A Review of Tax Jurisdiction Management Methods in SAP S/4HANA Sales Models

Citation: Rana Sudeepta, "A Review of Tax Jurisdiction Management Methods in SAP S/4HANA Sales Models", Universal Library of Innovative Research and Studies, Volume 03, Issue 02.

Copyright: This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This article examines how tax jurisdiction management is organized in SAP S/4HANA sales models and why the topic has become more sensitive amid digital tax controls, cross-border order execution, and platform-based order-to-cash design. The study aims to identify the principal methods used to determine, validate, and govern tax jurisdiction data in sales processing, to compare configuration-centered and external-service-centered approaches, and to formulate an implementation logic suitable for modern S/4HANA transformation programs. The materials combine recent academic work on digital tax administration and ERP performance with current SAP documentation on jurisdiction codes, partner data, and external tax determination. Tax jurisdiction management in S/4HANA sits within a broader control architecture connecting master-data discipline, document logic, external tax engines such as Vertex, Avalara, and Thomson Reuters ONESOURCE, and governance procedures. The article proposes a structured decision model that OTC teams can use to design scalable and auditable sales taxation.

Keywords: SAP S/4HANA, Tax Jurisdiction, Sales Tax, Order-to-Cash, OTC Architecture, Tax Determination, External Tax Engine, Digital Tax Compliance, ERP Governance, Sales Models.

https://doi.org/10.70315/uloap.ulirs.2026.0302006