How To Fix F2196 - Extended withholding tax funtionality is not active

SAP Error Message - Details

• Message type: E = Error

• Message class: F2 - Master Data Maintenance: Customer, Vendor

• Message number: 196

• Message text: Extended withholding tax funtionality is not active

What causes this issue?

You have selected the withholding tax screen. This can, however, not be
displayed since the extended withholding tax functionality is not
active for the selected company code.

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?

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message F2196 - Extended withholding tax funtionality is not active ?

  The SAP error message F2196, which states "Extended withholding tax functionality is not active," typically occurs when you are trying to use features related to extended withholding tax in SAP, but the necessary configuration or activation for this functionality has not been completed.
  Cause:
  
  Configuration Not Activated: The extended withholding tax functionality has not been activated in the system.
  Missing Settings: Required settings in the configuration for withholding tax are incomplete or missing.
  Incorrect Company Code Settings: The company code may not be set up to use extended withholding tax.
  
  Solution:
  To resolve this error, you need to activate the extended withholding tax functionality and ensure that all necessary configurations are in place. Here are the steps to do this:
  
  
  Activate Extended Withholding Tax:
  
  Go to the SAP Easy Access screen.
  Navigate to SPRO (SAP Project Reference Object) > SAP Reference IMG.
  Follow the path: Financial Accounting (New) > Accounts Payable > Withholding Tax > Basic Settings.
  Look for the option to activate the extended withholding tax functionality and ensure it is enabled.
  
  
  
  Configure Withholding Tax Types:
  
  In the same configuration area, ensure that the withholding tax types are properly defined and configured.
  Check the settings for the relevant withholding tax codes and ensure they are set up correctly.
  
  
  
  Check Company Code Settings:
  
  Ensure that the company code you are working with is configured to use the extended withholding tax functionality.
  Go to Financial Accounting > Accounts Payable > Withholding Tax > Basic Settings > Define Company Code for Withholding Tax and verify the settings.
  
  
  
  Test the Configuration:
  
  After making the necessary changes, perform a test transaction to ensure that the error no longer appears.
  
  
  
  Related Information:
  
  Documentation: Refer to SAP Help documentation for detailed steps on configuring withholding tax.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as OBB8 (for defining withholding tax types) and OBC4 (for company code settings).
  User Roles: Ensure that you have the necessary authorizations to make changes to the configuration settings.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP Basis or functional team for further assistance, as there may be additional underlying issues or system-specific configurations that need to be addressed.