How To Fix AR223 - Tax code 5 is not valid

SAP Error Message - Details

• Message type: E = Error

• Message class: AR - SSRV function module messages

• Message number: 223

• Message text: Tax code 5 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 AR223 - Tax code 5 is not valid ?

  The SAP error message AR223, which states "Tax code 5 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.
  Cause:
  
  Invalid Tax Code: The tax code specified (in this case, "5") may not be defined in the system or may not be valid for the transaction being processed.
  Tax Code Configuration: The tax code might 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 could be inactive or not applicable for the current fiscal year or period.
  Missing Tax Jurisdiction: If the tax code is jurisdiction-based, it may not be set up correctly for the relevant location.
  
  Solution:
  
  
  Check Tax Code Configuration:
  
  Go to the transaction code OBYZ (or SPRO -> Financial Accounting -> Tax on Sales/Purchases -> Basic Settings -> Check Tax Codes) to verify if tax code "5" is defined and active.
  Ensure that the tax code is assigned to the correct company code and is valid for the relevant transaction types.
  
  
  
  Review Tax Code Validity:
  
  Check if the tax code is valid for the current fiscal year and period. If it is not, you may need to update the validity dates.
  
  
  
  Update Master Data:
  
  If the tax code is not applicable for the customer or vendor, update the master data accordingly. Ensure that the customer/vendor master records have the correct tax information.
  
  
  
  Consult with Tax Specialist:
  
  If you are unsure about the tax code's validity or configuration, consult with your finance or tax department to ensure compliance with local tax regulations.
  
  
  
  Testing:
  
  After making the necessary changes, perform a test transaction to ensure that the error no longer occurs.
  
  
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as OBYZ (for tax code configuration), VK11 (for condition records), and FB60 (for vendor invoices) to troubleshoot effectively.
  Documentation: Refer to SAP documentation or help files for detailed information on tax code setup and management.
  SAP Notes: Check SAP Notes for any known issues or patches related to tax code errors.
  
  By following these steps, you should be able to resolve the AR223 error and ensure that the tax code is correctly configured in your SAP system.