However, depending on your business model, you may leave significant amounts on the table if you are not managing tax at the Purchase Order level. Scenario 1.2 is simpler from a data flow / structure perspective as the tables are validated directly against the invoice instead of flowing through the Requisition and Purchase Order. For example, input tax could be different for a material depending on if it is used in production processes or R&D processes). This is usually necessary if the actual usage you will make of a commodity influences the tax treatment. The requester can change the applicable tax directly on the purchase Requisition. The advantage of using scenario 1.1 is that it can be used to support “self-assessed” tax scenarios. No expected tax is communicated to the vendor. This can be done at the header or line item level.ġ.2 Use the tax tables directly for the match against the invoice (no tax needed on the PO) when the vendor submits an invoice with tax. The Purchase Order tax value is then used for the three-way match when the vendor submits an invoice with tax included. The expected tax can therefore be sent to the vendor on order.

These tax tables can be used in two ways:ġ.1 Determine which tax values should be auto-populated on the Purchase Requisition / Purchase Order. This entails using a set of tax tables maintained directly in the Ariba cloud solution (supported by an integrated CSV file import/export tool). There are typically 3 tax support models for the Ariba Buying and Invoicing modules: Option 1 – Manage Tax Directly in Ariba via the Integrated Tax Tables However, there is hope! I’d like to give you an overview of the different options for supporting Input Tax and/or Value Added Tax (VAT) scenarios in the Ariba solutions: How to Manage Tax in SAP Ariba Buying & Invoicing solutions?Īs our friend Christopher Bullock (and potential closet SAP Ariba expert) said so bluntly in 1716: ’Tis impossible to be sure of anything but Death and TaxesĪlthough I’m sure we can fend off the former together for a while still, I am sad to say that if you are implementing Ariba Buying & Invoicing, I won’t be able to help you avoid dealing with the latter.

Ariba invoicing