How To Fix FF704 - Tax code & in procedure & is invalid

FF704 - Overview

• Message type: E = Error

• Message class: FF - FI Function Module Messages

• Message number: 704

• Message text: Tax code & in procedure & is invalid

What causes this issue?

The tax code entered is not defined in the company code country.

System Response

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

INCLUDE FI_NA_CUST
Check whether the required tax procedure has been allocated to the
company code country. The <LS>Procedure</> field is on the detailed
screen.
If you need a new tax code, you can create one yourself.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FF704 - Tax code & in procedure & is invalid ?

  The SAP error message FF704 indicates that there is an issue with the tax code being used in a financial transaction. Specifically, the message states that the tax code is invalid in the context of the procedure being executed. This error typically arises during the posting of financial documents, such as invoices or payments, where tax codes are required for tax calculation.
  Causes of FF704 Error
  
  Invalid Tax Code: The tax code specified in the transaction does not exist in the system or is not valid for the current transaction type.
  Tax Code Configuration: The tax code may not be properly configured in the system. This includes missing tax rates or incorrect settings in the tax procedure.
  Transaction Type Restrictions: The tax code may not be applicable for the specific transaction type or document type being processed.
  Inactive Tax Code: The tax code may be inactive or not assigned to the relevant company code or