How To Fix 88681 - VAT determination failed; error code &2

SAP Error Message - Details

• Message type: E = Error

• Message class: 88 - REA Processing

• Message number: 681

• Message text: VAT determination failed; error code &2

System Response

VAT can not be determined for tax indicator &V1&.
The error &V2& occurred.
This could be as a result of the following:
Error 1: The company code you specified does not exist
Error 2: The country you specified is not available
Error 3: The tax indicator is not defined in the calculation schema
Error 4: The tax indicator in the calcualation schema is not permitted
Error 5: Transaction key not found, or other
Error 6: Calculation schema not found
Error 7: A function with incorrect parameters was called
Error 8: Condition record not found
Error 9: Condition type not found
Error 10: Unknown error
Error 11: Jurisdiction code length not permitted

How to fix this error?

Make appropriate corrections, depending on the error.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message 88681 - VAT determination failed; error code &2 ?

  The SAP error message 88681, which states "VAT determination failed; error code &2," typically occurs during the VAT determination process in SAP. This error can arise due to various reasons related to configuration or data issues. Here’s a breakdown of the potential causes, solutions, and related information:
  Causes:
  
  
  Missing Configuration: The VAT determination configuration may not be set up correctly in the system. This includes missing tax codes, tax categories, or incorrect settings in the tax procedure.
  
  
  Incorrect Master Data: The master data for customers, vendors, or materials may not have the necessary tax information, such as tax classification or tax codes.
  
  
  Inconsistent Data: There may be inconsistencies in the data being processed, such as incorrect document types or missing information in the transaction.
  
  
  Country-Specific Settings: The error may be related to country-specific VAT settings that are not properly configured.
  
  
  Custom Code Issues: If there are custom developments or enhancements in the VAT determination process, they may be causing the error.
  
  
  Solutions:
  
  
  Check Configuration: Review the VAT configuration in the SAP system. Ensure that the tax codes and tax procedures are correctly defined and assigned to the relevant company codes and transaction types.
  
  
  Review Master Data: Verify that the master data for customers, vendors, and materials includes the correct tax classifications and tax codes. Make sure that the relevant fields are populated.
  
  
  Analyze Error Code: The error message includes an error code (&2) that can provide more specific information about the issue. Check the SAP documentation or transaction codes like SE91 (Message Class) to find more details about the error code.
  
  
  Test with Different Data: Try processing the transaction with different data to see if the error persists. This can help identify if the issue is data-specific.
  
  
  Consult SAP Notes: Look for relevant SAP Notes that may address this specific error. SAP frequently releases notes that provide fixes or workarounds for known issues.
  
  
  Debugging: If you have access to the development environment, consider debugging the VAT determination process to identify where the failure occurs.
  
  
  Engage SAP Support: If the issue persists and you cannot resolve it, consider reaching out to SAP Support for assistance. Provide them with the error details and any relevant configuration or transaction information.
  
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with transaction codes like OB40 (Define Tax Codes for Sales and Purchases), OBYZ (Assign Tax Codes to Company Codes), and OBCO (Define Tax Procedures) for configuration checks.
  Documentation: Review SAP documentation related to VAT determination and tax configuration for your specific country or region.
  User Forums: Engage with SAP community forums or user groups where similar issues may have been discussed.
  
  By following these steps, you should be able to diagnose and resolve the VAT determination error in SAP.