How To Fix FKKTAX020 - Non-deductible tax could not be assigned (see long text)

SAP Error Message - Details

• Message type: E = Error

• Message class: FKKTAX - Free Tax Code

• Message number: 020

• Message text: Non-deductible tax could not be assigned (see long text)

What causes this issue?

You want to create a tax posting with tax code &V1& in company code &V2&
. For this tax code, a percentage is entered in Customizing for
non-deductible input taxes or for output tax that is not to be paid.
However, the system could not assign the non-deductible input tax to any
expense item.

System Response

Error message

How to fix this error?

Check whether a suitable expense item exists for the tax item. You
should keep in mind that it is not possible to post the tax in an
alternative company code.

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 FKKTAX020 - Non-deductible tax could not be assigned (see long text) ?

  The SAP error message FKKTAX020 indicates that there is an issue with the assignment of non-deductible tax in the system. This error typically arises during the processing of financial transactions, particularly when dealing with tax codes and their corresponding settings.
  Cause:
  The error can occur due to several reasons, including:
  
  Incorrect Tax Code Configuration: The tax code being used may not be properly configured to allow for non-deductible tax assignments.
  Missing Tax Determination: The system may not have the necessary tax determination rules set up for the specific transaction or business area.
  Inconsistent Master Data: The vendor or customer master data may not be aligned with the tax settings, leading to issues in tax calculation.
  Transaction Type Issues: The type of transaction being processed may not support the non-deductible tax assignment.
  
  Solution:
  To resolve the FKKTAX020 error, you can take the following steps:
  
  
  Check Tax Code Configuration:
  
  Go to the transaction code OBYZ (or similar) to review the tax code settings.
  Ensure that the tax code is correctly set up for non-deductible tax and that the relevant settings are in place.
  
  
  
  Review Tax Determination Rules:
  
  Use transaction code OB40 to check the tax determination rules.
  Ensure that the rules are correctly defined for the relevant country and transaction type.
  
  
  
  Verify Master Data:
  
  Check the vendor or customer master data using transaction codes XK03 (for vendors) or FD03 (for customers).
  Ensure that the tax-related fields are correctly filled out and consistent with the tax code being used.
  
  
  
  Analyze the Transaction:
  
  Review the specific transaction that triggered the error. Ensure that it is appropriate for the tax code and that all necessary fields are filled out correctly.
  
  
  
  Consult Long Text:
  
  The error message suggests checking the long text for more details. You can do this by clicking on the error message or using the transaction code SE91 to find the long text associated with the error message.
  
  
  
  Testing:
  
  After making the necessary adjustments, test the transaction again to see if the error persists.
  
  
  
  Related Information:
  
  SAP Notes: Check SAP Notes for any known issues or patches related to this error message.
  Documentation: Review SAP documentation on tax configuration and non-deductible tax handling for more detailed guidance.
  Support: If the issue persists after troubleshooting, consider reaching out to SAP support or your internal SAP team for further assistance.
  
  By following these steps, you should be able to identify and resolve the cause of the FKKTAX020 error in your SAP system.