How To Fix >5406 - Posting with cash discount and tax country &1 not possible

SAP Error Message - Details

• Message type: E = Error

• Message class: >5 -

• Message number: 406

• Message text: Posting with cash discount and tax country &1 not possible

Self-Explanatory Message

Since SAP believes that this specific error message is 'self-explanatory,' no more information has been given.The majority of messages in the SAP system have a message text, however this is frequently insufficient to comprehend or resolve the problem.

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Smart SAP Assistant

• What is the cause and solution for SAP error message >5406 - Posting with cash discount and tax country &1 not possible ?

  The SAP error message 5406 indicates that there is an issue with posting a transaction that involves a cash discount and a specific tax country. This error typically arises when the system detects a conflict between the cash discount and tax settings for the specified country.
  Cause:
  
  Tax Configuration: The tax configuration for the specified country may not support cash discounts. This can happen if the tax settings do not allow for the calculation of tax on the net amount after the cash discount is applied.
  Document Type Settings: The document type being used may not be configured to allow cash discounts in conjunction with the tax settings for that country.
  Account Determination: The account determination settings may not be correctly set up to handle cash discounts and taxes together.
  Transaction Type: The type of transaction being processed may not be compatible with cash discounts and tax calculations.
  
  Solution:
  
  
  Review Tax Configuration: Check the tax configuration for the specified country in the SAP system. Ensure that the settings allow for cash discounts and that the tax is calculated correctly on the net amount.
  
  Transaction Code: OBYZ (for tax codes)
  Transaction Code: OB40 (for tax determination)
  
  
  
  Check Document Type Settings: Verify the settings for the document type being used. Ensure that it is configured to allow cash discounts.
  
  Transaction Code: OBA7 (for document types)
  
  
  
  Account Determination: Review the account determination settings to ensure that they are set up to handle cash discounts and taxes appropriately.
  
  Transaction Code: OBY6 (for account determination)
  
  
  
  Consult with Finance Team: If you are unsure about the settings, consult with your finance or accounting team to ensure that the configurations align with your organization's accounting policies.
  
  
  Test with Different Scenarios: If possible, try posting a transaction without the cash discount to see if the error persists. This can help isolate whether the issue is specifically related to the cash discount or if there are broader configuration issues.
  
  
  Related Information:
  
  SAP Notes: Check SAP Notes for any known issues or patches related to this error message. You can search for the error message number in the SAP Support Portal.
  Documentation: Review SAP documentation related to tax configuration and cash discounts for your specific version of SAP.
  User Forums: Consider checking SAP community forums or user groups for similar issues and solutions shared by other users.
  
  By following these steps, you should be able to identify the root cause of the error and implement the necessary changes to resolve it.