have SAP generated maintenance screen. The
maintenance screens are delivered without authorization group (“&NC&”) due to
different requirements from different companies.
If required, Vertex recommends the use of transaction SM30V_DDAT to adjust

authorization group of Vertex tables’ maintenance screens.
Steps to change the authorization on Vertex tables:

1. Go to transaction SM30V_DDAT.
2. Click
3. Enter /VERTEX/ then click to go to the Vertex tables.
4. Maintain authorizations as necessary. Changing authorization group using
this transaction does not require the repair key for the /VERTEX/ namespace.
May 2017  Page 10

Chapter 1. Accelerator Authorizations  Vertex SIC - User Authorization
Vertex SIC - User Authorization

Overview
When setting up the initial user for the Vertex RFC Destination you will need
specific user authorizations to connect to SAP through RFC. This document covers
the process to import the necessary authorizations through a role Vertex has
created specifically for the SIC user.
Once this role has been imported you will then setup your system (non-dialog)
user and add this role to their account. You can then begin processing tax
requests through SAP and Vertex Indirect Tax for O Series.
Scope
This section outlines the steps necessary to import the role and setup a profile
for that role. The scope of this document shall cover only the role import process
and profile creation. Creating the SIC user and assigning the role are not in the
scope of this document.
There are two Vertex defined user roles:
• Z_VTX_SIC_ROLE – A role with open RFC authorizations. This is the
recommended role because it does not limit the type of RFC the user may
use. This role is somewhat future-proof in the fact that it does not limit the
functions that can be utilized.
• Z_VTX_ACC_SEC_ROLE – A new role designed for Accelerator customers who
are very concerned about security. This role is very limited to just the
function groups used by the Accelerator. This does not account for any new
features that might be added in the future so this role may need to be
changed if any new function groups are added with Accelerator
enhancements.
SAP Configuration
1. Go to transaction PFCG.
May 2017  Page 11

2. Go to Role > Upload.
3. Click the check mark, if it shows up.
4. Navigate to the Z_VTX_SIC_ROLE.SAP (or Z_VTX_ACC_SEC_ROLE.SAP) file and

click Open.
May 2017  Page 12

5. If prompted with a SAP GUI Security windows that asks if you want to grant
access to the file, just click allow.
6. Click the green check mark.
7. This message will show up at the bottom of the screen when the role
uploads:
8. Create the profile for the role. In that same window click the Change icon.
May 2017  Page 13

9. Click on the Authorizations tab.
10. Click on the Change Authorization Data icon.
May 2017  Page 14

11. Click the Generate icon.
12. Change the name of the default profile to say VTX_SIC and click the green
check mark.
13. Click the save icon at the top .

14. Now create the Tax Link user (t-code SU01) and add the new role that was
just imported. You will now be able to connect to the SIC through RFC.
May 2017  Page 15

Chapter 2
Configuring Vertex Tax Calculation in SAP

for U.S. and Canada
Please refer to the SAP document R3 Tax Interface Configuration Guide.pdf here:
https://assets.cdn.sap.com/sapcom/docs/2017/01/f07e198b-a17c-0010-82c7-
eda71af511fa.pdf.
The above document explains in detail the configuration steps to compute US and
Canadian Sales & Use Taxes using an external tax system. It covers Standard SAP
Sales & Use Tax Interface System to 3rd party tax packages.
In this chapter
SAP Configuration.......................................................................... 17
Tax Procedure for U.S.................................................................... 19
Tax Procedure for CA..................................................................... 20
Specify Structure for Tax Jurisdiction Code .................................. 22
Activate External Tax Calculation .................................................. 22
Assign Tax Codes for Non-Taxable Transaction (OBCL) ................ 23
Tax Codes Setup (FTXP) ................................................................. 23
CA Input Tax Code ................................................................... 24
CA Output Tax Code ................................................................ 25
Tax Code Properties ................................................................ 25
Default Tax Mapping for CA .................................................... 25
May 2017  Page 16

Chapter 2. Configuring Vertex Tax Calculation in SAP for U.S. and Canada  SAP Configuration
SAP Configuration
Note: Using this guide to implement SAP integration to Vertex O Series requires a good
understanding of SAP FI, SD and MM configuration including tax and pricing procedure setup.
Below is a list of typical SAP configurations required to setup SAP integration to external
system in general. This document provides information on some configuration steps that
requires specific setting for Vertex and may not contain detail on general SAP configuration
steps.
No T-Code Short description Path

1 SPRO Check Calculation IMG > Financial Accounting > Financial accounting global settings > Tax
Procedure - Define on sales/purchases > Basic Settings > Check Calculation Procedure >
Procedures Define Procedures
2 SPRO Check Calculation IMG > Financial Accounting > Financial accounting global settings > Tax
Procedure - Define on sales/purchases > Basic Settings > Check Calculation Procedure >
Condition Types Define Condition Types
3 SPRO Check and Change IMG > Financial Accounting > Financial accounting global settings > Tax
Settings for Tax on sales/purchases > Basic Settings > Check and Change Settings for
Processing Tax Processing
4 OBBG Assign country to IMG > Financial Accounting > Financial accounting global settings > Tax
calculation procedure on sales/purchases > Basic Settings > Assign country to calculation
procedure
5 OBCO Specify structure for IMG > Financial Accounting > Financial accounting global settings > Tax
tax jurisdiction code on sales/purchases > Basic Settings > Specify structure for tax
jurisdiction code
6 OBETX Define Number IMG > Financial Accounting > Financial accounting global settings > Tax
Ranges for External on sales/purchases > Basic Settings > External tax calculation > Define
Tax Number Ranges for External Tax Documents
7 SPRO Define Logical IMG > Financial Accounting > Financial accounting global Settings > Tax
Destination on sales/purchases > Basic Settings > External tax calculation > Define
Logical Destination
8 SPRO Activate External IMG > Financial Accounting > Financial accounting global Settings > Tax
Updating on sales/purchases > Basic Settings > External tax calculation > Activate
External Updating
9 SPRO Activate External Tax IMG > Financial Accounting > Financial accounting global Settings > Tax
Calculation on sales/purchases > Basic Settings > External tax calculation > Activate
External Tax Calculation
10 OB40 Define tax accounts IMG > Financial Accounting > Financial accounting global settings > Tax
on sales/purchases > Posting > Define tax accounts
11 FTXP Define tax codes for IMG > Financial Accounting > Financial accounting global settings > Tax
sales and purchases on sales/purchases > Calculation > Define tax codes for sales and
purchases
May 2017  Page 17

Chapter 2. Configuring Vertex Tax Calculation in SAP for U.S. and Canada  SAP Configuration
12 OBCL Allocate tax codes for IMG > Financial Accounting > Financial accounting global settings > Tax
non-taxable on sales/purchases > Posting > Allocate tax codes for non-taxable
transactions transactions
13 OVK4 Define tax relevancy IMG > Sales and Distribution > Basic functions > Taxes > Define tax
of master records > relevancy of master records > Control: Materials
Control: Materials
14 OVK3 Define tax relevancy IMG > Sales and Distribution > Basic functions > Taxes > Define tax
of master records > relevancy of master records > Control: Customers
Control: Customers
15 OVK1 Define tax IMG > Sales and Distribution > Basic functions > Taxes > Define tax
determination rules determination rules
16 SPRO Define tax Condition IMG > Sales and Distribution > Basic functions > Pricing > Pricing
Types Control > Define Condition Types
17 OX10 Plant > Define tax IMG > Materials Management > Purchasing > Environment Data >
jurisdiction Define tax jurisdiction > Details
18 M/06 MM > Conditions > IMG > Materials Management > Purchasing > Conditions > Define Price
Define condition Determination Process > Define condition types
Types
19 OMKK Set tax indicator for IMG > Materials Management > Purchasing > Taxes > Set tax indicator
material for material
20 OMKN Assign tax indicators IMG > Materials Management > Purchasing > Taxes > Assign tax
for plants indicators for plants
21 OMKM Set tax indicator for IMG > Materials Management > Purchasing > Taxes > Set tax indicator
plant for plant
22 OBCN Change settings for IMG > Financial Accounting > Financial accounting global settings > Tax
tax processing on sales/purchases > Basic Settings > Check and change settings for tax
processing
23 OMKO Assign tax indicators IMG > Materials Management > Purchasing > Taxes > Assign tax
for account indicators for account assignments
assignments
24 OMKL Set tax indicator for IMG > Materials Management > Purchasing > Taxes > Set tax indicator
account assignment for account assignment
May 2017  Page 18

Chapter 2. Configuring Vertex Tax Calculation in SAP for U.S. and Canada  Tax Procedure for U.S.
Tax Procedure for U.S.

Path: IMG > Financial Accounting > Financial accounting global settings > Tax on
sales/purchases > Basic Settings > Check Calculation Procedure > Define Procedures
Vertex recommends SAP standard tax procedure TAXUSX to handle US Sales and Use Tax
calculation/postings. If a modification is required due to specific tax requirements, it is best
practice to copy and modify the tax procedure to a new tax procedure and then modify it.
May 2017  Page 19

Chapter 2. Configuring Vertex Tax Calculation in SAP for U.S. and Canada  Tax Procedure for CA
Tax Procedure for CA

In Canada, four types of sales taxes are levied. These are as follows:
• Goods and Services Tax (GST), a value added tax on the supplies of goods or services
purchased in Canada and levied by the federal government (Revenue Canada).
• Provincial Sales Tax (PST) and Retail Sales Tax (RST) are sales taxes and are collected
and levied by the provinces.
• Harmonized Sales Tax (HST), a consumption tax in used in provinces where both the
federal goods and services tax (GST) and the provincial sales tax (PST) have been
combined into a single value added sales tax and levied by the federal government.
• Quebec Sales Tax (QST), not a true HST, represents federal goods and services tax
and the Quebec sales tax and is considered a value added tax and is levied by
Quebec Province.
May 2017  Page 20

Chapter 2. Configuring Vertex Tax Calculation in SAP for U.S. and Canada  Tax Procedure for CA
Custom Tax Processing / Account Key

sales/purchases > Basic Settings > Check and Change Settings for Tax Processing
1. Copy VS1 to ZS1 and uncheck “Not Deductible”.
2. Similar to ZS1, copy VS3 to ZS3 and uncheck “Not Deductible”.

3. Copy MWS to ZW6 and change the Description.
May 2017  Page 21

Chapter 2. Configuring Vertex Tax Calculation in SAP for U.S. and Canada  Specify Structure for Tax
Jurisdiction Code
Specify Structure for Tax Jurisdiction Code

sales/purchases > Basic Settings > Specify structure for tax jurisdiction code
Please complete the following:

1. Enter tax procedure under “Schema”
2. Enter name/description
3. Enter Jurisdiction Structure for Vertex: 2 / 3 / 4 / 1
4. Activate/check “Tax per Line Item” (Tx Ln)
Activate External Tax Calculation

Path: IMG > Financial Accounting > Financial accounting global Settings > Tax on
sales/purchases > Basic Settings > External tax calculation > Activate External Tax Calculation
The External System must be set as shown below.

Please use external tax flag as follows:
- US Use ‘V’ (for Sales and Use Tax with Vertex)
- CA Use ‘H’ (for Hybrid Tax)
Note: Set the RFC Destination according to your configuration. It does not have
to be “VERTEX”.
Update RFC Destination will follow RFC Destination if it is not filled in.
May 2017  Page 22

Chapter 2. Configuring Vertex Tax Calculation in SAP for U.S. and Canada  Assign Tax Codes for Non-Taxable
Transaction (OBCL)
Assign Tax Codes for Non-Taxable Transaction (OBCL)

sales/purchases > Posting > Allocate tax codes for non-taxable transactions
Please maintain Non-Taxable jurisdiction code in OBCL with 7700000000 for US and CA
company codes.
It is optional to maintain non-taxable tax codes in OBCL.
It is also possible to use Tax Relevancy setting in Tax Code Properties (FTXP) to default zero
tax.
Tax Codes Setup (FTXP)

sales/purchases > Calculation > Define tax codes for sales and purchases
Vertex recommends to use standard SAP tax codes for US Sales and Use Tax such as O1, I1,
and U1. Please refer SAP document R3 Tax Interface Configuration Guide for explanation of
setup of these tax codes.
For CA tax codes, please use recommendation below.
May 2017  Page 23

Chapter 2. Configuring Vertex Tax Calculation in SAP for U.S. and Canada  Tax Codes Setup (FTXP)
CA Input Tax Code
Full Partial
Recoverability Recoverability
Cond. Account
Step Description GL Account
Type Key PST PST PST PST
Paid to Self- Paid to Self-
Vendor Assess Vendor Assess
100 BASB Base Amount
105 Calculated Call
200 Shared with G/L
210 XP1I A/P Sales Tax 1 Inv. NVV
N/A (Distributed
220 XP2I A/P Sales Tax 2 Inv. NVV 100 100 100 100 to Expense)
230 XP3I A/P Sales Tax 3 Inv. NVV
Input tax
240 XP4I A/P Sales Tax 4 Inv. VSF 100 100 GST/HST
250 XP5I A/P Sales Tax 5 Inv. VSC 100 100 Input tax QST
N/A (Distributed
260 XP6I A/P Sales Tax 6 Inv. NVV 100 100 to Expense)
300 Expensed
A/P Sales Tax 1
310 XP1E Exp. ZS1 100 100 100 100 Clearing GL Acct
A/P Sales Tax 2
320 XP2E Exp. VS2
A/P Sales Tax 3
330 XP3E Exp. ZS3 100 100 100 100 Clearing GL Acct
A/P Sales Tax 4
340 XP4E Exp. VS4
350 XP5E A/P Sales Tax 5 Exp VS4
360 XP6E A/P Sales Tax 6 Exp VS4
400 Self-assessment
410 XP1U A/P Sales Tax 1 Use MW1
420 XP2U A/P Sales Tax 2 Use MW2 -100 -100 Input tax PST
430 XP3U A/P Sales Tax 3 Use MW3
440 XP4U A/P Sales Tax 4 Use MW4 -100 -100 Clearing GL Acct
450 XP5U A/P Sales Tax 5 Use MW5 -100 -100 Clearing GL Acct
460 XP6U A/P Sales Tax 6 Use ZW6 -100 -100 Clearing GL Acct
May 2017  Page 24

Chapter 2. Configuring Vertex Tax Calculation in SAP for U.S. and Canada  Tax Codes Setup (FTXP)
CA Output Tax Code

Output
Account
Step Cond. Type Description Tax GL Account
Key
Code
500 Accrued
510 XR1 A/R Sales Tax 1 MW1 100 Output tax GST/HST
520 XR2 A/R Sales Tax 2 MW2 100 Output tax PST
530 XR3 A/R Sales Tax 3 MW3 100 Output tax QST
540 XR4 A/R Sales Tax 4 MW4
Tax Code Properties

Use below table for guidelines for setting up tax code properties.
Tax Code Tax Type Relevant to tax Tax Category
I0 (Exempt Input Tax) V 2 (Blank) or '0'
I1 (Tax Paid to Vendor) V (Blank) or '0' (Blank) or '0'
U1 (Self-Assessment) V (Blank) or '0' 1
O0 (Exempt Output Tax) A 2 (Blank) or '0'
O1 (Output Tax) A (Blank) or '0' (Blank) or '0'
CA Input Tax Code V (Blank) or '0' 1
CA Output Tax Code A (Blank) or '0' (Blank) or '0'
Default Tax-Mapping for CA

SAP Integrated Component (SIC) provides default tax-mapping as follows:
1 – Country
2 – Province
However for Canada input taxes, changes need to be done to the tax-mappings.xml as
follows:
3 – Input QST
4 – Recoverable portion of GST (for partial recoverability requirement)
5 – Recoverable portion of QST (for partial recoverability requirement)
6 – Total non-recoverable (for partial recoverability requirement)
With Accelerator 3.0, it is possible to configure SIC tax mappings inside of SAP (using t-code
/VERTEX/TAXMAPPINGS), which already has the above mapping for CA. Please refer to
Accelerator 3.0 User Guide on how to enable SIC Tax Mapping Configuration in Accelerator.
May 2017  Page 25

Chapter 3
Enabling Tax Calculations Outside U.S. and

Canada
This chapter provides details about enabling tax calculations for jurisdictions that are not in
the U.S. or Canada.
In this chapter
Overview ....................................................................................... 27
Vertex Tax Procedure for VAT Countries ...................................... 27
Activating Vertex for VAT Countries ............................................. 29
Assign Tax Codes for Non-Taxable Transaction (OBCL) ................ 29
Tax Codes Setup (FTXP) ................................................................. 30
VAT Input Tax Code ............................................................... 30
VAT Output Tax Code ............................................................ 31
Tax Code Properties .............................................................. 31
Default Tax Mappings for VAT .............................................. 31
SD Access Sequence for VAT ......................................................... 31
SD Pricing Condition Types for VAT............................................... 32
SD tax determination rules for VAT .............................................. 36
Sales and Distribution condition records for VAT ......................... 36
Sales and Distribution Pricing Procedure for VAT ......................... 37
May 2017  Page 26

Chapter 3. Enabling Tax Calculations Outside U.S. and Canada  Overview
Overview
SAP standard integration with external tax system was built for tax calculation with
jurisdiction code (U.S. and Canada) only. However, the need of using external tax system for
other countries than U.S. and Canada is raising, especially for multinational companies.
Vertex addresses this requirement with Accelerator, which make it possible to use Vertex for
VAT calculation using SAP’s built-in external tax integration for U.S and Canada, but without
the need to use tax jurisdiction code.
Configuration steps required to enable Vertex for VAT in many ways is similar with U.S. and
Canada activation. This section provides information on settings that are specific for VAT
countries.
Vertex Tax Procedure for VAT Countries

Below is Vertex recommended tax procedure for VAT countries.
For Hybrid tax (mix of Value Added Tax and sales tax) please use the same tax procedure as
for Canada. Sample of country with hybrid tax is China.
It is recommended to copy the tax procedure for each countries in scope, although it is
possible to use one tax procedure for more than one country.
Note: Condition ZVT2 and ZSA2 are optional. These condition types are only required to
handle partial recoverability on AP invoices.
May 2017  Page 27

Chapter 3. Enabling Tax Calculations Outside U.S. and Canada  Vertex Tax Procedure for VAT Countries
Custom Condition Types

sales/purchases > Basic Settings > Check Calculation Procedure > Define Condition Types
Copy condition XP4I to ZVT1, enter text (example: Vertex Input VAT) and save. This will be
used for Input VAT.
1. (Optional) Copy ZVT1 to ZVT2, enter text and save. This will be used for the non-
recoverable portion of input tax paid to vendor.
2. (Optional) Copy XP4U to ZSA2, enter text and save. This will be used for the non-
recoverable portion of input tax paid to vendor (to offset Input VAT GL Account).
3. Copy ZVT1 to ZRC1, enter text and save. This will be used for reverse charge (input
acquisition).
4. Copy ZSA2 to ZSA4, enter text and save. This will be used for reverse charge (output
acquisition).
5. Copy condition XR1 to ZAR1, enter text and save. This will be used for Output VAT.
May 2017  Page 28

Chapter 3. Enabling Tax Calculations Outside U.S. and Canada  Activating Vertex for VAT Countries
Activating Vertex for VAT Countries

Path: Accelerator Area Menu > Vertex Configuration Settings > Activate External System for
VAT (/VERTEX/ZTTXD)
Please complete the following:

1. Enter tax procedure under “Schema”
2. Enter External System flag:
a. For Value Added Tax, use ‘E’
b. For Hybrid (mix of VAT and sales tax, e.g. China), use ‘H’
3. Activate/check “Tax per Line Item” (Tx Ln)
4. Enter ‘TAXDOC00’ under Interface Version
5. Enter RFC Destination for Vertex
Assign Tax Codes for Non-Taxable Transaction (OBCL)

sales/purchases > Posting > Allocate tax codes for non-taxable transactions
Please make sure Non-Taxable jurisdiction code in OBCL is blank for VAT company codes.
It is optional to maintain non-taxable tax codes in OBCL.
Unlike tax code for US or CA (jurisdictional) that has Tax Relevancy setting in Tax Code
Properties (FTXP) to default zero tax (by setting it to ‘2’), SAP hides this field in tax code
properties for countries with non-jurisdictional setting.
In order to default zero tax for VAT tax code other maintaining the tax code in OBCL (OBCL
can only be setup with one tax code), it can be configured with Accelerator setting: Country
Tax Code Setting (/VERTEX/TCI). Please refer to Accelerator 3.0 User Guide for detail on this
setting.
May 2017  Page 29

Chapter 3. Enabling Tax Calculations Outside U.S. and Canada  Tax Codes Setup (FTXP)
Tax Codes Setup (FTXP)

sales/purchases > Calculation > Define tax codes for sales and purchases
For VAT countries Accelerator has Dynamic Tax Code functionality with following benefit:
1. Any sales or purchase process can be setup with one tax code: the calling tax code.
One calling tax code for sales/AR, and one calling tax code for purchase/AP.
2. Vertex O Series decides taxability and determine a new tax code (response tax code)
according to tax result, and send it back to SAP.
3. Accelerator changes/flips the calling tax code to the response tax code within the SAP
transaction/document.
Refer to the next page for the Vertex recommended VAT tax code setup:
VAT Input Tax Code

Full Recoverability Partial Recoverability
Resp Resp
Cond. Account GL
Step Description Calling TC: Resp TC: Calling TC: Resp TC:
Type Key Account
Tax Rev Domestic Tax Rev Domestic
Code Charge /others Code Charge /others
Base
100 BASB Amount
Vertex
Calculated
110 Call
A/P - Input
200 Tax
Vertex
210 ZVT1 Input VAT VST 100 100 100 100 Input VAT
N/A
(Distribut
Vertex VAT ed to Exp
220 ZVT2 Non-Rec NVV 100 100 Item)
Vertex
Offset Non-
230 ZSA2 Rec MW2 -100 -100 Input VAT
Vertex Rev Rev
240 ZRC1 Charge In ESE 100 100 100 100 Charge In
Rev
Vertex Rev Charge
250 ZSA4 Charge Out ESA -100 -100 -100 -100 Out
May 2017  Page 30

Chapter 3. Enabling Tax Calculations Outside U.S. and Canada  SD Access Sequence for VAT
VAT Output Tax Code

Cond. Account Calling Response
Step Description GL Account
Type Key Tax Code Tax Code
300 A/R Output Tax
310 ZAR1 Output VAT MW1 100 100 Output VAT
Tax Code Properties

Use below table for guidelines for setting up tax code properties.
Tax Code Tax Type Target Tax Code Reporting Country
Enter when Plants
VAT Input Tax V For Deferred Tax Code Abroad is ON
Enter when Plants
VAT Output Tax A For Deferred Tax Code Abroad is ON
Default Tax Mappings for VAT

SAP Integrated Component (SIC) provides default tax-mapping as follows:
1 – Input VAT
4 – Reverse Charge
However to handle partial recoverability, a new tax-mapping need to be added to the tax-
mappings.xml as follows:
2 – Non Recoverable VAT
With Accelerator 3.0, it is possible to enable SIC Tax Mapping Configuration

(/VERTEX/TAXMAPPINGS), which has above mapping for non-recoverable VAT as default.
Please refer to Accelerator 3.0 User Guide on how to enable SIC Tax Mapping Configuration
in Accelerator.
SD Access Sequence for VAT

Path: IMG > Sales and Distribution > Basic Functions > Pricing > Pricing Control > Define
Access Sequences > Maintain Access Sequences
Create the new SD access sequence for VAT, e.g. ZVTX, or copy existing access sequence
(such as MWST or UTX1) based on tax requirement. In most cases, condition table 2
(Domestic Taxes) is sufficient to default the calling tax code.
May 2017  Page 31

Chapter 3. Enabling Tax Calculations Outside U.S. and Canada  SD Pricing Condition Types for VAT
SD Pricing Condition Types for VAT

Path: IMG > Sales and Distribution > Basic Functions > Pricing > Pricing Control > Define
Condition Types > Maintain Condition Types
Similar to pricing condition RVAXUD, Vertex recommends to use formula 500/501 so Vertex
is called once for multiple items, although there is no max tax requirement for VAT.
Following is suggested steps and condition types:
1. Copy condition type UTXJ to ZTXJ, and assign the access sequence created in
previous step.
May 2017  Page 32

2. Copy condition UTXD to ZTXD, assign the same access sequence as for ZTXJ, and
enter ZTXJ as the reference condition type (RefConType).
May 2017  Page 33

3. Copy condition type UTXE to ZTXE.
May 2017  Page 34

4. Copy condition type XR1 to ZAR1.
May 2017  Page 35

Chapter 3. Enabling Tax Calculations Outside U.S. and Canada  SD tax determination rules for VAT
SD tax determination rules for VAT

Path: IMG > Sales and Distribution > Basic Functions > Define Tax Determination Rules
Specify the tax category ZTXJ for tax determination rules for VAT on the Define Tax
Determination page as shown in the following example:
Sales and Distribution condition records for VAT

Path: SAP Easy Access > Sales and Distribution > Master Data > Conditions > Select Using
Condition Type > Create/Change
Maintain condition record to default the tax code to calling tax code.
May 2017  Page 36

Chapter 3. Enabling Tax Calculations Outside U.S. and Canada  Sales and Distribution Pricing Procedure for
VAT
Sales and Distribution Pricing Procedure for VAT

Path: IMG > Sales and Distribution > Basic Functions > Pricing > Pricing Control > Define and
Assign Pricing Procedures > Maintain Pricing Procedures
For all tax relevant VAT pricing procedures, add following Vertex condition types and formula
below:
Condition
Value
Type
ZTXD 500
ZTXE 501
ZAR1 301
The following figure provides an example page with these values entered.
May 2017  Page 37

Chapter 4
Freight and Surcharges

This chapter describes how to configure freight and surcharges with the Accelerator.
In this chapter
Freight Handling ............................................................................ 39
Freight on a Separate Line ........................................................ 39
Freight Included on the Line ..................................................... 39
Freight and the Document Currency Feature ........................... 40
Surcharge Handling ....................................................................... 41
Surcharges and the Document Currency Feature..................... 42
May 2017  Page 38

Chapter 4. Freight and Surcharges  Freight Handling
Freight Handling
SAP can apply tax on freight charges in two ways, each with advantages and disadvantages.
Freight on a separate line item

SAP adds a separate line item with a freight material amount to the document. This enables
users to map various types of freight material to the appropriate O Series categories,
meeting their freight handling requirements. With this choice, any freight-based
configuration of SIC becomes irrelevant, since SIC and therefore O Series treats the freight
line as a separate and unique line item (product class).
Using separate freight line items offers the advantage of calculating freight taxability on the
basis of a taxability driver (product class) in O Series. You may prefer to do this when the
freight taxability scenarios are particularly complex.
Freight included on line item

Freight charges are included in the line item. Freight condition type should be part of your
SAP pricing procedure.
In the example below freight condition type is copied into subtotal 4 in the pricing procedure
and map it using the Accelerator Data Mapping tool into the FREIGHT_AM field.
If freight is included on the line item as freight condition type, a child line item for freight will
be generated by SIC.
May 2017  Page 39

Chapter 4. Freight and Surcharges  Freight Handling
SIC takes the tax base amount & freight amount and calculates a Sales or Use tax for each by:
• Forming a child line for each line item in the call to SIC when creating the O Series
XML request.
• Using the same parameters for the child line as the parameters that were entered in
the parent line, with the following exceptions:
o ExtendedPrice - Uses the SAP FREIGHT_AM parameter instead of AMOUNT.
o lineItemNumber - Uses the SAP POS_NO parameter plus the FreightOffset
value in the SIC configuration file (10000000 is the default value).
o productClass - Uses the FreightCode value in the SIC configuration file.
(SAPFREIGHT is the default value)
o productCode - Uses the parent line’s productClass.
o Quantity - Defaults to 1.
• If the FreightIncluded parameter in the SIC configuration file is set to true, SIC
subtracts the freight amount from the amount in the parent line item.
• When the calculation is done, tax amounts for the freight component are added to
the corresponding tax amounts for the parent line item. This is done because SAP
cannot accept the freight child line item separately.
Freight and the Document Currency feature

Currently only the first scenario, where freight is a separate line item, is
supported when using the document currency solution. This is because of the
way the base amount is handled on the parent line, the FREIGHT_AM field will
not be used and the freight line will not have the correct extended price.
May 2017  Page 40

Chapter 4. Freight and Surcharges  Surcharge Handling
Surcharge Handling
Surcharges work in a similar fashion to freight with a few minor differences:
• Surcharges only work for sales transactions.
• /VERTEX/SUR_CODE(1-5) - Pass the product class for the surcharge to this field in the
Data mapping tool.
• /VERTEX/SUR_AMT(1-5) - Pass the surcharge amount to this field in the Data
mapping tool.
In the below example we mapped a hard coded value of HANDLING to /VERTEX/SUR_CODE1.
We then mapped the KOMP-KZWI1 amount to /VERTEX/SUR_AMT1 for the child line’s
ExtendedPrice. Make sure to check the Numeric checkbox as the /VERTEX/SUR_AMT1 is a
string field data type. We used a condition which checks if handling fee is greater than zero.
May 2017  Page 41

Chapter 4. Freight and Surcharges  Surcharge Handling
Surcharges and the Document Currency feature

Currently surcharges are not supported when using the document currency solution. This is
because of the way the base amount is handled on the parent line, the /VERTEX/SUR_AMT*
field will not be used and the surcharge line will not have the correct extended price.
May 2017  Page 42

Chapter 5
Accelerator Default Configuration

This chapter shows screenshots of what comes with the default Accelerator configuration.
In this chapter
Vertex Configuration Settings ....................................................... 44
SIC Tax Mapping Configuration ................................................. 44
Accelerator Parameters GUI ..................................................... 45
TXJCD Lookup and Address Cleansing .................................. 45
Data Mapping Configuration ................................................ 46
Location Fields – Sales / AR................................................... 46
Location Fields – Purchasing / AP ......................................... 47
Customer & Vendor Registrations - Customer ..................... 47
Customer & Vendor Registrations - Vendor ......................... 47
Tax Jurisdiction Code Conversion Setup (ADRC)................... 48
Logging .................................................................................. 49
VAT Specific Requirements ................................................... 49
Company with VAT and US/CA Registrations ....................... 50
Vertex Data Mapping .................................................................... 50
Vertex Queue Monitor .................................................................. 51
May 2017  Page 43

Chapter 5. Accelerator Default Configuration  Vertex Configuration Settings
Vertex Configuration Settings

SIC Tax Mapping Configuration
By default SIC tax mappings are disabled. Below is a list of the default mappings.
May 2017  Page 44

Accelerator Parameters GUI

TXJCD Lookup and Address Cleansing
May 2017  Page 45

Data Mapping Configuration
Location Fields – Sales / AR
May 2017  Page 46

Location Fields – Purchasing / AP
Customer & Vendor Registrations - Customer
Customer & Vendor Registrations - Vendor
May 2017  Page 47

Other Mapping Setup
AP Tax Code Defaulting
Tax Jurisdiction Code Conversion Setup
May 2017  Page 48

Logging
VAT Specific Requirements
May 2017  Page 49

Chapter 5. Accelerator Default Configuration  Vertex Data Mapping
Company with VAT and US/CA Registrations
Vertex Data Mapping

Currently we deliver 3 default rules for data mapping. These rules may not be changed.
U.S. and Canada Company Code check – Input Tax
U.S. and Canada Company Code check – Output Tax
May 2017  Page 50

Chapter 5. Accelerator Default Configuration  Vertex Queue Monitor
Intercompany Billing
Vertex Queue Monitor

Queue Maintenance Tool
May 2017  Page 51

Chapter 6
Terminology
This chapter lists all of the abbreviations and SAP/Accelerator/O Series terminology and a
description for each.
In this chapter
Glossary of Terms .......................................................................... 53
May 2017  Page 52

Chapter 6. Terminology  Glossary of Terms
Glossary of Terms
Term Description
This refers to the Vertex developed SAP Integration Component. It is the
connector that takes SAP RFC and translates it to XML and vice-versa. It allows
SIC SAP to send tax calculations and jurisdiction lookups to O Series and get the
responses back in SAP. This is mandatory if you want to use Vertex as an
external tax system.
Abbreviation for SAP Transaction Code. A t-code is used in SAP to access

t-code functions or programs.
Example: t-code SE37 takes you to the Function Builder screen in SAP.
SAP Transaction Code for the main SAP configuration settings. This is where
SPRO most SAP configuration is done when setting up an external tax system to
communicate with SAP.
Another name for the Accelerator reports. This name was developed by LCR-
SPOT
Dixon who created and maintains the Accelerator reports.
The O Series Tax Journal. This is where all posting transactions are stored until a
Journal
Tax Journal Export is run to move them to the O Series reporting database.
Abbreviation for web services. O Series uses web services to do many of the
functions for Accelerator. Some examples are: CalculateTaxDoc – where the
WS calculations go, LookupTaxAreasDoc – where jurisdiction lookups go and
VertexVersion70 – where the O Series version information is pulled from the
Accelerator version list program.
Abbreviation for Value Added Tax. A type of consumption tax that is collected
VAT incrementally, based on the surplus value, added to the price on the work at
each stage of production. This tax type is used outside of the United States.
Remote Function Call. SAP standard interface communication protocol between

RFC
SAP systems.
Vertex Tax Area ID. A unique identifier for a tax jurisdiction. This is what
TAID
populates the SAP Tax Jurisdiction Code field.
TR Abbreviation for an SAP transport request.
TAXGM Abbreviation for the Accelerator Goods Movement solution.
May 2017  Page 53

Vertex Indirect Tax Accelerator For SAP ERP Implementation Guide

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Vertex Indirect Tax Accelerator For SAP ERP Implementation Guide

Caricato da

Copyright:

Formati disponibili

Implementation Guide

Vertex® Indirect Tax Accelerator for SAP ERP

Enabling Tax Calculations Outside U.S. and Canada...........................................26

May 2017  Page 3

Freight and Surcharges ......................................................................................38

Accelerator Default Configuration .....................................................................43

May 2017  Page 4

About Vertex and our services

Vertex has offices in Berwyn, Pennsylvania; Sarasota, Florida; Naperville, Illinois;

May 2017  Page 5

Technical questions Vertex Product Support

May 2017  Page 6

Finding information about the SAP Tax Accelerator

May 2017  Page 7

About this guide

May 2017  Page 8

Accelerator program authorizations

May 2017  Page 9

Maintenance Screen Authorization Groups

If required, Vertex recommends the use of transaction SM30V_DDAT to adjust

Steps to change the authorization on Vertex tables:

May 2017  Page 10

Vertex SIC - User Authorization

May 2017  Page 11

2. Go to Role > Upload.

3. Click the check mark, if it shows up.

4. Navigate to the Z_VTX_SIC_ROLE.SAP (or Z_VTX_ACC_SEC_ROLE.SAP) file and

May 2017  Page 12

May 2017  Page 13

9. Click on the Authorizations tab.

10. Click on the Change Authorization Data icon.

May 2017  Page 14

11. Click the Generate icon.

13. Click the save icon at the top .

May 2017  Page 15

Configuring Vertex Tax Calculation in SAP

May 2017  Page 16

No T-Code Short description Path

May 2017  Page 17

May 2017  Page 18

Tax Procedure for U.S.

May 2017  Page 19

Tax Procedure for CA

May 2017  Page 20

Custom Tax Processing / Account Key

1. Copy VS1 to ZS1 and uncheck “Not Deductible”.

2. Similar to ZS1, copy VS3 to ZS3 and uncheck “Not Deductible”.

May 2017  Page 21

Specify Structure for Tax Jurisdiction Code

Please complete the following:

Activate External Tax Calculation

The External System must be set as shown below.

May 2017  Page 22

Assign Tax Codes for Non-Taxable Transaction (OBCL)

It is optional to maintain non-taxable tax codes in OBCL.

Tax Codes Setup (FTXP)

For CA tax codes, please use recommendation below.

May 2017  Page 23

CA Input Tax Code

May 2017  Page 24

CA Output Tax Code

Tax Code Properties

Default Tax-Mapping for CA