How To Fix FF732 - Tax code & may not contain a nondeductible portion

FF732 - Overview

• Message type: E = Error

• Message class: FF - FI Function Module Messages

• Message number: 732

• Message text: Tax code & may not contain a nondeductible portion

What causes this issue?

In the case of direct postings to tax accounts, no tax codes
containing a nondeductible portion to be distributed may be used.

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. You might have to define a separate
tax code, that does not contain a nondeductible portion, for direct
postings to a tax account.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FF732 - Tax code & may not contain a nondeductible portion ?

  The SAP error message FF732 indicates that there is an issue with the tax code being used in a transaction. Specifically, it states that the tax code may not contain a nondeductible portion. This typically occurs in the context of financial transactions where tax codes are applied to determine the deductibility of certain expenses.
  
  Cause:
  
  Incorrect Tax Code Configuration: The tax code being used may be configured to include a nondeductible portion, which is not allowed in the context of the transaction you are trying to process.
  Transaction Type: The type of transaction (e.g., invoice, payment) may not support the use of a tax code that has nondeductible components.
  Master Data Issues: The vendor or customer master data may have settings that conflict with the tax code being applied.
  Tax Jurisdiction: The tax jurisdiction settings may not align with the tax code being used, leading to this error.
  
  
  Solution:
  
  
  Review Tax Code Configuration: Check the configuration of