The tax jurisdiction specifies the different taxing authorities to which you submit payments up to four levels representing State, country, City, and others in your tax jurisdiction structure.

  • SAP IMG Path: – SPRO > SAP Reference IMG (F5) > Financial Accounting > Financial Accounting global settings > Tax on sales/Purchase > Basic setting > Specify structure for tax jurisdiction code
  • Transaction Code: – OBCO

Specify structure for tax jurisdiction code Path

Update the following fields

  1. Enter the name of the tax jurisdiction code structure
  2. Update the description of the tax jurisdiction code structure
  3. Enter the length of the first level, second level, third level, and fourth level of hierarchy within your tax jurisdiction code structure.
  4. Set the Tax ln indicator to determine taxes line by line. 

Specify structure for tax jurisdiction code

Click on the save icon to save the configured data.