How To Fix 5D438 - Flat-rate taxation (0699) and additional tax exemption (0699) not allowed

SAP Error Message - Details

• Message type: E = Error

• Message class: 5D - Error Messages for German Infotype Module Pools

• Message number: 438

• Message text: Flat-rate taxation (0699) and additional tax exemption (0699) not allowed

What causes this issue?

The contract model uses a module with flat rate taxation under sec. 40b
EStG or additional tax exemption under sec. 3 no. 63 cl. 3 EStG.
A different taxation type is used in another infotype record 0699 in the
validity period.
You cannot use both taxation options, however.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Check the infotype records and change the taxation type as necessary.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message 5D438 - Flat-rate taxation (0699) and additional tax exemption (0699) not allowed ?

  The SAP error message 5D438 indicates that there is an issue with flat-rate taxation and additional tax exemption settings in the system. This error typically arises in the context of tax calculations, particularly when dealing with specific tax codes or configurations that do not allow for both flat-rate taxation and additional tax exemptions to be applied simultaneously.
  Cause:
  
  Configuration Issues: The tax configuration in the SAP system may not allow for the combination of flat-rate taxation and additional tax exemptions. This can happen if the tax codes are not set up correctly in the system.
  Incompatible Tax Codes: The tax code being used may not support both flat-rate taxation and additional exemptions. This is often the case when the tax code is designed for a specific type of transaction that does not permit exemptions.
  Transaction Type: The type of transaction being processed may not be compatible with the selected tax treatment. For example, certain sales or purchase transactions may have restrictions on tax exemptions.
  
  Solution:
  
  
  Review Tax Code Configuration: Check the configuration of the tax codes involved in the transaction. Ensure that the tax codes are set up correctly to allow for the intended tax treatment. You can do this in the SAP Customizing Implementation Guide (IMG) under:
  
  Financial Accounting (FI) > Financial Accounting Global Settings > Tax on Sales/Purchases > Basic Settings > Define Tax Codes for Sales and Purchases.
  
  
  
  Adjust Transaction Settings: If the transaction type does not support both flat-rate taxation and additional exemptions, consider adjusting the transaction settings or using a different tax code that is compatible with the desired tax treatment.
  
  
  Consult Documentation: Review SAP documentation or consult with your SAP support team to understand the specific rules and configurations that apply to your organization’s tax setup.
  
  
  Testing: After making any changes, perform tests to ensure that the error does not reoccur and that the tax calculations are correct.
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide guidance on tax configuration.
  User Exits and BAdIs: If custom logic is involved in tax calculations, review any user exits or BAdIs that may affect how taxes are calculated and applied.
  Training and Documentation: Ensure that users involved in financial transactions are trained on the correct procedures for applying taxes and exemptions to avoid similar errors in the future.
  
  If the issue persists after following these steps, it may be beneficial to engage with SAP support for further assistance.