In a standard Purchase Order based process, our system uses the tax jurisdiction code maintained in the account assignment object (cost center, WBS, maintenance order, etc) during the Goods Receipt (MIGO) or Service Entry (ML81N) process. This is true for purchase orders for material (item category =blank) as well as purchase orders for services (item category=D).
During the Invoice Receipt (MIRO) transaction for the above purchase orders we see that the the system uses the tax jurisdiction code maintained in the account assignment object (cost center, WBS, maintenance order, etc). This is only if the purchase order was for services (item category = D)
If the purchase order was for materials (item category=blank) then during the MIRO process we see that the system uses the tax jurisdiction code from the PO invoice tab.
Is this standard behavior?
Note:
1. I have read the Note: 501054 FAQs in Purchasing - which is very helpful from a PO standpoint but not from a Invoice standpoint.
2. We do not have a external tax calculation system.
3. In our plant codes we do not have a tax jurisdiction code maintained (OX10).
4. We ran into this issue as we have users that update the tax jurisdiction code value on the PO invoice tab, only to realize that the system (for services) does not take it into consideration.