How To Fix FQ640 - Do not use taxes in cross-company code activities

SAP Error Message - Details

• Message type: E = Error

• Message class: FQ - Payment Requests and Payment Program

• Message number: 640

• Message text: Do not use taxes in cross-company code activities

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message FQ640 - Do not use taxes in cross-company code activities ?

  The SAP error message FQ640, "Do not use taxes in cross-company code activities," typically occurs in the context of financial transactions that involve multiple company codes. This error indicates that the system has detected an attempt to apply tax calculations in a cross-company code transaction, which is not allowed in certain configurations.
  Cause:
  
  Cross-Company Code Transactions: The error arises when a transaction involves multiple company codes, and there is an attempt to apply tax calculations. In SAP, tax calculations are generally expected to be handled within the same company code.
  Configuration Settings: The system configuration may not allow for tax calculations in cross-company code transactions. This is often a deliberate design choice to maintain compliance with tax regulations and accounting principles.
  Document Type or Posting Key: The document type or posting key used in the transaction may not be configured to handle taxes in cross-company scenarios.
  
  Solution:
  
  Review Transaction Structure: Ensure that the transaction is structured correctly. If possible, try to keep the transaction within a single company code to avoid the error.
  Check Configuration: Review the configuration settings in the SAP system related to tax handling and cross-company code transactions. This may involve:
  
  Checking the settings in the Financial Accounting (FI) module.
  Reviewing the tax configuration in the relevant company codes.
  
  
  Use Intercompany Transactions: If the transaction must involve multiple company codes, consider using intercompany transactions that are specifically designed to handle such scenarios. This may involve creating intercompany billing documents or using specific intercompany pricing procedures.
  Consult Documentation: Refer to SAP documentation or consult with your SAP support team to understand the specific configuration settings that may need to be adjusted.
  Error Handling: If the error persists, consider implementing error handling procedures to manage such transactions more effectively.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide guidance on configuration settings.
  SAP Community: Engage with the SAP Community forums to see if other users have encountered similar issues and what solutions they have implemented.
  Training and Documentation: Ensure that users involved in financial transactions are trained on the implications of cross-company code activities and the associated restrictions regarding tax calculations.
  
  By addressing the underlying causes and following the suggested solutions, you should be able to resolve the FQ640 error and ensure compliance with SAP's handling of cross-company code transactions.