Tax Locator is an effective tool designed to help assign proper tax areas for infotype 0207 (Resident Tax Area) and infotype 0208 (Work Tax Area), which will ensure proper payroll taxation.
Setting up Tax Locator is simple, as one needs to follow the steps in the IMG. However, once all the steps are set-up initially, problems may arise from not having Tax Locator updated with the latest data set. To mitigate any potential issues, SAP and BSI deliver programs to test and audit Tax Locator configuration.
The first program is RPUTLTU0. This utility is used to test the SAP and BSI Tax Locator connection. Read more.