Configure the Jurisdiction Code

The tax jurisdiction codes represent the different taxing authorities to which you submit payment for taxes EG: the state, county, city etc.

In SAP you can have as many as 4 levels. Configuration is done in 2 steps :

First step :
The tax jurisdiction structure (structure of the tax code) is set up with following menu path :

IMG >Financial accounting> Fi Accounting basic settings> tax on sales/purchases > basic settings > specify structure for tax jurisdiction code.

Alternatively you can use t-code OBCO

This step allows you the enter the character length of your various level of hierarchy within your tax jurisdiction code structure (State 2 char, county 3, city 4, etc...).

Second step:

You configure the tax jurisdiction code using the structure defined earlier, menu path :

IMG >Financial accounting> Fi Accounting basic settings> tax on sales/purchases > basic settings > define tax jurisdiction codes.

Alternatively t-code OBCP

Define your tax jurisdiction codes, EG GA0000000 for Georgia, GA001000 for Georgia, douglas county, GA001001 for georgia, douglas county, city of lithia springs.