What is jurisdiction code in SAP FI-CA - Contract Accounts Receivable and Payable?

SAP Term: jurisdiction code

• Component: FI-CA

• Component Name: Contract Accounts Receivable and Payable

• Description: Key that describes the tax jurisdiction. The jurisdiction code specifies the tax authorities to which sales tax is to be paid, and in what amount. 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 jurisdiction code is used in addition to the tax code. The tax jurisdiction code always describes the location to which the goods were delivered or where a service was provided.

Smart SAP Assistant

• Key Concepts: 
  A jurisdiction code is a unique identifier used in the FI-CA Contract Accounts Receivable and Payable component of SAP. It is used to identify the country, state, or other jurisdiction in which a customer or vendor is located. This code is used to determine the applicable tax rate for a particular transaction. 
  
  How to use it: 
  The jurisdiction code is used when creating a customer or vendor master record in SAP. It is also used when creating a contract account for a customer or vendor. The code can be entered manually or selected from a list of available codes. 
  
  Tips & Tricks: 
  When entering the jurisdiction code, make sure to double-check that it is correct. Incorrect codes can lead to incorrect tax calculations and other errors. 
  
  Related Information: 
  The jurisdiction code is part of the FI-CA Contract Accounts Receivable and Payable component of SAP. For more information on this component, please refer to the SAP Help documentation.