How To Fix FMBGA016 - Tax code "No Tax Transaction" is not defined in company code &1

SAP Error Message - Details

• Message type: E = Error

• Message class: FMBGA - Messages for Public-Owned Commercial Operations

• Message number: 016

• Message text: Tax code "No Tax Transaction" is not defined in company code &1

What causes this issue?

You cannot post an input tax adjustment as no tax code for non-taxable
transactions was defined in Financial Accounting Customizing for the
company code &V1& specified.

System Response

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

How to fix this error?

Define the relevant tax code for company code &V1& in Financial
Accounting Customizing.

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 FMBGA016 - Tax code "No Tax Transaction" is not defined in company code &1 ?

  The SAP error message FMBGA016 indicates that a tax code is not defined for a specific company code in the system. This error typically arises during financial transactions where tax codes are required for proper accounting and reporting.
  Cause:
  
  Missing Tax Code Definition: The tax code you are trying to use is not defined in the system for the specified company code.
  Incorrect Configuration: The tax code may not be properly configured in the tax settings for the company code.
  Transaction Type: The transaction being processed may not be compatible with the tax code being used.
  
  Solution:
  To resolve the FMBGA016 error, follow these steps:
  
  
  Check Tax Code Configuration:
  
  Go to the SAP transaction code OBYZ (or SPRO -> Financial Accounting -> Financial Accounting Global Settings -> Tax on Sales/Purchases -> Basic Settings -> Check Tax Codes).
  Verify if the tax code in question is defined for the relevant company code.
  
  
  
  Define Tax Code:
  
  If the tax code is missing, you will need to create it. You can do this in the same configuration area:
  
  Select the appropriate country and create a new tax code or modify an existing one.
  Ensure that the tax percentage and other relevant details are correctly set.
  
  
  
  
  
  Assign Tax Code to Company Code:
  
  Ensure that the tax code is assigned to the company code. This can be done in the same configuration area where you define the tax codes.
  
  
  
  Check Transaction Type:
  
  Ensure that the transaction type you are processing is compatible with the tax code being used. Some tax codes may only apply to specific types of transactions.
  
  
  
  Testing:
  
  After making the necessary changes, perform a test transaction to ensure that the error no longer occurs.
  
  
  
  Related Information:
  
  
  Transaction Codes: 
  
  OBYZ: To check and define tax codes.
  SPRO: To access the configuration menu for financial accounting settings.
  
  
  
  Documentation: Refer to SAP Help documentation for detailed steps on configuring tax codes and understanding tax settings in your specific version of SAP.
  
  
  User Roles: Ensure that you have the necessary authorizations to make changes to tax code configurations.
  
  
  Consulting with Finance Team: It may be beneficial to consult with your finance or accounting team to ensure that the tax codes align with your organization's tax policies and compliance requirements.
  
  
  By following these steps, you should be able to resolve the FMBGA016 error and ensure that the tax codes are correctly configured for your company code.