How To Fix FS227 - Tax code & only for company codes with sales taxes

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 227

• Message text: Tax code & only for company codes with sales taxes

What causes this issue?

The percentage rates for this tax code were maintained by considering
information for sales tax. However, the company code which is currently
posted, does not allow processing of sales tax.

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?

If necessary, use another tax code.
If actual sales tax is to be taken into account, then the company code
in the default settings is to be indicated correspondingly.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FS227 - Tax code & only for company codes with sales taxes ?

  The SAP error message FS227 typically indicates an issue related to tax codes in the context of financial transactions, particularly when dealing with company codes that are configured to handle sales taxes. Here’s a breakdown of the cause, potential solutions, and related information for this error:
  Cause:
  
  Missing Tax Code: The tax code specified in the transaction is not defined in the system for the relevant company code.
  Incorrect Configuration: The company code may not be properly configured to handle sales taxes, or the tax code may not be assigned to the relevant account.
  Tax Code Inactive: The tax code might be inactive or not applicable for the specific transaction type.
  Transaction Type Mismatch: The transaction type being processed may not be compatible with the specified tax code.
  
  Solution:
  
  
  Check Tax Code Configuration:
  
  Go to the transaction code OBYZ (or use the path: SPRO > Financial Accounting > Tax on Sales/Purchases > Basic Settings > Check Tax Code).
  Ensure that the tax code in question is defined and active for the relevant company code.
  
  
  
  Assign Tax Code to Company Code:
  
  Ensure that the tax code is assigned to the relevant company code. This can be done in the same configuration area mentioned above.
  
  
  
  Review Transaction Details:
  
  Verify the details of the transaction you are trying to process. Ensure that the correct tax code is being used and that it is applicable for the transaction type.
  
  
  
  Check for Inactive Tax Codes:
  
  If the tax code is inactive, you may need to activate it or use a different tax code that is active.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or consult with your SAP support team for specific guidelines related to tax code configuration and usage.
  
  
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as OBYZ (for tax code configuration) and FS00 (for account master data).
  Tax Jurisdictions: Ensure that the tax codes are correctly set up for the jurisdictions in which your company operates.
  SAP Notes: Check SAP Notes for any known issues or updates related to tax code handling in your version of SAP.
  Testing: After making changes, perform test transactions to ensure that the error is resolved and that the tax calculations are correct.
  
  If the issue persists after following these steps, it may be beneficial to engage with your SAP support team or a consultant who specializes in SAP Financials for further assistance.