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[sap-srm] setting a default tax code for shopping cart based on product catagory

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We currently use ECC6.0 with SRM 5.0 EP4. We already have a default tax code setup in SRM and want to have one specific to one product category (Y). I tried to use the config in SRM to perform the above using SRM server->Cross-Application Basic Settings->Tax Calculation->Determine Tax Code for Country/Product Category. We set Country=CA, product category=Y (from F4 pulldown, and the default tax code also from another F4 pull down (source system defaults in properly.
However, it affected all products and not just the one product category I tried to create a shopping cart. It generates a hard error, not allowing me to save any carts, citing that 'Tax code could not be determined'.
Is there a setting I am missing? Does SRM allow me to set a default tax code conditional to the product commodity code as well as a general default setting?
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