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

SAP Error Message - Details

• 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 business area.
  Missing Tax Jurisdiction: In some cases, the jurisdiction for the tax code may not be set up correctly, leading to the error.
  
  Solutions to FF704 Error
  
  
  Check Tax Code: Verify that the tax code being used is valid and exists in the system. You can do this by navigating to the tax code configuration in the SAP system (Transaction Code: OBYZ).
  
  
  Review Tax Code Configuration: Ensure that the tax code is properly configured with the correct tax rates and settings. Check the tax procedure assigned to the tax code (Transaction Code: OBQ3).
  
  
  Validate Transaction Type: Confirm that the tax code is applicable for the type of transaction you are trying to post. You may need to consult with your finance team or SAP consultant to ensure the correct tax code is being used.
  
  
  Activate Tax Code: If the tax code is inactive, you may need to activate it or assign it to the relevant company code or business area.
  
  
  Check Jurisdiction Settings: If applicable, ensure that the tax jurisdiction settings are correctly configured for the tax code.
  
  
  Consult Documentation: Review SAP documentation or consult with your SAP support team for specific guidance related to your configuration and business processes.
  
  
  Related Information
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as OBYZ (Maintain Tax Codes), OBQ3 (Maintain Tax Procedures), and FB60 (Enter Incoming Invoice) to troubleshoot and resolve the issue.
  SAP Notes: Check SAP Notes for any known issues or patches related to tax code errors. You can search for relevant notes in the SAP Support Portal.
  User Roles and Authorizations: Ensure that the user has the necessary authorizations to access and modify tax codes and related configurations.
  
  By following these steps, you should be able to identify the cause of the FF704 error and implement the appropriate solution. If the issue persists, consider reaching out to your SAP support team for further assistance.