Tax Handling in Shopify in the Integration Hub

Tax Handling in Shopify in the Integration Hub

Tax Handling
The application handles the Tax integration either by posting the Shopify Tax amount to the default freight mapped in the General Settings of Shopify or by using the SAP Business On Tax Code Determination.

Tax Handling using Freight
In the Shopify General Settings, if the value selected in the Tax Posting in SAP Business One using setting is Freight then the synchronization of the tax amounts between Shopify and SAP Business One is handled by saving the tax amounts in a default freight mapped in the General Settings of Shopify.

Map a freight component in SAP Business One at line level to all tax components in respective line level in Shopify.

The tax amounts that are calculated in Shopify irrespective of tax components are integrated as a single component in SAP Business One i.e. the tax amounts per line item of Shopify are summarized and are mapped to a freight in line item of the sales order in SAP Business One.


Example

For example:   A Sales Order in Shopify with three items has three tax components per line.
Shopify Tax Components                            SAP Business One Component
TX State  Tax                          --------------------->         Freigh1 (LC)     
 Franklin County Tax       --------------------->         Freigh1 (LC)
Mount Vernon Municipal Tax      ---------->        Freigh1 (LC)                


All the above taxes of Shopify per line are summarized and updated in Freight 1 (LC) field in respective lines of SAP Business One Sales Order .

Shopify Tax Components in Line 1 of Sales Order         SAP Business One Component in Line 1
28.87                      ---- ----------- ------>
2.31                    ------ ----------- ---->                       38.11
6.93                    ------ ----------- ---->         


Shopify Tax Components in Line 2 of Sales Order         SAP Business One Component in Line 2
72.17                       ---- ----------- ------>
5.77                    ---- ----------- ------>                     92.56
17.32                  ---- ----------- ------>           


Default Tax code in SAP Business One

For all orders that are integrated from Shopify to SAP Business One, a default exempt tax code is set defined in the  General Settings .  The same tax code is used in the freight as well.

Tax Handling using Tax Code Determination 

In the Shopify General Settings, if the value selected in the Tax Posting in SAP Business One using setting is Tax Code Determination, then whenever a Shopify Order is integrated into SAP Business One, the Tax code is automatically set in SAP Business One based on the Tax code determination.

When any Order is downloaded from Shopify to SAP Business One, the hub application posts the Items, quantity, discount and freight. The line level tax code and on header level freight is automatically applied by SAP Business One using Tax Code Determination, 

The Shopify Order Tax amount will not be posted; the tax amount is automatically calculated in SAP Business One based on the applied tax Code.

Note
You must complete the Tax code determination in SAP Business One based on your requirement and ensure the tax code applied in a transaction by both application i.e. Shopify and SAP Business One should be same. otherwise, it may lead to document total inconsistency


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