How To Fix >5407 - Tax country &1 is not intended for company code &2

SAP Error Message - Details

• Message type: E = Error

• Message class: >5 -

• Message number: 407

• Message text: Tax country &1 is not intended for company code &2

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message >5407 - Tax country &1 is not intended for company code &2 ?

  The SAP error message 5407 indicates that there is a mismatch between the tax country and the company code in your configuration. Specifically, it means that the tax country specified in the transaction is not set up for the company code you are using.
  Cause:
  
  Configuration Issue: The tax country is not assigned to the company code in the tax configuration settings.
  Incorrect Data Entry: The tax country code entered in the transaction may be incorrect or not applicable to the specified company code.
  Missing Tax Jurisdiction: The tax jurisdiction for the specified tax country may not be defined for the company code.
  
  Solution:
  To resolve this error, you can follow these steps:
  
  
  Check Tax Configuration:
  
  Go to the SAP Customizing Implementation Guide (SPRO).
  Navigate to Financial Accounting (New) > Financial Accounting Global Settings (New) > Tax on Sales/Purchases > Basic Settings > Define Tax Countries.
  Ensure that the tax country in question is assigned to the relevant company code.
  
  
  
  Assign Tax Country to Company Code:
  
  If the tax country is not assigned, you will need to add it. This can typically be done in the same configuration area where you defined tax countries.
  Make sure to check the settings for both sales tax and purchase tax if applicable.
  
  
  
  Review Master Data:
  
  Check the master data for the customer or vendor involved in the transaction to ensure that the correct tax country is specified.
  Ensure that the company code is correctly set up in the master data.
  
  
  
  Check Transaction Data:
  
  Review the transaction data to ensure that the correct tax country is being used. If the tax country is being derived from the address, ensure that the address is correct.
  
  
  
  Consult Documentation:
  
  If you are unsure about the configuration, consult the SAP documentation or reach out to your SAP support team for assistance.
  
  
  
  Related Information:
  
  Transaction Codes: You may use transaction codes like OBY6 (to check company code settings) and OBD2 (to check tax codes) to navigate through the relevant settings.
  SAP Notes: Check for any relevant SAP Notes that may address specific issues related to tax configuration and error messages.
  Testing: After making changes, perform a test transaction to ensure that the error is resolved.
  
  By following these steps, you should be able to resolve the error message 5407 and ensure that the tax country is correctly configured for the specified company code.