How To Fix AH632 - Tax code could not be determined

AH632 - Overview

• Message type: E = Error

• Message class: AH - IS-U billing (master data)

• Message number: 632

• Message text: Tax code could not be determined

What causes this issue?

A line item relevant to posting is to be generated. As part of this
process, the system determines a tax code for sub-transaction &v1&. The
tax code could not be determined.

System Response

How to fix this error?

Select a different sub-transaction, or check your Customzing settings
for tax calculation.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message AH632 - Tax code could not be determined ?

  The SAP error message AH632, which states "Tax code could not be determined," typically occurs during the processing of transactions that involve tax calculations, such as sales orders, invoices, or purchase orders. This error indicates that the system was unable to determine the appropriate tax code for the transaction based on the provided data.
  Causes of Error AH632
  
  
  Missing Tax Configuration: The tax codes may not be properly configured in the system. This includes missing tax rates or tax categories for the relevant country or region.
  
  
  Incorrect Master Data: The master data for customers, vendors, or materials may not have the necessary tax information. For example, a customer may not have a tax classification assigned.
  
  
  Inconsistent Data: There may be inconsistencies in the data entered in the transaction, such as incorrect country codes, incorrect tax jurisdiction codes, or missing information in the master data.
  
  
  Tax Determination Procedure: The tax determination procedure may not be set