How To Fix FC704 - You cannot set both the EU and GCC indicators

SAP Error Message - Details

• Message type: E = Error

• Message class: FC - FI configuration error messages

• Message number: 704

• Message text: You cannot set both the EU and GCC indicators

What causes this issue?

You cannot select both the <LS>EU Country</> and <LS>GCC Country</>
check boxes for the same country.

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 FC704 - You cannot set both the EU and GCC indicators ?

  The SAP error message FC704, which states "You cannot set both the EU and GCC indicators," typically occurs in the context of financial accounting or tax configuration within the SAP system. This error indicates that there is a conflict in the settings related to tax indicators for transactions that involve European Union (EU) and Gulf Cooperation Council (GCC) countries.
  Cause:
  The error arises when both the EU and GCC tax indicators are activated for a transaction or configuration setting. In SAP, these indicators are mutually exclusive because they represent different tax regimes and compliance requirements. The system does not allow both indicators to be set simultaneously for a single transaction or master data record.
  Solution:
  To resolve this error, you need to ensure that only one of the indicators (either EU or GCC) is set for the relevant transaction or configuration. Here are the steps to troubleshoot and fix the issue:
  
  
  Identify the Transaction: Determine which transaction or document is causing the error. This could be an invoice, purchase order, or any other financial document.
  
  
  Check Tax Configuration:
  
  Go to the relevant configuration settings in SAP (usually found in the SPRO transaction).
  Navigate to the tax settings and check the configuration for the specific country or region involved in the transaction.
  
  
  
  Review Master Data:
  
  Check the master data (such as vendor or customer records) to see if both indicators are set.
  If both indicators are activated, decide which one is appropriate based on the nature of the transaction and the location of the parties involved.
  
  
  
  Adjust Settings:
  
  If you find that both indicators are set, modify the settings to ensure that only one is active.
  Save the changes and try processing the transaction again.
  
  
  
  Consult Documentation: If you are unsure about which indicator to use, refer to SAP documentation or consult with your finance or tax department to ensure compliance with local regulations.
  
  
  Related Information:
  
  Tax Configuration in SAP: Understanding how tax codes and indicators work in SAP is crucial for proper financial reporting and compliance.
  Country-Specific Settings: Different countries have different tax regulations, and SAP allows for configuration based on these requirements.
  SAP Notes: Check for any relevant SAP Notes that might provide additional guidance or updates related to this error message.
  
  By following these steps, you should be able to resolve the FC704 error and ensure that your SAP system is configured correctly for tax processing.