How To Fix FH605 - Tax account definition is unclear; deviation in company codes

SAP Error Message - Details

• Message type: E = Error

• Message class: FH - General ledger module messages

• Message number: 605

• Message text: Tax account definition is unclear; deviation in company codes

What causes this issue?

If accounts are defined as tax accounts (tax category '<(><<)>' or '>'),
this must be the same in all company codes.
The tax category is different, however:
Company code &V1&: &V2&
Company code &V3&: &V4&

System Response

It is not possible to save.

How to fix this error?

Adjust the settings in the various company codes.

Procedure for System Administrators

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

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FH605 - Tax account definition is unclear; deviation in company codes ?

  The SAP error message FH605, which states "Tax account definition is unclear; deviation in company codes," typically occurs when there is a mismatch or inconsistency in the tax account settings across different company codes in the SAP system. This can happen during the configuration of tax accounts in the Financial Accounting (FI) module, particularly when dealing with tax codes and their associated accounts.
  Cause:
  
  Inconsistent Tax Account Configuration: The tax accounts defined for different company codes may not be aligned. For example, if one company code is set to use a specific tax account for a tax code, but another company code is set to use a different account for the same tax code, this inconsistency can trigger the error.
  Missing Tax Account Assignment: If a tax code is not assigned to a tax account in one or more company codes, it can lead to this error.
  Incorrect Tax Code Configuration: The tax code may not be properly configured in the system, leading to discrepancies in how it is applied across different company codes.
  
  Solution:
  To resolve the FH605 error, follow these steps:
  
  
  Check Tax Code Configuration:
  
  Go to the transaction code OBYZ (or navigate through the menu: Financial Accounting > Financial Accounting Global Settings > Tax on Sales/Purchases > Basic Settings > Check Tax Code).
  Verify that the tax codes are correctly defined and that they have the appropriate tax accounts assigned for each company code.
  
  
  
  Review Tax Account Assignments:
  
  Use transaction code OB40 to check the tax account assignments for each company code.
  Ensure that the same tax accounts are used consistently across all relevant company codes for the same tax codes.
  
  
  
  Adjust Company Code Settings:
  
  If there are deviations, you may need to adjust the tax account settings for the affected company codes to ensure consistency.
  Make sure that all company codes that use the same tax code have the same tax account assigned.
  
  
  
  Test Changes:
  
  After making the necessary adjustments, perform a test transaction to ensure that the error no longer occurs.
  
  
  
  Consult Documentation:
  
  If you are unsure about the correct tax account settings, refer to SAP documentation or consult with your finance team to ensure compliance with local tax regulations.
  
  
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as OBYZ (Tax Code Configuration), OB40 (Tax Account Assignment), and OBC4 (Define Tax Accounts).
  SAP Notes: Check SAP Notes for any known issues or updates related to tax account configuration that may provide additional insights or solutions.
  User Roles: Ensure that you have the necessary authorizations to make changes to tax account settings in the system.
  
  By following these steps, you should be able to resolve the FH605 error and ensure that your tax account definitions are clear and consistent across all company codes.