The tax jurisdiction specifies the different taxing authorities to which you submit payments up to four levels representing State, country, City and other in your tax jurisdiction structure.
SAP IMG Path: – SPRO > SAP Reference IMG (F5) > Financial Accounting > Financial Accounting global settings > Tax on sales/Purchase > Basic setting > Specify structure for tax jurisdiction code
Transaction Code: – OBCO
Update the following fields
1. Enter the name of the tax jurisdiction code structure
2. Update the description of tax jurisdiction code structure
3. Enter the length of first level, second level, third level and fourth level of hierarchy within your tax jurisdiction code structure.
4. Set the Tax ln indicator to determine taxes on a line by line.
Click on save icon icon to save the configured data .