How To Fix F7318 - Tax code &1 is used for deferred taxes

F7318 - Overview

• Message type: E = Error

• Message class: F7 - Program Error Messages

• Message number: 318

• Message text: Tax code &1 is used for deferred taxes

What causes this issue?

Tax codes that are relevant for input VAT refunds must not be used for
deferred taxes.

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?

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

F7318 - Details

• The SAP error message F7318 indicates that a specific tax code is being used for deferred taxes, which is not allowed in certain contexts. This error typically arises when trying to post a transaction that involves a tax code that is designated for deferred tax purposes, but the system does not allow such postings in the current context.
  
  Cause:
  
  Tax Code Configuration: The tax code in question is configured for deferred tax purposes in the system. This means it is intended to be used in specific scenarios, such as tax deferral or tax reconciliation, rather than standard transactions.
  Posting Context: The transaction you are trying to post may not be compatible with the use of deferred tax codes. For example, certain types of postings (like standard sales or purchases) may not allow deferred tax codes.
  Incorrect Tax Code Usage: The tax code may have been incorrectly assigned to a transaction that does not support