Processing Custom Duty, Excise Duty, and Sales Tax/VAT in Purchase Order Change Orders

When you make changes to a purchase order that affect tax determination, online change order processing and the batch Change Purchase Order process (PO_POCHNG) provide for the redetermination and recalculation of taxes. For example, if you change the ship to location, quantity, or pricing on the schedule, once the changes are validated, tax determination and calculation are triggered, and the process updates excise duty and sales tax/VAT information on purchase order schedules and distributions.

The order items that change determine how the Change Purchase Order process handles changes related to excise duties and sales tax/VAT:

• If the ship to location or item ID changes, new defaults are retrieved and excise duties and sales tax/VAT are recalculated using the Tax Determination process (FS_EXSLIB).

• If the quantity or price changes, excise duties and sales tax/VAT are recalculated using the Tax Calculation process.

• If there are any other valid changes to the schedule, the Change Purchase Order process handles them using the original VAT information.

• If there are no qualifying changes to the schedule, no changes are processed. The PO_SHIP_WRK and PO_DIST_WRK tables are purged to reduce unnecessary processing, as there are no valid changes against them.

• If any errors are encountered, the process issues errors and writes those errors to the message log.

When the Change Purchase Order process for changes related to custom duties taxes is triggered:

• The Change Purchase Order process calls PO_CMFRTMSC and PO_CMBLDDST.

  The PO_CMFRTMSC section of the Change Purchase Order process runs the customs duty tax determination and calculation common process.

• Customs duty processing for online purchase order change orders function similarly; when a quantity, item, or ship to location is changed, a change order is triggered, along with customs duty processing.