How To Fix F7321 - Do not use the VAT refund code for deferred taxes

F7321 - Overview

• Message type: E = Error

• Message class: F7 - Program Error Messages

• Message number: 321

• Message text: Do not use the VAT refund code for deferred taxes

What causes this issue?

This tax code is flagged as VAT refund-relevant.
Tax codes that are relevant for 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.

Smart SAP Assistant

• What is the cause and solution for SAP error message F7321 - Do not use the VAT refund code for deferred taxes ?

  The SAP error message F7321, which states "Do not use the VAT refund code for deferred taxes," typically occurs in the context of financial transactions involving Value Added Tax (VAT) in SAP systems. This error indicates that there is an issue with the VAT refund code being used in a transaction that involves deferred taxes.
  
  Cause:
  
  Incorrect VAT Refund Code: The VAT refund code being used is not appropriate for the type of transaction. Specifically, it may be that the code is meant for immediate VAT refunds rather than deferred taxes.
  
  Configuration Issues: The configuration settings in the SAP system may not be set up correctly to handle deferred taxes with the specified VAT refund code.
  Transaction Type: The transaction type being processed may not support the use of the specified VAT refund code, especially if it involves deferred tax accounting.
  
  
  Solution:
  
  Check VAT Refund Code: Review the VAT refund code being used in the transaction.