How To Fix EXTAX_CHECK_US020 - Incorrect default jurisdiction code for non-taxable transactions.

SAP Error Message - Details

• Message type: E = Error

• Message class: EXTAX_CHECK_US - Message for Extax configuration check

• Message number: 020

• Message text: Incorrect default jurisdiction code for non-taxable transactions.

What causes this issue?

Because the unified jurisdiction code structure (UJCS) is active for the
US, the jurisdiction code for non-taxable transactions must be
?US0000000000000?.

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?

Open the Set Up US Tax Calculation Procedure configuration step. Select
Assign Tax Codes for Non-Taxable Transactions. In the Jurisdiction Code
column, change the jurisdiction code to ?US0000000000000? and save.
If the problem persists, please create an incident for component
FI-CNT-GL.

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 EXTAX_CHECK_US020 - Incorrect default jurisdiction code for non-taxable transactions. ?

  The SAP error message EXTAX_CHECK_US020 indicates that there is an issue with the jurisdiction code being used for non-taxable transactions. This error typically arises in the context of tax determination in the United States, where specific jurisdiction codes are required for different types of transactions, including taxable and non-taxable ones.
  
  Cause:
  
  Incorrect Jurisdiction Code: The jurisdiction code assigned to the transaction is not valid for non-taxable transactions. This can happen if the system is configured to expect a specific jurisdiction code for non-taxable items, but the code provided does not meet the criteria.
  
  Configuration Issues: The tax configuration in the SAP system may not be set up correctly, leading to mismatches between the jurisdiction codes and the transaction types.
  Master Data Issues: The master data for customers, vendors, or materials may not have the correct tax classification or jurisdiction code assigned.
  
  
  Solution:
  
  Check Jurisdiction Code: Verify the jurisdiction code being used for the transaction. Ensure that