How To Fix DEFTAX_MX205 - Tax code & is not deferred

SAP Error Message - Details

• Message type: E = Error

• Message class: DEFTAX_MX - Message Class : Deferred Tax Localisation for Mexico

• Message number: 205

• Message text: Tax code & is not deferred

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message DEFTAX_MX205 - Tax code & is not deferred ?

  The SAP error message DEFTAX_MX205 indicates that a tax code is not set up for deferred tax processing in the system. This error typically arises in the context of tax calculations, particularly in Mexico, where deferred tax handling is important for compliance with local tax regulations.
  Cause:
  
  Tax Code Configuration: The tax code you are trying to use is not configured to allow for deferred tax processing. This could be due to missing settings in the tax code configuration.
  Incorrect Tax Code Usage: The tax code being used may not be appropriate for the transaction type or the specific business scenario.
  Missing Customization: The system may not have been customized to handle deferred taxes correctly, leading to this error when attempting to process transactions that require it.
  
  Solution:
  
  
  Check Tax Code Configuration:
  
  Go to the transaction code OBYZ (or the relevant configuration path) to review the tax code settings.
  Ensure that the tax code in question is marked for deferred tax processing. You may need to consult with your SAP FI/CO consultant to verify the settings.
  
  
  
  Update Tax Code:
  
  If the tax code is not set up for deferred tax, you may need to create a new tax code or modify the existing one to include deferred tax settings.
  Ensure that the tax code is linked to the correct tax accounts in the chart of accounts.
  
  
  
  Review Transaction Type:
  
  Ensure that the transaction you are processing is appropriate for the tax code being used. If necessary, select a different tax code that is configured for deferred tax.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or notes related to tax code configuration and deferred tax handling in Mexico. This can provide insights into best practices and required settings.
  
  
  
  Testing:
  
  After making changes, perform a test transaction to ensure that the error no longer occurs and that the deferred tax is calculated correctly.
  
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on configuring deferred taxes in Mexico.
  Tax Compliance: Ensure that your organization is compliant with local tax regulations regarding deferred taxes, as improper handling can lead to legal issues.
  Consult SAP Support: If the issue persists after checking configurations, consider reaching out to SAP support for further assistance.
  
  By following these steps, you should be able to resolve the DEFTAX_MX205 error and ensure that your tax codes are properly configured for deferred tax processing.