How To Fix FICORE704 - Tax code & in procedure & is invalid

SAP Error Message - Details

• Message type: E = Error

• Message class: FICORE - FI Message Class for General Messages

• Message number: 704

• Message text: Tax code & in procedure & is invalid

What causes this issue?

The tax code entered is not defined in the country for this company
code.

System Response

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

INCLUDE FI_NA_CUST
Check whether the required tax determination procedure is assigned to
the relevant country. the <LS>Procedure</> field is in the detail
screen.
Create a new tax code if required.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FICORE704 - Tax code & in procedure & is invalid ?

  The SAP error message FICORE704 indicates that there is an issue with the tax code being used in a financial transaction. Specifically, the message states that the tax code is invalid in the context of the procedure being executed. This can occur in various scenarios, such as during invoice processing, payment processing, or when posting accounting documents.
  Causes:
  
  Invalid Tax Code: The tax code specified in the transaction does not exist in the system or is not defined correctly.
  Tax Code Configuration: The tax code may not be configured for the specific transaction type or country.
  Inactive Tax Code: The tax code might be inactive or not available for the current fiscal year or period.
  Missing Tax Jurisdiction: If the tax code is jurisdiction-specific, it may not be set up for the relevant jurisdiction.
  Incorrect Posting Period: The tax code may not be valid for the posting period being used.
  
  Solutions:
  
  
  Check Tax Code Configuration:
  
  Go to the transaction code OBYZ (or the relevant configuration path) to check the configuration of the tax code.
  Ensure that the tax code is defined correctly and is active.
  
  
  
  Verify Tax Code in Document:
  
  Review the document or transaction where the error occurred to ensure that the correct tax code is being used.
  If necessary, change the tax code to a valid one.
  
  
  
  Check for Inactive Tax Codes:
  
  Ensure that the tax code is not marked as inactive in the system. You can check this in the tax code configuration.
  
  
  
  Review Posting Period:
  
  Ensure that the posting period is open and that the tax code is valid for that period.
  
  
  
  Consult with Tax Configuration Team:
  
  If you are unsure about the tax code setup, consult with your SAP tax configuration team or a functional consultant who specializes in tax settings.
  
  
  
  Testing:
  
  After making any changes, test the transaction again to ensure that the error is resolved.
  
  
  
  Related Information:
  
  
  Transaction Codes: 
  
  OBYZ: Maintain Tax Codes
  OB40: Define Tax Codes for Sales and Purchases
  FBL1N: Vendor Line Item Display (to check transactions)
  
  
  
  Documentation: Refer to SAP Help documentation for detailed information on tax code configuration and management.
  
  
  SAP Notes: Check for any relevant SAP Notes that may address specific issues related to tax codes and the FICORE704 error.
  
  
  By following these steps, you should be able to identify and resolve the issue related to the FICORE704 error message in SAP.