SAP Note 15642 - US taxes

Symptom:

Problems handling taxes in USA.
(Keywords: TXJCD, TTXD, TTXJ )

Cause and prerequisites

Handling is somewhat more complicated because a jurisdiction code is also involved.

Solution
We recommend the following procedure:
Until Rel. 2.1: Enter tax indicator "**" as the default value in table T169V.
From Rel. 2.2: Enter tax indicator " " as the default value in table
T169V.

This default value then appears on the vendor screen, and should not be overwritten.
Taxes are then entered for each position. If the tax indicator and jurisdiction code exist, they are copied to the invoice items; they can be changed there. Otherwise, the indicator, jurisdiction code, and (possibly) amount should be entered for each item.