How To Fix FF775 - Company code & requires you to enter a tax jurisdiction code

SAP Error Message - Details

• Message type: E = Error

• Message class: FF - FI Function Module Messages

• Message number: 775

• Message text: Company code & requires you to enter a tax jurisdiction code

What causes this issue?

You cannot enter a <DS:DE.MWSKZ>tax code</> without a <DS:DE.TXJCD>tax
jurisdiction code</> in the <DS:DE.BUKRS>company code</> mentioned
since the <DS:DE.KALSM_D>calculation procedure</> requires you to enter
the jurisdiction.

System Response

Tax calculation cannot be carried out.

How to fix this error?

INCLUDE NA_SYSADMIN1 OBJECT DOKU ID TX LANGUAGE EN

Procedure for System Administrators

Add the tax jurisdiction code to the tax code in Customizing for
<ZK>Financial Accounting</> by choosing <ZK>Financial Accounting Global
Settings -> Tax on Sales/Purchases -> Calculation -> Define tax codes
for sales and purchases</>.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FF775 - Company code & requires you to enter a tax jurisdiction code ?

  The SAP error message FF775 indicates that a tax jurisdiction code is required for a specific company code during a financial transaction, typically related to tax calculations. This error often arises in the context of accounts payable or accounts receivable when processing invoices or payments.
  Cause:
  
  Missing Tax Jurisdiction Code: The primary cause of this error is that the tax jurisdiction code has not been defined for the company code in question. This code is necessary for determining the correct tax rates and compliance with local tax regulations.
  Configuration Issues: The tax jurisdiction may not be properly configured in the system, or the relevant tax codes may not be assigned to the company code.
  Transaction Type: Certain transaction types may require a tax jurisdiction code, and if it is not provided, the system will throw this error.
  
  Solution:
  
  Enter Tax Jurisdiction Code: When prompted by the error message, you should enter the appropriate tax jurisdiction code for the company code involved in the transaction.
  Check Configuration:
  
  Go to the SAP configuration settings (transaction code SPRO).
  Navigate to Financial Accounting (FI) > Financial Accounting Global Settings > Tax on Sales/Purchases > Basic Settings > Define Tax Jurisdiction Codes.
  Ensure that the tax jurisdiction codes are defined and correctly assigned to the relevant company codes.
  
  
  Assign Tax Codes: Ensure that the tax codes used in your transactions are linked to the correct tax jurisdiction codes. This can be done in the same configuration area.
  Review Master Data: Check the vendor or customer master data to ensure that the tax jurisdiction code is correctly maintained.
  Consult Documentation: If you are unsure about the correct tax jurisdiction code to use, consult your organization's tax documentation or speak with your finance department.
  
  Related Information:
  
  Tax Jurisdiction Codes: These codes are used to determine the applicable tax rates based on the location of the transaction. They are particularly important in regions with complex tax regulations.
  SAP Notes: Check SAP Notes for any updates or specific guidance related to this error message. SAP frequently releases notes that address common issues and provide solutions.
  User Roles and Authorizations: Ensure that the user processing the transaction has the necessary authorizations to enter or modify tax jurisdiction codes.
  
  By following these steps, you should be able to resolve the FF775 error and ensure that your transactions are processed correctly with the appropriate tax jurisdiction codes.