How To Fix FR455 - W/holding tax cat.can only be specified for co.codes with w/holding tax 2

SAP Error Message - Details

• Message type: E = Error

• Message class: FR - Messages for FI Reporting

• Message number: 455

• Message text: W/holding tax cat.can only be specified for co.codes with w/holding tax 2

What causes this issue?

A withholding tax type was specified in the selection. However,
withholding tax 1 has been set for the specified company codes.
Withholding tax types do not have any meaning for company codes with
withholding tax 1.

System Response

Error message

How to fix this error?

Delete the selection for the withholding tax types.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FR455 - W/holding tax cat.can only be specified for co.codes with w/holding tax 2 ?

  The SAP error message FR455 indicates that there is an issue with the withholding tax category configuration in your SAP system. Specifically, it states that the withholding tax category can only be specified for company codes that are set up to use withholding tax type 2.
  Cause:
  
  Incorrect Configuration: The company code you are working with is not configured to use withholding tax type 2, but you are trying to assign a withholding tax category that is only applicable for this type.
  Missing Settings: The withholding tax settings for the company code may not be properly defined in the system.
  Data Entry Error: There may be an error in the data entry where the withholding tax category is being incorrectly assigned.
  
  Solution:
  
  
  Check Company Code Configuration:
  
  Go to the transaction code OBY6 (or navigate through the menu: SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Withholding Tax > Basic Settings > Define Company Code).
  Ensure that the company code is set up to use withholding tax type 2. If it is not, you may need to adjust the configuration.
  
  
  
  Review Withholding Tax Categories:
  
  Navigate to SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Withholding Tax > Basic Settings > Define Withholding Tax Types.
  Verify that the withholding tax categories are correctly assigned to the appropriate withholding tax types.
  
  
  
  Adjust Document Settings:
  
  If you are entering a document, ensure that the withholding tax category you are trying to use is compatible with the company code's configuration.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or help files related to withholding tax configuration to ensure that all necessary settings are in place.
  
  
  
  Testing:
  
  After making any changes, perform a test transaction to ensure that the error no longer occurs.
  
  
  
  Related Information:
  
  Withholding Tax Types: In SAP, withholding tax types are used to categorize different types of withholding taxes that may apply to transactions. Type 2 is typically used for specific scenarios, and it is essential to ensure that the company code is set up to handle it.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as OBY6 for company code settings and OBW1 for withholding tax type settings.
  SAP Notes: Check for any SAP Notes related to withholding tax issues, as they may provide additional insights or solutions.
  
  If the issue persists after checking the configuration and settings, it may be beneficial to consult with your SAP support team or a consultant who specializes in SAP Financial Accounting.