How To Fix 63041 - Tax code must have tax type "A" for outgoing tax

SAP Error Message - Details

• Message type: E = Error

• Message class: 63 - Messages for Real Estate Management

• Message number: 041

• Message text: Tax code must have tax type "A" for outgoing tax

What causes this issue?

Value added tax codes are grouped according to different tax types.
Here only "output tax type" codes are permitted.

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?

Enter an output tax type code.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message 63041 - Tax code must have tax type "A" for outgoing tax ?

  The SAP error message 63041, which states "Tax code must have tax type 'A' for outgoing tax," typically occurs in the context of tax configuration in SAP, particularly when dealing with outgoing invoices or transactions that involve sales tax.
  Cause:
  This error is triggered when the system expects a tax code that is classified as "A" (which usually stands for "output tax") for outgoing transactions, but the tax code being used does not meet this requirement. This can happen due to:
  
  Incorrect Tax Code Configuration: The tax code being used may not be set up correctly in the system, or it may be assigned a different tax type.
  Transaction Type Mismatch: The transaction being processed may not align with the expected tax type for the given tax code.
  Master Data Issues: The customer or vendor master data may have incorrect tax information that does not correspond with the tax code being applied.
  
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Check Tax Code Configuration:
  
  Go to the transaction code OBYZ (or use the path: SPRO > Financial Accounting > Tax on Sales/Purchases > Basic Settings > Check Tax Codes for Sales and Purchases).
  Verify that the tax code in question is configured with the correct tax type "A" for outgoing tax.
  
  
  
  Review Transaction Details:
  
  Ensure that the transaction you are trying to process is indeed an outgoing transaction and that the correct tax code is being applied.
  Check the document type and ensure it aligns with the expected tax treatment.
  
  
  
  Examine Master Data:
  
  Review the customer or vendor master data to ensure that the tax classification is set correctly.
  Use transaction codes like XD03 (for customers) or MK03 (for vendors) to check the tax information.
  
  
  
  Consult with Tax Experts:
  
  If you are unsure about the correct tax code or configuration, consult with your finance or tax department to ensure compliance with local tax regulations.
  
  
  
  Testing:
  
  After making any changes, perform a test transaction to ensure that the error no longer occurs.
  
  
  
  Related Information:
  
  Tax Types: In SAP, tax types are used to classify different types of taxes (e.g., output tax, input tax). Understanding these classifications is crucial for proper tax handling.
  Tax Code Usage: Tax codes are used in various transactions, including sales invoices, purchase invoices, and other financial documents. Each tax code must be correctly configured to avoid errors.
  SAP Documentation: Refer to SAP Help Portal or your organization's SAP documentation for detailed guidance on tax configuration and troubleshooting.
  
  By following these steps, you should be able to identify the cause of the error and implement the necessary changes to resolve it.