How To Fix FS205 - Tax code with non-deductible, distributable amount not permitted

FS205 - Overview

• Message type: E = Error

• Message class: FS - Messages from Tax Routines / Prenumbered Checks

• Message number: 205

• Message text: Tax code with non-deductible, distributable amount not permitted

What causes this issue?

You are entering a down payment or a down payment request using a tax
code for amounts that include a non-deductible, distributable portion.

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

Since down payments do not, as a rule, contain any expense or cost
items, it is not possible to distribute the non-deductible tax amount.

System Response

How to fix this error?

You must use a different tax code. If necessary, you must create a new
tax code containing the same percentages as the code you are trying to
use now but which prompts the system to create a separate line item for
the non-deductible tax amount.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FS205 - Tax code with non-deductible, distributable amount not permitted ?

  The SAP error message FS205 indicates that there is an issue with the tax code being used in a financial transaction. Specifically, it means that the tax code is associated with a non-deductible tax amount, and the system does not allow this tax code to be used in a context where a distributable amount is expected.
  
  Cause:
  
  Tax Code Configuration: The tax code in question is configured in such a way that it is marked as non-deductible. This means that the tax amount cannot be claimed back or deducted from the tax liability.
  Transaction Type: The transaction you are trying to process may require a tax code that allows for deductibility, but the one you are using does not meet this requirement.
  Account Assignment: The account assignment for the transaction may not be compatible with the tax code being used, leading to this error.
  
  
  Solution:
  
  
  Check Tax Code Configuration:
  
  Go to the transaction code OBYZ (or use