INTEGRATION GUIDE | PUBLIC

2019-03-15

Use the Tax Service with Other SAP Products

© 2019 SAP SE or an SAP affiliate company. All rights reserved.

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Content

1 Use the Tax Service with Other SAP Products. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

1.1 Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.2 SAP S/4HANA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Integrating Tax Service with SAP S/4HANA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Data Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.3 SAP S/4HANA Cloud. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Integrating Tax Service with SAP S/4HANA Cloud. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
Configuration Options for Key Users. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Canada. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Data Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
1.4 SAP Subscription Billing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Use the Tax Service with Other SAP Products

2 PUBLIC Content
1 Use the Tax Service with Other SAP
Products

You can use some or all of the features of the tax service in other SAP products.

For information about the features that are supported and how you can integrate the tax service, see the
following:

● SAP S/4HANA [page 3]

● SAP S/4HANA Cloud [page 8]
● SAP Subscription Billing [page 13]

1.1 Glossary

A glossary of definitions for concepts used in the Use the Tax Service with Other SAP Products documentation.

jurisdiction code A code that specifies the tax authorities to which sales tax is
to be paid, and in what amount.

 Example
In some countries, such as Brazil, India, Canada, and the
USA, sales tax is paid at local level as well as national
level. To reflect the multilevel local tax levels in addition
to the national taxes in the tax calculation, the jurisdic­
tion code is used in addition to the tax code. The tax ju­
risdiction code always describes the location to which
the goods were delivered or where a service was pro­
vided.

tax code A two-digit code that represents the specifications used for
calculating and displaying taxes.

1.2 SAP S/4HANA

You can use the tax service integrated with SAP S/4HANA to calculate applicable country-specific indirect
taxes for a business transaction, according to the guidelines of local tax authorities.

Use the Tax Service with Other SAP Products

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Related Information

SAP S/4HANA

1.2.1 Integrating Tax Service with SAP S/4HANA

This section describes the steps that you must complete to be able to use the tax service with your SAP S/
4HANA system.

Context

Procedure

1. Onboard to the tax service. Follow the steps described in Onboarding to SAP Localization Hub, Tax Service.
2. Configure the integration by following the steps described in the set-up instructions .

You can also access the set-up instructions by going to the Best Practices Explorer and searching for
your scope item.

The integration of tax service with SAP S/4HANA is available for the following scope items:

Country or Region Scope Item

Brazil 1J5

Canada

3. Subscribe to a partner service in the SAP App Center .

4. Configure the Partner Service Framework as described in Use the Partner Service Framework
5. Choose your partner in the Manage Tax Configuration FLP
6. Configure your partner service.

Use the Tax Service with Other SAP Products

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1.2.2 Data Management

1.2.2.1 Archiving for Log of Tax Service Calculation

Operation

You can use the archiving object TXS_TRACE to archive logs of the tax service calculation operation.

TXS_TRACE archives data from the Trace of Tax Service Calculation Operation table (TXS_TRACE).

Prerequisites

The following prerequisites must be fulfilled before a log can be archived:

● The residence time is fulfilled.

ILM-Related Information for the Archiving Object

You can use this archiving object with the TXS_TRACE ILM object as part of the SAP Information Lifecycle
Management.

The following fields are defined for TXS_TRACE in the ILM policy and visible in the processing of ILM policies
(transaction IRMPOL):

Available time references:

● Created On

Available policy categories:

● Residence Rules
● Retention Rules

Performing Application-Specific Configuration

Before you can use the TXS_TRACE archiving object, you must first check the settings in Customizing under
Integration with Other SAP Components SAP Localization Hub, Tax Service Data Aging Residence Time
for Tax Service Business Objects .

Defining Write Variants

A write variant contains the parameters for the logs that you want to archive using the Write Archive of Log of
Tax Service Calculation Operation (TXS_WRITE_TRACE) program.

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1. GUID
Defines the unique ID of the tax calculation operation.
2. Company Code
The company code is an organizational unit within financial accounting.
3. Application
Subdivides the usage of a condition (for example, pricing) for use in different application areas (for
example, sales & distribution or purchasing).
4. Document Category
Specifies a classification for the different types of documents that you can process in different application
areas. For example, Sales & Distributions and Purchasing.
5. Document Number
Specifies the number of a document that the system processes in different application areas.
6. Fiscal Year
7. Item Number
Identifies an item within a document in different application areas.
8. Time Stamp
Specifies the date and time that the system generates a document during the logistics process.

Defining Read Program Variants

A read variant contains the parameters for the logs that you want to read using the Read Archive of Log of Tax
Service Calculation Operation (TXS_READ_TRACE) program.

1. GUID
Defines the unique ID of the tax calculation operation.
2. Company Code
The company code is an organizational unit within financial accounting.
3. Application
Subdivides the usage of a condition (for example, pricing) for use in different application areas (for
example, sales & distribution or purchasing).
4. Document Category
Specifies a classification for the different types of documents that you can process in different application
areas. For example, Sales & Distributions and Purchasing.
5. Document Number
Specifies the number of a document that the system processes in different application areas.
6. Fiscal Year
7. Item Number
Identifies an item within a document in different application areas.
8. Time Stamp
Specifies the date and time that the system generates a document during the logistics process.

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Displaying Logs Archived with TXS_TRACE

You can access the information related to the archived logs of tax service calculation operation using the Read
Archive of Log of Tax Service Calculation Operation (TXS_READ_TRACE) program. To archive and read the logs,
use the TXS_TRACE info structure and TXS_TRACE field catalog.

1.2.2.2 Data Aging for Log of Tax Service

(TXS_DAAG_TRACE)

Data aging enables you to manage outdated information and get more working memory by moving sets of data
within a database.

The application moves data according to the following concepts of data temperature:

● Hot data: relevant to the operations of application objects, needed in day-to-day business transactions.
This data resides in the current area.
● Cold data: has lost its relevance due to its age or to not being accessed frequently. The application moves
this data to the historical area.

 Note

Moving the data to the historical area influences the visibility of the data during data access or search.

You can use the Data Aging for Log of Tax Service (TXS_DAAG_TRACE) object to move tax service business
objects. The standard residence time is 1096 days.

 Note

In SAP S/4HANA, you can alter the aging run by customizing the Residence Time for Tax Service Business
Objects customizing activity. The Customizing activitiy is available in the SAP Customizing
Implementation Guide Integration with Other SAP Components SAP Localization Hub, Tax Service
Residence Time for Tax Service Business Objects .

Technical Details

See below some technical details of the Data Aging for Log of Tax Service (TXS_DAAG_TRACE) object:

Name of the data aging object TXS_DAAG_TRACE

Default value of the package size 1000

Tables included in the data aging object TXS_TRACE

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1.3 SAP S/4HANA Cloud

You can use the tax service integrated with SAP S/4HANA Cloud to calculate taxes for sales and purchase
operations in accordance with the guidelines from the tax authorities.

You can extend the integration framework to calculate the relevant taxes for different countries with additional
coding.

Related Information

SAP S/4HANA Cloud

1.3.1 Integrating Tax Service with SAP S/4HANA Cloud

This section describes the steps that you must complete to be able to use the tax service with your SAP S/
4HANA Cloud system.

Context

Procedure

1. Onboard to the tax service. Follow the steps described in Onboarding to SAP Localization Hub, Tax Service.
2. Configure the integration by following the steps described in the set-up instructions .

You can also access the set-up instructions by going to the Best Practices Explorer and searching for
your scope item.

The integration of tax service with SAP S/4HANA Cloud is available for the following scope items:

Country or Region Scope Item

Brazil 1J5

Canada

3. To enable tax calculation for Brazil, complete the additional settings listed in SAP Localization Hub, Tax
Service.
4. Subscribe to a partner service in the SAP App Center .
5. Configure the Partner Service Framework as described in Use the Partner Service Framework

Use the Tax Service with Other SAP Products

8 PUBLIC Use the Tax Service with Other SAP Products
6. Choose your partner in the Manage Tax Configuration FLP
7. Configure your partner service.

1.3.2 Configuration Options for Key Users

Your system is preconfigured with settings that allow you to use the tax service. You can adjust the tax service's
settings in the Configure Your Solution app.

Find the following configuration steps under Manage Your Solution Configure Your Solution .

Application Sub Application Name Configuration Steps

Finance Integration SAP Localization Hub, Tax Activate the Tax Service for
Service Pricing Procedures

1.3.3 Canada

1.3.3.1 Using the Automatic Selection of Tax Code and

Jurisdiction Code

When creating a purchase order, you can get the tax code and jurisdiction code automatically from the tax
service. The tax service sends the information to your preferred tax calculation functionality (internal or
external), and receives the corresponding tax and jurisdiction codes.

Context

Assume you’re creating a purchase order for Canada and you want to determine the suitable input taxes for
that order. To determine these taxes, a tax code and jurisdiction code are required. The tax code is a two-digit
code that represents the specifications used for calculating and displaying tax. Examples of the specifications
defined under the tax code are: tax rate and type of tax (input tax or output tax). The jurisdiction code specifies
the tax authorities to which sales tax is to be paid, and in what amount.

The tax service can automatically select the corresponding tax and jurisdiction codes based on the information
maintained in the purchase order (for example, the shipping location).

You can set the automatic selection of tax and jurisdiction code as default. By setting it as default, the system
automatically chooses the tax and jurisdiction code when you create or edit a purchase order. If needed, you
can change the codes manually. To set the automatic selection of tax and jurisdiction code as default in your
system, use one of the techniques provided by SAP for defaulting tax code in purchases orders (for example,
info records).

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Follow the steps below to manually use the automatic selection of tax and the jurisdiction codes:

Procedure

1. Access the Create Purchase Order transaction (ME21N).

2. Select the item for which you want to create an order.
3. In the tab Invoice, go to the field Tax Code and enter TS.
4. Choose enter.

The system calculates the taxes and returns the corresponding tax code and jurisdiction code.

 Note

The standard ship-to information is the business place (plant) address. You can change the ship-to
information of each item in the delivery address tab.

 Note

If you have an error when determining taxes after using TS, the system empties the Tax Code field.
Correct the error, enter TS in the Tax Code field, and choose Enter.

Related Information

Manage Purchasing Info Records

1.3.4 Data Management

1.3.4.1 Archiving for Log of Tax Service Calculation

Operation

You can use the archiving object TXS_TRACE to archive logs of the tax service calculation operation.

TXS_TRACE archives data from the Trace of Tax Service Calculation Operation table (TXS_TRACE).

Prerequisites

The following prerequisites must be fulfilled before a log can be archived:

● The residence time is fulfilled.

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ILM-Related Information for the Archiving Object

You can use this archiving object with the TXS_TRACE ILM object as part of the SAP Information Lifecycle
Management.

The following fields are defined for TXS_TRACE in the ILM policy and visible in the processing of ILM policies
(transaction IRMPOL):

Available time references:

● Created On

Available policy categories:

● Residence Rules
● Retention Rules

Performing Application-Specific Configuration

Before you can use the TXS_TRACE archiving object, you must first check the settings in Customizing under
Integration with Other SAP Components SAP Localization Hub, Tax Service Data Aging Residence Time
for Tax Service Business Objects .

Defining Write Variants

A write variant contains the parameters for the logs that you want to archive using the Write Archive of Log of
Tax Service Calculation Operation (TXS_WRITE_TRACE) program.

1. GUID
Defines the unique ID of the tax calculation operation.
2. Company Code
The company code is an organizational unit within financial accounting.
3. Application
Subdivides the usage of a condition (for example, pricing) for use in different application areas (for
example, sales & distribution or purchasing).
4. Document Category
Specifies a classification for the different types of documents that you can process in different application
areas. For example, Sales & Distributions and Purchasing.
5. Document Number
Specifies the number of a document that the system processes in different application areas.
6. Fiscal Year
7. Item Number
Identifies an item within a document in different application areas.
8. Time Stamp
Specifies the date and time that the system generates a document during the logistics process.

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Defining Read Program Variants

A read variant contains the parameters for the logs that you want to read using the Read Archive of Log of Tax
Service Calculation Operation (TXS_READ_TRACE) program.

1. GUID
Defines the unique ID of the tax calculation operation.
2. Company Code
The company code is an organizational unit within financial accounting.
3. Application
Subdivides the usage of a condition (for example, pricing) for use in different application areas (for
example, sales & distribution or purchasing).
4. Document Category
Specifies a classification for the different types of documents that you can process in different application
areas. For example, Sales & Distributions and Purchasing.
5. Document Number
Specifies the number of a document that the system processes in different application areas.
6. Fiscal Year
7. Item Number
Identifies an item within a document in different application areas.
8. Time Stamp
Specifies the date and time that the system generates a document during the logistics process.

Displaying Logs Archived with TXS_TRACE

You can access the information related to the archived logs of tax service calculation operation using the Read
Archive of Log of Tax Service Calculation Operation (TXS_READ_TRACE) program. To archive and read the logs,
use the TXS_TRACE info structure and TXS_TRACE field catalog.

1.3.4.2 Data Aging for Log of Tax Service

(TXS_DAAG_TRACE)

Data aging enables you to manage outdated information and get more working memory by moving sets of data
within a database.

The application moves data according to the following concepts of data temperature:

● Hot data: relevant to the operations of application objects, needed in day-to-day business transactions.
This data resides in the current area.
● Cold data: has lost its relevance due to its age or to not being accessed frequently. The application moves
this data to the historical area.

 Note

Moving the data to the historical area influences the visibility of the data during data access or search.

Use the Tax Service with Other SAP Products

12 PUBLIC Use the Tax Service with Other SAP Products
You can use the Data Aging for Log of Tax Service (TXS_DAAG_TRACE) object to move tax service business
objects. The standard residence time is 1096 days.

Technical Details

See below some technical details of the Data Aging for Log of Tax Service (TXS_DAAG_TRACE) object:

Name of the data aging object TXS_DAAG_TRACE

Default value of the package size 1000

Tables included in the data aging object TXS_TRACE

1.4 SAP Subscription Billing

You can use the tax service integrated with SAP Subscription Billing to calculate applicable country-specific
indirect taxes for orders and bills.

For information about the tax features that you can use in SAP Subscription Billing, see Tax Calculation.

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Use the Tax Service with Other SAP Products
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