How To Fix FF727 - This tax code does not contain a deductible portion

FF727 - Overview

• Message type: E = Error

• Message class: FF - FI Function Module Messages

• Message number: 727

• Message text: This tax code does not contain a deductible portion

What causes this issue?

The used tax code does not contain a tax percentage for deductible
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?

Please use another tax code which contains deductible and
nondeductible tax.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FF727 - This tax code does not contain a deductible portion ?

  The SAP error message FF727, which states "This tax code does not contain a deductible portion," typically occurs during the processing of financial transactions involving tax codes in SAP. This error indicates that the tax code being used does not have a portion that can be deducted for tax purposes, which is often relevant in the context of VAT (Value Added Tax) or sales tax.
  
  Cause:
  
  Tax Code Configuration: The tax code in question may not be configured to allow for a deductible portion. This can happen if the tax code is set up as a non-deductible tax code or if it is meant for transactions that do not allow for input tax deduction.
  Transaction Type: The nature of the transaction may not qualify for a deductible tax portion. For example, certain expenses may not be eligible for VAT recovery.
  Incorrect Tax Code Usage: The user may have selected an incorrect tax code for