How To Fix EB227 - Tax line could not be created

SAP Error Message - Details

• Message type: E = Error

• Message class: EB - IS-U invoicing

• Message number: 227

• Message text: Tax line could not be created

What causes this issue?

The system cannot create a VAT line (subtotal) because multiple-contract
billing has to be executed and there is possible tax exemption for a
contract.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

You have the following options:
Use a presort key for bill printout that sorts the billing documents
according to contracts or company code.
Invoice every billing document individually.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message EB227 - Tax line could not be created ?

  The SAP error message EB227, which states "Tax line could not be created," typically occurs during the processing of financial documents, such as invoices or purchase orders, when the system is unable to generate the necessary tax line entries. This can happen for various reasons, and understanding the cause is crucial for resolving the issue.
  Causes of EB227 Error
  
  
  Missing Tax Configuration: The tax codes or tax rates may not be properly configured in the system. This can include missing tax types, incorrect tax jurisdiction settings, or incomplete tax condition records.
  
  
  Incorrect Master Data: The master data for customers, vendors, or materials may not have the correct tax classification or may be missing necessary tax information.
  
  
  Document Type Issues: The document type being used may not be set up to handle tax calculations correctly.
  
  
  Currency Issues: If there are currency conversion issues or if the tax rates are not defined for the currency being used, this can lead to the error.
  
  
  Tax Exemptions: If a customer or vendor is tax-exempt, but the system is still trying to calculate tax, it may lead to this error.
  
  
  Custom Code or Enhancements: If there are custom developments or enhancements in the system that interfere with standard tax processing, this could also cause the error.
  
  
  Solutions to EB227 Error
  
  
  Check Tax Configuration:
  
  Verify that the tax codes and rates are correctly configured in the system.
  Ensure that the necessary tax condition records are maintained in the system.
  
  
  
  Review Master Data:
  
  Check the master data for the relevant customer, vendor, or material to ensure that the correct tax classifications are assigned.
  Make sure that all required tax information is filled out.
  
  
  
  Document Type Settings:
  
  Review the settings for the document type being used to ensure it is configured to handle tax calculations.
  
  
  
  Currency Settings:
  
  Ensure that the tax rates are defined for the currency being used in the transaction.
  Check for any currency conversion issues that may be affecting tax calculations.
  
  
  
  Tax Exemption Handling:
  
  If the transaction involves a tax-exempt entity, ensure that the system is correctly configured to handle tax exemptions.
  
  
  
  Debugging Custom Code:
  
  If there are custom developments, review the code to identify any issues that may be causing the error.
  Consult with your ABAP developer if necessary.
  
  
  
  Related Information
  
  SAP Notes: Check SAP Notes for any known issues or patches related to the EB227 error. SAP frequently updates its knowledge base with solutions for common errors.
  Transaction Codes: Use transaction codes like OB40 (for tax codes) and OBYZ (for tax determination) to review and adjust tax settings.
  Testing: After making changes, test the transaction again to ensure that the error is resolved.
  Documentation: Refer to SAP documentation for detailed information on tax configuration and troubleshooting.
  
  If the issue persists after checking these areas, it may be beneficial to consult with your SAP support team or reach out to SAP support for further assistance.