How To Fix FSC1039 - Do not specify a tax code for down payment request in USA!

SAP Error Message - Details

• Message type: E = Error

• Message class: FSC1 - FI-CA Extended: Message Class

• Message number: 039

• Message text: Do not specify a tax code for down payment request in USA!

What causes this issue?

If, when you are calculating tax, you identify the geographical unit
(state, province, area, city) using the jurisdiction code, which is
usually the case in the USA, you must not specify a tax code for down
payment requests.

System Response

The system cannot create correct postings with the current parameters.

How to fix this error?

Remove the tax determination code for down payment requests.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FSC1039 - Do not specify a tax code for down payment request in USA! ?

  The SAP error message FSC1039, which states "Do not specify a tax code for down payment request in USA," typically occurs in the context of financial transactions involving down payments in the United States. This error is related to the way tax codes are handled in down payment requests, particularly in the context of U.S. tax regulations.
  Cause:
  
  Tax Code Specification: In the U.S., down payments are generally not subject to sales tax until the final invoice is issued. Therefore, specifying a tax code in a down payment request is not allowed.
  Configuration Settings: The system may be configured to enforce this rule, preventing users from entering a tax code when creating a down payment request.
  Transaction Type: The type of transaction being processed may inherently not allow for tax codes to be specified.
  
  Solution:
  
  Remove Tax Code: When creating a down payment request, ensure that no tax code is specified in the relevant fields. This is the primary solution to resolve the error.
  Check Configuration: If you are consistently encountering this error and believe it should not be occurring, check the configuration settings in your SAP system related to down payments and tax handling. This may involve consulting with your SAP FI (Financial Accounting) consultant or system administrator.
  User Training: Ensure that users creating down payment requests are trained on the correct procedures and understand that tax codes should not be entered for these types of transactions in the U.S.
  
  Related Information:
  
  SAP Documentation: Refer to SAP's official documentation for more details on handling down payments and tax codes in the U.S. context.
  SAP Notes: Check for any relevant SAP Notes that may address this error or provide additional guidance on handling down payments and tax codes.
  Consulting with SAP Support: If the issue persists or if there are specific business requirements that need to be addressed, consider reaching out to SAP support for further assistance.
  
  By following these steps, you should be able to resolve the FSC1039 error and ensure compliance with U.S. tax regulations regarding down payments.