How To Fix 5U007 - Tax authority is not on local level

SAP Error Message - Details

• Message type: E = Error

• Message class: 5U - HR US: Messages

• Message number: 007

• Message text: Tax authority is not on local level

What causes this issue?

authority. Please verify your entry using PF4 or if it is correct, use
another employee tax screen (via the subtype) to add this tax code to
the employee's record.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message 5U007 - Tax authority is not on local level ?

  The SAP error message 5U007: Tax authority is not on local level typically occurs in the context of tax determination and configuration within the SAP system. This error indicates that the system is unable to find a tax authority that is defined at the local level for the specific transaction or location being processed.
  Cause:
  
  Missing Tax Authority Configuration: The tax authority for the specific jurisdiction (local level) is not defined in the system.
  Incorrect Tax Code: The tax code being used may not be associated with a valid local tax authority.
  Master Data Issues: The master data for the customer or vendor may not have the correct tax information or may not be linked to the appropriate tax authority.
  Geographical Mismatch: The location of the transaction may not match the jurisdiction where the tax authority is defined.
  
  Solution:
  
  
  Check Tax Authority Configuration:
  
  Go to the transaction code OBYZ (or the relevant configuration path) to check the tax authority settings.
  Ensure that the tax authority is defined for the local level in the relevant country and region.
  
  
  
  Verify Tax Codes:
  
  Use transaction code FTXP to check the tax codes being used in the transaction.
  Ensure that the tax codes are correctly configured and linked to the appropriate tax authorities.
  
  
  
  Review Master Data:
  
  Check the customer or vendor master data (transaction codes XD02 for customers and XK02 for vendors) to ensure that the tax classification and tax information are correctly maintained.
  Make sure that the address and location details are accurate and correspond to the local tax authority.
  
  
  
  Geographical Settings:
  
  Ensure that the geographical settings in the system (like country, region, and city) are correctly set up and correspond to the local tax authority.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or consult with your SAP support team for specific configuration steps related to your version of SAP.
  
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance.
  Tax Configuration Guides: Refer to SAP's tax configuration guides for your specific industry or region, as tax regulations can vary significantly.
  Testing: After making changes, perform testing in a development or quality assurance environment to ensure that the issue is resolved before moving to production.
  
  If the issue persists after following these steps, it may be beneficial to engage with SAP support or a consultant who specializes in SAP tax configuration.