Minor issues can multiply the effort
Tax codes are important. They are part of the central master data in the SAP system and enable input taxes to be posted directly to the appropriate tax accounts. Subsequent processes depend on the correct assignment, in particular the automatic processing of payments.
So where is the problem? The administrative jungle of tax codes makes automation difficult. It is true that the same tax code can be automatically assigned for all domestic invoices with the standard rate of 19% - easy. These tax codes can be easily set based on a rule, as the supplier country, invoice recipient country and tax rate can usually be captured automatically.
As soon as simple basic rules like this are no longer sufficient, traditionally programmed solutions reach their limit. In many countries it is almost impossible to avoid manually entering the tax code for each invoice. But once manual entries are necessary, all subsequent processes are now delayed. While accountants may be able to make the tax code decision quickly because of their knowledge and experience, every manual action can cause a significant delay: