How To Fix FC038 - Taxes on sales/purchases code & not created for country &

SAP Error Message - Details

• Message type: E = Error

• Message class: FC - FI configuration error messages

• Message number: 038

• Message text: Taxes on sales/purchases code & not created for country &

What causes this issue?

Tax code &V1&, which you specified for country &V2&, was not created.

System Response

Error message

How to fix this error?

Check your entries.

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

If necessary, create tax code &V1& for country &V2&.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FC038 - Taxes on sales/purchases code & not created for country & ?

  The SAP error message FC038 indicates that there is an issue with the tax configuration for a specific country in the system. This error typically arises when the system is unable to find the appropriate tax codes for sales or purchases for the specified country. Here’s a breakdown of the cause, potential solutions, and related information:
  Cause:
  
  Missing Tax Codes: The tax codes for the specified country are not defined in the system.
  Incorrect Configuration: The tax configuration for the country may not be set up correctly in the system.
  Country-Specific Settings: The country may have specific tax regulations that are not reflected in the SAP configuration.
  Master Data Issues: The master data for customers or vendors may not have the correct tax information.
  
  Solution:
  
  
  Check Tax Code Configuration:
  
  Go to the transaction code OBYZ (or SPRO -> Financial Accounting -> Tax on Sales/Purchases -> Basic Settings -> Check Tax Codes for Sales and Purchases).
  Ensure that the tax codes for the relevant country are created and active.
  
  
  
  Create Missing Tax Codes:
  
  If the tax codes are missing, create them using the same transaction (OBYZ).
  Ensure that the tax rates and other relevant details are correctly defined.
  
  
  
  Review Country-Specific Settings:
  
  Check if there are any specific requirements for the country in question that need to be configured.
  This may include VAT, GST, or other local tax regulations.
  
  
  
  Check Master Data:
  
  Review the customer or vendor master data to ensure that the correct tax classification is assigned.
  Use transaction codes like XD02 (for customers) or XK02 (for vendors) to check and update the tax information.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help files for specific country tax requirements and configurations.
  
  
  
  Testing:
  
  After making changes, perform a test transaction to ensure that the error no longer occurs.
  
  
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as OBYZ, SPRO, XD02, XK02, and others related to tax configuration.
  SAP Notes: Check SAP Notes for any known issues or updates related to tax configuration for specific countries.
  User Roles: Ensure that you have the necessary authorizations to make changes to tax configurations in SAP.
  Consult with Tax Experts: If you are unsure about the tax regulations for a specific country, consult with a tax expert or a consultant familiar with SAP tax configurations.
  
  By following these steps, you should be able to resolve the FC038 error and ensure that the tax codes are correctly set up for the specified country.