Tax Handling in TM

Ananth Bhat
T&L Development July 22nd 2014 Confidential
Agenda

1. Overview of the Tax determination with SAP TM and SAP ERP

2. Forwarding Settlement (a.k.a. FWSD integration)
3. Freight Settlement (a.k.a. FSD integration)
4. Demo/Example Walk Though
5. Questions/Discussion

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Overview

1. Tax Code determination and calculation will be in ERP

2. TM would enable Tax code determination in ERP by

– Adding Additional TM Fields and Tax influencers (Indicators – NOT TAX CODE) Configurable in TM at both
BP* and Charge Type

3. These Tax influencers in addition to the Tax determinants would be transferred to ERP with
the Integration (FWSD and FSD).

4. On the SAP ERP, via condition types for Tax, the Tax code and the calculation will be done.
• Tax conditions on the pricing procedure of SD or MM.
• Tax conditions via the Access Sequence will have Tax code determination enabled
• Access Sequence with TM passed attributes will enable Tax code determination on ERP

5. Tax set up and determination done on the SAP ERP and only influencers on the SAP TM

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Overview – System functionality view

FWSD/ SD Billing Pricing Tax Determinants

ISD Doc Procedure 1. Source Location
2. Destination location
3. Partner’s Location
Determinants for Tax (Payer/Billing entities
TM ERP location/
FSD PO/SES Vendor’s/carriers
Pricing location)
Procedure 4. Tax Indicators at BP
and Charge type level
5. Type of Service /
Charge Type
6. Traffic Direction
7. ……

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Typical Scenario

Country 1 Country 2
DE US

Pick-up Main Carriage Delivery

Station/ Station/
CFS/Port CFS/Port

Billing/Invoicing
1. Tax determined on typical factors discussed earlier
2. Tax collected if any paid to the country in which the
Paying Company entity resides *

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Additional Changes in TM – ERP Integration for Settlement

Tax Determination can be done at 2 levels At Charge Item level or

Charge Type level.
Forwarding Settlement (Selling Side)
 SD billing document Items will be created per Charge type if the Tax determination is per
Charge type.

 Mapping of the TM Tax indicators to the ERP Tax classification to use the SD billing process
for additional Tax determination flexibility.

Freight Settlement (Buying Side)

 Service Level Tax determination via Service Entry Sheet.

 Mapping of TM tax indicator to ERP Tax indicator for Services

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Demo Scenarios

Customer Settlement – FWSD

1. Settlement with Domestic Customer

1. Domestic transportation
2. International outbound
3. Intra EU Transportation

2. Settlement with International Customer

1. Intra EU Transportation

Freight Settlement - FSD

3. German Company is buying Freight services from a US Carrier/LSP for movement of the
cargo from Germany to USA (Example : Inco terms such as CIF, DDU, DAT etc)

4. USA Company is buying Freight Services from a US Carrier/LSP for movement of cargo
from
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All rights reserved. to USA (Example : Inco terms such as FOB, EXW). Confidential 7
Implementation Details
Technical insights – FWSD - ERP Mapping for Tax Determination

Comm Structure TM Field Comment

KOMK-LAND1 Country of the Customer Country of the customer being
billed
KOMK-ALAND Country of the Sales org Country of the Sales org
KOMK-SLAND1_A Source Country FWO – Source country or
Stage Source Country or Item
Source country
KOMK-SLAND1_Z Destination Country FWO – Destination country or
Stage Destination Country or
Item Destination country
KOMK-TAXK1 to TAXK9 BP Tax Group Mapping of the Tax group to
classification in SAP ERP
KOMP-TAXM1 to TAXM9 Charge type Tax Group Mapping of Tax Group to
Classification in SAP ERP

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Technical insights – FSD - ERP Mapping for Tax Determination

Comm Structure TM Field Comment

KOMK-LAND1 Country of Plant on ERP in MM-
PO/Country of CC
KOMK-ALAND Country of the Carrier
KOMK-SLAND1_A Source Country FO – Source country or Stage
Source Country or Item Source
country
KOMK-SLAND1_Z Destination FO – Destination country or Stage
Country Destination Country or Item
Destination country
KOMP-TAXIM Tax Group Mapping of Tax Group to
Classification in ERP

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IMG Activities On TM
BP Tax types and Tax Groups

1. Define Tax Types and Tax Groups here

per country.

Tax Types == Condition types in ERP.

Tax Groups == Classification indicator in

ERP

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TM BP setting (optional)

You can optionally set up the assignment of

the Tax type and Tax Group per BP on a Per
country Basis. If set up, the same will be
transferred from TM to ERP with the FWSD.
Primarily the Payer Settings will be transferred
from TM to ERP during the Billing integration.

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IMG Activities On TM
BP Tax types and Tax Groups

1. Define Tax for countries

In this activity you activate for which countries you would want
to do the Tax determination at each charge type level. If you do
not set this, the tax can only be set up at the Group of the
charges (Charge item level).

2. Define Tax for Charges.

In this activity you assign Tax Type and Groups per charge type per
country for which you have activated the Tax determinate at charge
type level in step 1.

Common for FSD and FWSD

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IMG Activities on SAP ERP

1. Map SAP TM Tax Settings

You define the mapping of the Tax type and Tax
groups (both for charge types and BP) to the SAP
ERP Tax Category (a.k.a. Tax condition type) and
Tax classification. (common for FSD and FWSD)

2. Activate BADI for Mapping Org country for Tax

Determination – Create
You activate the BADI implementation which will
be called during the SD Billing document Creation.
3. Activate BADI for Mapping Org Country for
Tax Determination – Simulation.
You activate the BADI implementation which will
be called during the SD Billing document
Simulation
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TM Services Enhanced

TM Services interfaces enhanced for additional fields for Tax determination

FWSD services

CustomerFreightInvoiceRequestSUITESimulate_Out

CustomerFreightInvoiceRequestSUITERequest_Out_V1

FSD Services

TransportationOrderSUITEInvoicingPreparationRequest_Out

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Implementation Details – FWSD Integration.

1. Core SD BADI - BADI_SD_BILLING_ITEM (BADI Implementation TM_SD_ITEM_TAX_DET)

This implementation is called during the Creation of the SD billing document creation.

2. TM BADI on ERP - TCM_SE_CFIRSUITE_RQ (BADI Implementation IMP_TM_TAX_LOC_MAP).

This implementation needs to be activated by customer, and this will be called during the
Inbound processing during SD billing document creation).

3. TM BADI on ERP – TCM_SE_CFIRSUITE_SIMRQ (BADI Implementation

IMP_TM_TAX_MAP_LOCATION)

This implementation needs to be activated by customer, and this will be called during the
Inbound processing during SD billing document simulation).
BADI implementation IMP_TM_TAX_LOC_MAP and IMP_TM_TAX_MAP_LOCATION needs
activation by customer on business need
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Implementation Details – FSD Integration.

1. MM BADI ME_PO_PRICING (BADI Implementation TM_PO_ITEM_TAX_DET)

This implementation is called during the Creation of the PO/SES.

2. Implicit Enhancements delivered for TM integration in the Core MM pricing procedure

determination (Function modules MS_FILL_KOMK_SRV and MS_FILL_KOMP_SRV) to do the
Tax determination in SES.

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Enhancement Options – SD Side

Incase you need additional fields from TM to

do the Tax determination,

You need to implement the same via SD billing

document user exit.

USEREXIT_PRICING_PREPARE_TKOMK   (pro
gram RV60AFZZ)

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Enhancement Options – MM Side

Incase you need additional fields from TM to do the Tax determination,

You need to implement the same via MM pricing BADI ME_PO_PRICING_CUST

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Access Sequence on SAP ERP – SD Integration
Customizing for SD

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Access Sequence on SAP ERP – MM Integration

For Tax at Service Item Level

For Tax at PO Item Level

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Basic Tax Configuration on ERP

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Useful

SD MM

Transaction Code Transaction code

VK11 to VK13 to create / maintain Condition MEK1 to MEK3 to create / Maintain Condition
records records

Maintenance of Tax Code in FI Transaction Code - FTXP

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Thank you

Contact information:

Ananth Bhat
Title : Product Owner – TM Settlement
ananth.bhat@sap.com
Back up
System Landscape and Examples

ERP system Q7Q/511.

Scenarios FWO
Scenario 1 1100015762
Movement Domestic DE - DE
FWH in DE
Customer in DE

Scenario 2 1100015764
Movement Intra EU DE to IT
FWH in DE
Customer in DE

Scenario 3 1100015763
Movement International Outbound DE to CN
FWH in DE
Customer in DE

Scenario 4 1100015765
Movement Intra EU DE to IT
FWH in DE
Customer in IT

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