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

FMBGA016 - Overview

• 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