How To Fix AR128 - Tax code 2 is not valid

SAP Error Message - Details

• Message type: E = Error

• Message class: AR - SSRV function module messages

• Message number: 128

• Message text: Tax code 2 is not valid

Self-Explanatory Message

Since SAP believes that this specific error message is 'self-explanatory,' no more information has been given.The majority of messages in the SAP system have a message text, however this is frequently insufficient to comprehend or resolve the problem.

To make things easier, more detailed information is frequently added to describe the issue, how to fix it, and the necessary steps or configuration modifications.

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Smart SAP Assistant

• What is the cause and solution for SAP error message AR128 - Tax code 2 is not valid ?

  The SAP error message AR128, which states "Tax code 2 is not valid," typically occurs when there is an issue with the tax code configuration in the SAP system. This error can arise in various scenarios, such as during invoice processing, sales order creation, or when posting accounting documents.
  Causes of AR128 Error
  
  Invalid Tax Code: The tax code specified in the transaction does not exist in the system or is not valid for the current transaction.
  Tax Code Configuration: The tax code may not be properly configured in the system, or it may not be assigned to the relevant company code or transaction type.
  Inactive Tax Code: The tax code might be inactive or not applicable for the current fiscal year or period.
  Missing Tax Jurisdiction: If the tax code is jurisdiction-based, the relevant jurisdiction may not be set up correctly.
  Document Type Restrictions: Certain document types may have restrictions on which tax codes can be used.
  
  Solutions to AR128 Error
  
  
  Check Tax Code Validity:
  
  Go to the transaction code OB40 (Define Tax Codes) or FTXP (Maintain Tax Codes) to verify if the tax code "2" exists and is correctly configured.
  Ensure that the tax code is active and applicable for the relevant company code and transaction type.
  
  
  
  Review Tax Code Assignment:
  
  Ensure that the tax code is assigned to the correct company code and that it is valid for the relevant fiscal year.
  Check if the tax code is assigned to the appropriate account types in the configuration.
  
  
  
  Update Tax Code:
  
  If the tax code is incorrect, update the transaction to use a valid tax code.
  If necessary, create a new tax code that meets the requirements of the transaction.
  
  
  
  Check Document Type Settings:
  
  Review the document type settings to ensure that the tax code is allowed for the specific document type being processed.
  
  
  
  Consult with Tax Configuration Team:
  
  If you are unsure about the tax code configuration, consult with your SAP tax configuration team or a functional consultant who specializes in tax settings.
  
  
  
  Related Information
  
  
  Transaction Codes:
  
  OB40: Define Tax Codes
  FTXP: Maintain Tax Codes
  OBYZ: Assign Tax Codes to Company Codes
  OBB8: Define Tax Calculation Procedure
  
  
  
  SAP Notes: Check for any relevant SAP Notes that may address specific issues related to tax codes and error messages.
  
  
  Documentation: Review SAP documentation on tax configuration and management to ensure compliance with local tax regulations.
  
  
  By following these steps, you should be able to identify the cause of the AR128 error and implement the necessary solutions to resolve it.