How To Fix FS757 - EU indicator correctly set for output tax ?

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 757

• Message text: EU indicator correctly set for output tax ?

What causes this issue?

The EU indicator is used to classify the tax codes for the EC sales
list. Only postings with output VAT (taxes on sales/purchases) are
generally taken into consideration. In several EU countries, however,
postings with acquisition tax (input VAT) also have to be reported. An
EU indicator for the acquisition tax code only makes sense in such
cases. The EC sales list must, however, be carried out with a modified
version of the program in such cases, since a transfer of the VAT
registration number into the document does not currently take place in
the standard system when posting to vendor accounts.

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?

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FS757 - EU indicator correctly set for output tax ? ?

  The SAP error message FS757, which states "EU indicator correctly set for output tax," typically occurs in the context of VAT (Value Added Tax) processing in SAP, particularly when dealing with transactions that involve cross-border sales within the European Union (EU). This error indicates that there is an issue with the configuration or data related to the EU tax indicator for output tax.
  Cause:
  
  Incorrect Tax Code Configuration: The tax code used in the transaction may not be properly configured to handle EU transactions. This includes the EU indicator not being set correctly for the output tax.
  Missing or Incorrect Master Data: The customer or vendor master data may not have the correct EU tax information, such as the VAT registration number or the appropriate tax classification.
  Transaction Type: The type of transaction being processed may not be compatible with the EU tax settings.
  Country-Specific Settings: There may be country-specific settings that are not aligned with the requirements for EU transactions.
  
  Solution:
  
  
  Check Tax Code Configuration:
  
  Go to the transaction code OBYZ to review the tax code settings.
  Ensure that the tax code used for the transaction has the correct EU indicator set for output tax.
  
  
  
  Review Master Data:
  
  Check the customer or vendor master data (transaction codes XD02 for customers and XD03 for vendors).
  Ensure that the VAT registration number is entered correctly and that the EU indicator is set.
  
  
  
  Validate Transaction Type:
  
  Ensure that the transaction type being processed is appropriate for EU transactions. For example, check if the sales order or invoice is set up correctly.
  
  
  
  Consult Country-Specific Settings:
  
  Review the country-specific settings in the SAP system to ensure compliance with local VAT regulations.
  You may need to consult with your SAP FI (Financial Accounting) consultant or tax advisor for specific configurations.
  
  
  
  Testing:
  
  After making the necessary changes, perform a test transaction to ensure that the error no longer occurs.
  
  
  
  Related Information:
  
  SAP Notes: Check SAP Notes related to error FS757 for any specific patches or updates that may address this issue.
  Documentation: Review SAP documentation on VAT processing and EU tax regulations to ensure compliance.
  Support: If the issue persists, consider reaching out to SAP support or your internal SAP support team for further assistance.
  
  By following these steps, you should be able to identify and resolve the cause of the FS757 error in your SAP system.