How To Fix FH606 - Different tax categories in company codes &1 and &3

SAP Error Message - Details

• Message type: E = Error

• Message class: FH - General ledger module messages

• Message number: 606

• Message text: Different tax categories in company codes &1 and &3

What causes this issue?

With tax-relevant accounts, it is not permitted for output tax and input
tax to be different in the 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

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FH606 - Different tax categories in company codes &1 and &3 ?

  The SAP error message FH606 indicates that there is a mismatch in tax categories between two company codes in a financial transaction. This typically occurs when you are trying to post a transaction that involves multiple company codes, and the tax settings for those company codes are not aligned.
  Cause:
  
  Different Tax Categories: The company codes involved in the transaction have different tax categories set up in their configuration. This can happen if one company code is set to use a specific tax type (e.g., VAT, sales tax) while the other is set to use a different type.
  Configuration Issues: The tax configuration in the SAP system may not be consistent across the company codes. This can include differences in tax codes, tax rates, or tax determination rules.
  Cross-Company Code Transactions: If you are trying to post a cross-company code transaction, the tax settings must be compatible for the transaction to be processed.
  
  Solution:
  
  
  Check Tax Configuration: Review the tax configuration for both company codes involved in the transaction. Ensure that they are set up to use the same tax categories and codes.
  
  Go to the transaction code OBYZ to check the tax codes and their assignments.
  Ensure that the tax types and rates are consistent across the company codes.
  
  
  
  Adjust Tax Categories: If necessary, adjust the tax categories in one of the company codes to match the other. This may involve changing the tax code or updating the tax settings in the configuration.
  
  
  Consult with Finance Team: If you are unsure about the correct tax settings, consult with your finance or accounting team to ensure compliance with tax regulations and internal policies.
  
  
  Testing: After making changes, perform a test transaction to ensure that the error does not occur again.
  
  
  Documentation: Document any changes made to the tax configuration for future reference and compliance.
  
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as:
  
  OBYZ: Maintain Tax Codes
  OB40: Define Tax Categories
  OBD2: Assign Tax Codes to Company Codes
  
  
  SAP Notes: Check for any SAP Notes related to tax configuration and error FH606 for additional guidance or known issues.
  User Roles: Ensure that you have the necessary authorizations to make changes to tax configurations in the system.
  
  By addressing the configuration discrepancies and ensuring consistency in tax settings across company codes, you should be able to resolve the FH606 error.